HCD Foreclosure Avoidance Information for Owner Occupied Properties

Welcome to the Department of Housing and Community Development's (HCD) Foreclosure Avoidance Information Page for Owner Occupied Properties. If you are having trouble making your mortgage payments to the HCD on your home, or if you wish to discuss options to avoid foreclosure, please continue reading.

The most important thing to do if you think you may be having trouble making your payments is to contact your lender. Although it may be difficult to make that call, your lender has representatives available to discuss your situation in detail and explore your options.

Depending on their circumstances, borrowers who are unable to afford their mortgage payments to HCD and wish to avoid foreclosure have potential options:

• Special Forbearance Plan – a written agreement allowing borrowers to either suspend or reduce monthly payments for a specified period of time until they are able to make payments to bring the loan current.
• Repayment Plan – a written agreement allowing borrowers to repay their late or unpaid mortgage payments by making a scheduled payment in addition to the regular monthly payment.
• Loan Modification – a change in one or more of the terms of the note in order to bring the loan current by adding the amount owed to the loan balance and/or re-adjusting the balance within the existing remaining term. This will not reduce the total loan balance.
• Short Sale – borrower selling the property and the lender accepting less than the total balance of the loan.
• Deed-In-Lieu – borrower voluntarily gives up the title of the home to the lender.
• Military Relief – rights and protections provided under the Servicemembers Civil Relief Act or the California Military Families Financial Relief Act.

More detailed information regarding these options is available, and all options are subject to, among other things, HCD discretion, as well as to California and federal laws, and HCD's policies, regulations, and guidelines.

If you have a loan serviced by HCD, and are worried about missing payments or wish to discuss options to avoid foreclosure, please:

• Call HCD's Foreclosure Avoidance Information Line, toll free, 1 (866) 866-0893.
• Keep HCD staff informed of your primary and secondary telephone numbers and current mailing address.
• Respond to HCD telephone calls and requests for information within all requested time frames.
• Contact a HUD-certified housing counseling agency at 1 (800) 569-4287.
• Gather information about your financial situation when discussing options for avoiding foreclosure.
• Send written requests and information to HCD by faxing to (916) 263-2763 or mailing to:
  

  Attention: Asset Management and Compliance Section
  2020 West El Camino Avenue
  Sacramento, CA
  95833

Borrowers should have these documents ready when discussing options to avoid foreclosure with HCD:

• Hardship affidavit (Fanniemae form 1021 or equivalent) and detailed letter explaining the reason for the delinquency, with supporting documentation to verify hardship. Documentation supporting hardship must not be more than 90 days old.
• Borrower(s) to provide a list of all personal expenditures (i.e. credit cards, loans groceries, utilities, child care, insurance, gasoline, etc.)
• Last two years signed federal tax returns, including all schedules and k-1s, if applicable. If a borrower is self-employed, provide two years signed business tax returns and YTD Profit and Loss Statement and Balance Sheet.
• Verification of income (last two months computer-generated pay stubs with YTD income)
• Verification of all supplemental income, if applicable
• Verification of deposit (last two months bank statements)
• Current homeowners insurance declarations page

Additional information may be requested by HCD in order to make a final decision on any option discussed. Approval by the mortgage insurer, investor, or other lenders may also be required.

Helpful Toll Free Phone Numbers & Web Sites

HCD Foreclosure Avoidance Information
Line 1 (866) 866-0893

HUD-certified Housing Counseling Agencies
1 (800) 569-4287
www.hud.gov/foreclosure/index.cfm

California's Consumer Home Mortgage Information
www.yourhome.ca.gov (in English)
www.sucasa.ca.gov (en Espaħol)

Homeownership Preservation Foundation
1 (888) 995-HOPE (4673)
www.995HOPE.org

Rural Community Assistance Corp (RCAC) Foreclosure Counseling Agencies
http://www.rcac.org/news.aspx?80

Military OneSource
1 (800) 342-9647
www.militaryonesource.com