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"Helping restore financial balance to people's lives"
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Auriton can provide you with new home owner education or assist you
if you are having trouble with your mortgage loan. An accredited
HUD certified financial counselor can work with you and your lender
to explore all your options including debt management.
It's important to note that mortgage companies and banks do not
want their customer's homes. If you are having difficulty making your payment,
please call either your servicer to identify your options or Auriton
to review your situation.
Past Due on Your Loan Payments
There may be solutions you have never considered. Working together, you can
get all of the facts and explore every option.
Want to Refinance
If you are considering refinancing, be sure you have all the facts before
making a decision. A financial counselor can show you the pros and cons of
mortgage refinancing in your situation, and may be able to refer you to a
lender who can help.
Buying a New Home
The mortgage qualifying process is one of the most stressful financial
events in the lives of many people. Auriton can refer you to lending agencies that understand your situation and
will treat you with dignity while providing the best possible interest
rates.
Check our mortgage charts and tools to see how much you should borrow, based on your
income and debts.
First Time Home Buyers
Check out our mortgage charts and tools to see how much you can reasonably borrow
for a total mortgage and what your monthly
mortgage payment would be.
All mortgage companies do not offer the same charges and interest rates.
It is best to shop the market before committing to a lender.
If you have any questions or would like a list of recommended lenders,
call 1-877-332-8700.
Preventing Foreclosure
How to Prevent Foreclosure
Homeowners are classified as delinquent when they fail to make a monthly
mortgage payment. A lender recognizes different degrees of delinquency,
according to the number of missed payments and the reasons given for the
default.
A distressed delinquent is a homeowner who has reasonable excuses for
the default, along with the ability and the desire to pay. The lender
may request to work out a repayment plan with distressed delinquents and
may recommend financial counseling.
A chronic delinquent is a homeowner who has no justifiable reason for
missing loan payments and whose payments are habitually late. Usually,
the homes of chronic delinquents end up in foreclosure.
Surviving a Financial Crisis
It is important for homeowners to understand that it is not a good idea
to take on additional debt to repay old debts. Instead, a homeowner who
is experiencing a financial crisis should identify and address the cause
of that crisis.
First, the homeowner should determine whether the crisis is a temporary
financial problem or a long-term difficulty. Making this distinction
will help the homeowner decide on a strategy for dealing with the crisis
and avoiding foreclosure.
Prioritizing Debts During a Crisis
For most homeowners, the loss of a house means not only
the loss of shelter, but also the loss of many years of investment in
the creation of home equity and a livable household environment. For
that reason, making the monthly mortgage payment should be one of the
highest financial priorities every month. Special attention should
also be given to those creditors who can take quick action against the
home, the utilities, the car or other commodities the household needs.
The order of priority each household assigns to such payments will
depend on the household's particular needs and characteristics.
Homeowners should be aware that they do not necessarily have to assign a
high priority to those creditors who persistently demand to receive
their defaulted payment or otherwise apply pressure to the homeowner
during the crisis period.
The following list is a useful guideline for
prioritizing household debts.
Other Important Tips
Communicating with the Mortgage Loan Service
A lack of understanding about the process of foreclosure and the
distress and panic created by the threat of losing a home may produce a
tendency toward inaction. It is very important for the homeowner to
understand that acting on time is essential to avoiding foreclosure. In
most instances, a delay in action may end in a loss of the homeowner's
legal rights. Homeowners should call their mortgage institution as soon
as they begin to have financial problems. By being the first to call,
homeowners establish their good faith in the eyes of the lender. There
are many alternatives that can be arranged with the lender if the
homeowner calls early in the process. When communicating with the lender
or servicer, homeowners should keep the following steps in mind:
Identify Lender/Servicer
Homeowners
First identify the lender or servicer to whom the monthly payment is owed. A
servicing agent may be a bank, mortgage company or private corporation
hired by the actual lender to service the loan. Servicing the loan
includes collecting payment, issuing payment coupons and late notices,
monitoring insurance and tax payments and handling foreclosure if
necessary. Large national servicers often have different departments
assigned to different stages of delinquency. Homeowners should be aware
that they need to ask for the right department, so that they do not
waste time and effort talking to the wrong people.
Call the Lender/Servicer
Homeowners should keep a
record of all the telephone numbers, addresses and names of their
contacts. When a homeowner begins to experience financial difficulty, he
or she must call the appropriate division and explain the financial
situation in detail. The homeowner should keep a record of this
conversation, including the date and time of the call, the name of the
person talked to and the response. If there are any initial agreements
made during this phone call, the homeowner should write them down and
keep ongoing records.
Write a Letter
Soon after making the initial phone
call, the homeowner should write a letter explaining the reasons for the
delay in payment and make reference to the telephone call. In this
letter, homeowners should declare their willingness to continue to make
payments on the home.
Respond to Inquiries
It is vital that the homeowner respond to
follow-up inquiries from the lender or servicer immediately. It is not
recommended that homeowners avoid contact with them, no matter how
difficult or unpleasant that contact may be. Instead, homeowners who are
having problems making their payments should aim to establish a paper
trail, which will help demonstrate that they are cooperating. Some
lenders and servicers are now making special efforts to mitigate the
anxiety of the circumstances surrounding delinquency and default by
reaching out to low and moderate income borrowers through the services
of community organizations.
Consequences of Foreclosure
If a foreclosure is completed and the house is sold, it is rare that the
homeowner can do much to recover the property. In states with
redemption periods, the homeowner can reclaim the home after the sale
date by repaying the entire debt. In states without redemption periods,
the property belongs to the mortgage company or the highest bidder
immediately after the sale. In rare cases, homeowners who question the
procedure of the foreclosure have the right to start legal action
against the lender or servicer in order to recover the home. In some
instances, the homeowner may question the amount of money that the
lender or servicer is claiming to be owed.
If the property was sold for less than the lender or servicer was owed,
the homeowner may be responsible for paying the balance due and
outstanding property taxes (depending on the state). If the property was
sold for more than was owed to the lender or servicer, the homeowner may
receive some money back. Either way, there may be tax consequences to
the homeowner, as governed by local laws and the IRS. The homeowner
should contact a tax accountant or attorney to determine any liability.
Another serious consequence of foreclosure is that, after the sale of
the home, the credit record of the homeowner will include the
foreclosure.
Call 1-877-332-8700 now to talk to a counselor or complete our on-line
free consultation
and a counselor will contact you.
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