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Foreclosure Prevention/Home Ownership Preservation Initiatives (HOPI)

Click here to go to the official City Of Chicago website now. 

The City of Chicago and its partners have been working to address the issue of foreclosures for a number of years, creating new initiatives to address the various aspects of the foreclosure issue.

Foreclosures impose significant costs not only on borrowers, but also on municipal governments, neighboring homeowners and others with interest in nearby properties. In an effort to prevent foreclosure for Chicago homeowners and mitigate the impact of foreclosure on neighborhoods, the City of Chicago has launched a number of initiatives.

Our efforts today are a continuation of the Home Ownership Preservation Initiative (HOPI), where any Chicago resident who is having trouble paying their mortgage can be connected to a financial counselor by calling 311.

The Home Ownership Preservation Initiative (HOPI) is a partnership between the City of Chicago, Neighborhood Housing Services of Chicago, and key lending, investment and mortgage servicing institutions doing business in Chicago. The partnership seeks to preserve homeownership whenever possible and keep families in their homes through counseling, loss mitigation and loan workouts. When foreclosure is unavoidable, the partners seek to preserve the vacant properties as neighborhood assets.

Since 2003, the initiative has prevented more than 2,800 foreclosures, reclaimed 717 vacant, troubled buildings and counseled more than 14,500 Chicagoans.

Other efforts include Borrower Outreach Days which have provided an expanded level of service in the communities hardest hit by foreclosures by providing working families who are at-risk of foreclosure a direct connection with lending institutions and HUD-certified counseling agencies.

Since 2007 when Borrower Outreach Days was launched, the City has sponsored 20 Borrower Outreach Days sessions and helped more than 4,700 homeowners.

We have also sponsored other outreach efforts aimed at helping homeowners navigate the federal loan modification program known as the Making Home Affordable Program.

In 2009, the City with the help of a number of partners sponsored two successful Borrower Outreach events that drew nearly 1,200 people. Our success rate is twice the national average – 34 percent of our residents who sought help from us in these events were given a loan modification – that is twice the national average.

In 2010, we will use $1 million in stimulus funds to sponsor six more “Fix Your Mortgage” events to help people with loan modifications. And the City has also received $22.4 million in CDBG-R Funds for 2010, part of the federal stimulus bill, for foreclosure prevention, foreclosure counseling and for the conversion of vacant foreclosed condominiums into affordable rental units.

This includes stimulus funds totaling $1.8 million to fund additional counseling agencies and legal service providers to help more homeowners, home buyers and renters mediate the impacts of foreclosure.

Like every city, we must tackle the foreclosure challenges with many approaches and various different entities: Local, state and federal agencies must join with the real estate and banking communities, and other stakeholders in a candid discussion about the impact of the foreclosure crisis on our communities.

We will continue to work side by side across the city to meet the needs of our residents.

Home Ownership Preservation Frequently Asked Questions:

How does the counseling session work?

The 311 Operator will connect you with a not-for-profit, accredited housing counselor. The counseling session will take place over the phone and is completely confidential. The counselor will gather information from you about your financial obligations and work through your options for avoiding foreclosure. If appropriate, the counselor will help you contact your mortgage lender and negotiate a repayment plan. The counseling agency will:

• Provide an in-depth assessment of the homeowner’s financial situation and an individual action plan
• Serve as a liaison between the homeowner and the mortgage company, where appropriate, to advocate for a repayment plan, loan modification or other loss mitigation strategy that will help the homeowner avoid foreclosure.
• Provide referrals to local resources, where appropriate, for job training, tax assistance, emergency grants, and foreclosure prevention classes.

How long does the counseling session take?

You should be prepared to spend at least 45 minutes on the phone with the counselor. If you are not able to participate in a counseling session right now, you should call back as soon as you have time available. I’m not in foreclosure now, but I lost my job and am afraid I won’t be able to make my mortgage payment.

Can I participate?

Yes. A counselor can help you establish a budget to get through the next few months.

Are there grants available?

Depending on your particular financial and family situation, there may be low interest loans or emergency funds available. The only way you can determine the best options available is by speaking with a housing counselor.

Is there a cost for this counseling?

The counseling is being provided free of charge to callers. The City of Chicago and participating lenders are funding the program

Need help working through your options to prevent foreclosure? Get help from a HUD Approved Counselor. Go to http://HUD.gov now.

Beware of Foreclosure Rescue Scams!

