Local Resources May Help You Save Your Home

If you are having a hard time making your mortgage payments don’t wait until it’s too late.

Over 1 million homeowners in the US were under foreclosure proceedings in 2007; it is expected that another 2 million will follow this year. The number of Illinois homeowners in some stage of foreclosure rose nearly 62% in the first three months of this year compared to the same period last year, according to a recent Crain’s Chicago Business article.

Foreclosure can occur when payments become three to four (or more) months late, depending on the mortgage terms. Many mortgages that have adjustable rates (ARM) are negatively affecting families as the monthly payments make a big jump, many times beyond people’s ability to afford. If you know your monthly payment will change or are not sure about your loan terms, you should seek help from a lending specialist.
 

Gerry Martinez, a lending specialist for the LUCHA (Latin United Community Housing Association), a non-for-profit community based organization that works on housing issues, says that it is critical that people speak to their mortgage lender if they are having trouble. “Banks are more willing to negotiate with people these days,” Mr. Martinez told LSNA, “and lenders may be able to freeze rates before an ARM comes up.”
 

Neighborhood Housing Services (NHS), another local organization that also counsels homeowners formed the Home Ownership Preservation Initiative (HOPI) in 2003 to respond to the foreclosure crisis. Through the HOPI program NHS has counseled over 6,600 families and prevented over 1,600 foreclosures. In addition to providing foreclosure intervention counseling and services, NHS also has the ability to provide refinance loans to Chicago (or Elgin) homeowners who need affordable mortgages.
 

If you wait too long it may be too late. Sometimes, for those in severe debt, giving the keys back to the bank is the only choice left. LUCHA’s Gerry Martinez has seen plenty of cases that could have avoided foreclosure. “Many folks wait too long due to shame or lack of knowledge. The sooner people get help the better their chances are and we may be able help them navigate the loan modification process,” he added.
 

Both LUCHA and NHS work with ITIN borrowers and both organizations have Spanish speaking counselors available. You can link to NHS by calling the City’s 311 number or call 888-995-4673. To contact LUCHA call 773-276-5338. For information about financial counseling call Marcelo Ferrer at LSNA’s Center for Working Families at 773 342-1168 extension 207.

 For 7 tips on avoiding foreclosure, visit http://www.lsna.net/display.aspx?pointer=6009.