If you are experiencing financial hardship and may be at risk of missing your mortgage payments or if you are at risk of foreclosure – we encourage you to do the following (please review all the items below and follow through on the ones best suited to your situation):
1. Contact your www.homeownershipsf.org to be connected with a HUD-approved counseling agency.
2. Talk to a housing counselor about the Mortgage Assistance Loan Program offered by the Mayor's Office of Housing and Community Development.
SUMMARY: The Mortgage Assistance Loan Program (MALP) is a no monthly payment loan, no interest loan up to $50,000 which is repaid when a homeowner sells their property. In lieu of interest, the homeowner pays an equitable share of any appreciation upon sale. A qualified homeowner must occupy their single family home or condominium as their primary residence prior to and during the duration of the MALP loan and have enough equity in the home to cover the amount borrowed.
TO APPLY: Applications for MALP are submitted by a participating HUD approved counseling agency. Please contact www.homeownershipsf.org to get started today.
Mortgage Assistance Loan Program Information and Forms:
A housing counselor can help you assess your situation and guide you in applying for MALP, as well as other options that may be available from your mortgage lender. The counseling agencies are certified by HUD, and the foreclosure prevention counseling service is offered to the public for free.
3. Familiarize yourself with the foreclosure process and timeline (click for info from HUD presented in a new browser window).
4. Submit a written, signed and dated hardship letter to your mortgage lender. Include any documents that support your hardship claim. Submit any and all financial documents requested by your lender, including bank statements, pay-stubs, tax returns, as well as any other forms requested by your lender. Retain photocopies of all the forms you submit to your lender.
5. Familiarize yourself with the different terms and options to avoid further loan payment default or foreclosure. Ask your lender about the following (you may also view a glossary of terms on HUD's website):
a. Reinstatement (Cure)
b. Repayment Plan
c. Loan Modification / HAMP (Home Affordable Modification Program)
d. Forbearance Agreement
e. Special Forbearance
f. Refinance / HARP (Home Affordable Refinance Program)
Inquire if there are any other options that are not listed above.
6. Follow-up! It does not hurt to contact your lender as often as necessary to request an update about your application for hardship program evaluation. Before agreeing to or signing unfamiliar terms or documents – reach out to a housing counselor for guidance (see item #2, above, for a listing of non-profit housing counseling agencies).
7. If keeping your home is no longer a realistic option – think about the following (talk with your housing counselor and lender):
a. Consider selling the property
b. Ask about Short Sale – only if your outstanding loan exceeds the value of the property
c. Ask about Deed-In-Lieu of Foreclosure
d. Ask about transition assistance or cash for keys
|IMPORTANT: Please beware of foreclosure rescue or loan modification scams! Do not give any money up-front to any individual or organization that claims that they can help save your home from foreclosure or you get your mortgage loan modified.
If you or someone you know is a victim of fraud, please report it to the State of California Department of Justice, Office of the Attorney General.
Restrictions on homeownership units under the Inclusionary Below Market Rate Housing or BMR program survives foreclosure. The public is advised to carefully review and examine Title Reports when purchasing property in foreclosure. BMR units must be resold to a program and income qualified first-time homebuyer only. If you have any questions regarding this notice, you may contact the Mayor’s Office of Housing and Community Development at (415) 701-5500.
Please visit the sites below for further helpful information:
- Foreclosure Process and Timeline (resource: HUD)
- Making Home Affordable (resource: US Dept of the Treasury and HUD)
- Know Your Options (resource: Fannie Mae)
- Avoiding Foreclosure Resource Center (resource: Freddie Mac)
- Keep Your Home California (resource: CalHFA MAC)
- Stop Mortgage Fraud (resource: State of California DOJ)
To learn about foreclosure prevention workshops and events, please visit:
- HomeownershipSF (a collaboration of experienced, nonprofit homeownership service providers)
If you are a tenant residing in a rental unit that is in the process of foreclosure, you may contact one of the following agencies for advice:
- Asian Law Caucus (415-896-1701)
- Causa Justa Just Cause (415-487-9203)
- Eviction Defense Collaborative (415 947-0797)
- Housing Rights Committee of San Francisco (415-703-8634)