Your Own Home

Sponsored by:

Keeping Your Investment Safe

NEIGHBORWORKS® ANCHORAGE IS…

• A private non-profit organization• HUD-certified housing counseling agency• Member of a national homeownership network• A non-profit mortgage lender providing

affordable loan products to Alaskans• An affordable housing provider in Anchorage • An affordable housing developer• A community builder and organizer

NeighborWorks® Anchorage

We’re here to help• Over 1000 homebuyers have become

homeowners• Nearly 2000 individuals have received pre-

purchase counseling• We guide people of all incomes through

the home buying process and help them keep their homes

OUR TEAM

Why Protect Your Investment• You changed your spending habits• You saved money for a down

payment• You found the right house • You had your credit history reviewed• You filled out forms• You showed up for classes and

meetings• You committed to the investment

You Will Know

•Refinancing Options•Keeping and maintaining records•Routine Maintenance•How to protect your investment by avoiding predatory lenders and loan scams

•Where to find a life preserver

Refinancing your homewill it be beneficial?

• Rate and term refinance– Will the rate be reduced?– Will the term increase or decrease?– Will the cost be worth it?

• Cash-out refinance– How much equity is in the home?– How much cash is needed and why?– Will it be worth the cost?

Refinancing continued

• Home Equity Loan (second mortgage)– What is the cash being used for?– Is there a better source than the home?– Is the payment affordable?– What is the rate, term and fee?

ASK WHY and is it the BEST CHOICE before refinancing or taking a second loan

on your home

Shopping for a mortgage

• Shop for a lender– Is the lender willing and able to answer all of

your questions• Compare rates, fees and terms• Compare loan types• Where will the loan be serviced• Read and understand all the documents• Don’t sign blank documents

Keeping Records• Purchase a filing cabinet or

fire-safe box• Design system for filing

records• Collect important papers from

sale• Make copies of stored

documents• Keep services contracts and

owner’s manuals

Keeping Records continued

• Keep a file for warranties and receipts

• Make a list of serial numbers• Take photos of home and

contents• Keep separate files for

maintenance projects• Set up a system for financial

records

Homeowner’s Insurance • Dwelling coverage• Other structures• Personal property• Loss of use• Personal liability• Medical payments coverage• Deductible• Condo coverage-is it sufficient

Servicing the loan• Open and read all correspondence from

the lender• Verify the taxes and insurance has been

paid out of the escrow account when due• The lender may sell the servicing of the

loan– Verify sale with the existing lender before

sending payment to the new lender• Send payments only to your mortgage

servicer

Servicing Continued

What to do if payment is returned• The lender may have gone out of business• Keep the original envelope and payment• Contact the original lender, FHA, VA, Freddie or

FNMA• Continue to send correspondence to the lender

(certified mail)• Make the monthly payment into a separate

account DON’T SPEND IT!

Protecting Your Equity• Budget Review• Save for maintenance

and emergencies • Limit credit card use• Don’t use high interest

lenders• Don’t borrow more than

you can repay• Shop before you

refinance

Payroll Advance Services

Check Cashing Agencies

Rent-to-Own Companies

The Bottom Line: Don’t Get Hooked

Know the true cost of the loan and explore the alternatives.Ask each lender about their terms and be sure you can afford to pay

them. All of them!

Other High Interest Lenders

Facing Delinquency • Contact your lender

• Contact a HUD approved counseling agency

• Be honest with yourself and your lender/counselor

• Determine the hardship – Long or short term crisis– Severity of the crisis

Delinquency continued

• Develop a crisis budget– Identify all household income– Identify all expenses– Gather information to verify ability to pay

• Know your options– Keeping the home– Selling the home– Be realistic

Don’t Be Scammed

• Lease-Back or Repurchase Scams– Promise to pay off the delinquent mortgage– Repair credit, pay off credit cards and other

debt– You must “temporarily” sign your deed to a

third party– You are allowed to stay in the home as a

“renter” with the option to repurchase

• Partial Interest Bankruptcy Scams– Ask you to give partial interest in the property

to one or more persons– Make the mortgage payment to the scam

operator in lieu of the lender and pockets the money

– Scammers file bankruptcy to delay foreclosure

– Foreclosure is delayed and may keep you from legitimately using bankruptcy laws to address your financial problems

• Refinance Scams– The scammer poses as a mortgage broker or

lender– Presents you with “foreclosure rescue”

documents to sign– You are told the documents are for a refinance to

bring your mortgage current– The loan documents are Deed Transfer

Documents

You NO LONGER OWN YOUR HOME!!

• Internet and Phone Scams– Scam lenders convince you to apply for a

mortgage loan on the phone or internet– The loan is accepted immediately– You fax documents and send wire transfer

payment to the phony company

You have been set up! Your personal details have been stolen or sold and

your home is still at risk of foreclosure!

• Phantom Help Scams– Scam operator offers services to help the

homeowner with a loan modification or refinance program to avoid foreclosure

– An outrageous upfront fee is charged and grand promises are made

Your lender or housing counselor can help at NO CHARGE!

Warning Signs That You Are Being Scammed

• Demands an upfront fee• Offers to negotiate a loan modification for

a fee• Makes unsolicited offers or “lofty”

advertisements• Recommends you break off contact with

your lender and housing counselor

Continued• Advises you to stop making mortgage

payments• Tells you to send your mortgage payment

to anyone other than your loan servicer• Instructs you to transfer ownership• Makes verbal promises-nothing in writing• Asks you to sign blank documents

There is HOPEIf you are falling behind on your mortgage call

a HUD certified counseling agency

Consumer Credit CounselingService of Alaska

1-800-478-6501 or onlinewww.cccsofak.com

or1-888-995-HOPE or online

www.ForeclosureHelpandHope.org

HousingHelpNowAlaskaHousing Counseling/Foreclosure

Mitigation/Default Mortgage Counseling

Alaska Statewide

www.housinghelpnowalaska.org

1-888-643-5725 

REPORT A SCAMhttp://www.preventloanscams.org

The Loan Modification Scam Prevention Network

The Lawyers' Committee, along with our partners, is leading a large-scale mobilization of resources in a comprehensive campaign to enhance and support existing state and local efforts, increase scam reporting, educate homeowners, and work with law enforcement. 

Know Your Home• Main electrical switch

• Fuse or circuit-breakers

• Hot-water heater thermostat

• Main cutoff valves for water and gas

Safety Suggestions

• Emergency numbers

• Fire safety inspections

• Smoke detectors

• Carbon monoxide detectors

• Fire extinguishers

• Safety ladders

• First-aid kit

• Security

If you have questions, talk tosomeone you can trust, such asa knowledgeable family member,

attorney or a housing counseling agency.