Monday
February 8, 2010

Scam artists prey on struggling homeowners and often target defendants named in foreclosure proceedings. Don’t let them take advantage of YOU! The best way to avoid becoming a victim is to get informed and ask a lot of questions. If you receive an offer, information or advice that sounds too good to be true, it probably is!

Follow these tips to avoid becoming a victim to a predator:

1. Help Is Available For Free! You can always negotiate directly with your mortgage company yourself at no charge. Or you can use the services of a reputable counselor to help you. A list of HUD approved counselors are available on their website at HUD.gov  Beware of any person or organization that asks you to pay a fee in exchange for their counseling services.
2. Beware of anyone that asks you to sign or transfer over to them the deed to your house! Do not sign over the deed to your property to any organization or individual unless you are working directly with your lender to forgive your debt.
3. Do not sign papers in exchange for a promise that someone will pay off your debt. ALWAYS be sure to read and understand all paperwork before signing anything – or have a knowledgeable 3rd party review it. Make sure that you are not unknowingly giving someone else ownership of your home!
4. Never make your mortgage payments to anyone other than your mortgage company – unless your lender specifically instructs you to do so – IN WRITING. A common scam is for the con artist to direct you to make your mortgage payments to them while they “negotiate with your lender”.  All they are really doing is pocketing your hard earned cash.
5. Beware of anyone that tells you not to use a real estate professional or a title company to sell your home. You should always have a licensed real estate professional, an attorney or a title company help you with any transaction involving your home.
6. Know the person you’re doing business with! Before responding to any person or organization offering to “save you”, find out if their organization is HUD approved. Your lender OR a HUD-approved counselor is the safest source of information and help.

Find a HUD approved counselor now.

I do well when YOU do well!

“To Your Success!”
mary!

Foreclosed Homes In Chicago

Foreclosure Prevention

Thursday
January 14, 2010

The Chicago Sun-Times reports that Chicago foreclosures are up 33% in 2009 over  ’08. Foreclosures in December ’09 were up 18% from November ’09. The four states with the highest foreclosure rates accounted for more than 50% of the foreclosures nationwide!

As bad as the numbers are, they would be worse without goverment and private intervention. If you are in trouble, you may want to consult with the Homeownership Preservation Initiative – a partnership between the City of Chicago, Neighborhood Services of Chicago and key lending services. The organization seeks to keep families in their homes through counseling, loss mitigation and loan workouts. For more information, go here.

Also, the City of Chicago sponsors “Borrower Outreach Days”.  These are 1/2 day workshops where you bring in your loan documents and sit down with a counselor that will help you negotiate with your lender to stay in your home. It is excellent – and FREE!

In this environment, you ONLY want to deal with reputable people. There are many con artists and crooks looking to take advantage of your situation. Never, Never NEVER! pay anyone or sign any documents unless you first have an attorney or a knowledgeable 3rd party review them! YOU DO NOT WANT TO BECOME THE VICTIM OF A CON ARTIST! You do NOT need a 3rd party to negotiate with your lender!

I do well when YOU do well!

“To Your Success!”
mary!

Rescuing Your Home From Foreclosure

Wednesday
December 30, 2009

More than 70,000 homes fell into foreclosure last year in Chicago.  Homeowner, Adlene Roberson, is currently fighting the system to keep from becoming another one of those 70,000. “I owe $218,000 on an interest only loan and my house is valued at $75,000″

Even though Adlene and her husband have continued to make their mortgage payments, Adlene’s daycare business dried up and their income has been cut in half. Their plight is hardly unique. Many homeowners are “upside down” on their mortgages and find themselves backed into a corner as a result. They are not able to sell their property for enough money to pay off their loan. If income is drastically reduced – as in the case of the Roberson’s – it becomes difficult to justify continuing to make the mortgage payments.

In the case of the Roberson’s, their lender refused to help. It is important in a situation like this to know one’s rights. HUD approved organizations offer free counseling and sometimes half-day workshops. (Go to Hud.gov  for a list of approved agencies and programs in Illinois.)

Taking a house away from a homeowner can take more than a year! A family can use that time to negotiate a better loan or find a better job. In the meantime, HUD approved agencies will help you navigate the bureaucracy and paperwork with your lenders.

Never, Never NEVER! pay anyone or sign any documents unless you first have an attorney or a knowledgeable 3rd party review them! YOU DO NOT WANT TO BECOME THE VICTIM OF A CON ARTIST! And while counseling agencies can be of enormous help, you do NOT need a 3rd party to negotiate new terms with your lender!

I do well when YOU do well!

“To Your Success!”
mary!