Foreclosure Mitigation & Prevention

Free Foreclosure Counseling

Wyoming Housing Network (WHN) is a non- profit, HUD approved agency that offers foreclosure counseling to any property owner in Wyoming whose primary residency is in jeopardy of     foreclosure.   WHN offers education and support to help distressed homeowners navigate through the often confusing and frustrating process of working to bring a loan current through a loss mitigation strategy, or through the transition out of the home.  The decision to reach out for help with your mortgage is not one that is easy to make, so we congratulate you for taking the first step towards saving your home and preventing foreclosure

Homeowners who are interested in WHN’s free assistance can begin by completing the Foreclosure Intervention Package.  Please make sure to send only copies, not originals, when submitting documents.  Calls are also welcome at our office:  in Casper (307) 472-5843, or toll free from anywhere in the state (877) 549-1402.

We Use HOPE LoanPort to Expedite Your Application

WHN offers HOPE LoanPort to help you make it through the challenging process of finding an alternative to foreclosure.  HOPE LoanPort is a web-based tool that streamlines your paperwork, allowing our housing counselors to efficiently transmit your completed application to your mortgage company.  Using Hope Loanport eliminates lost paperwork and allows for a faster decision on your application. HOPE LoanPort provides peace of mind for you and  your family at a time when you are struggling with your mortgage.

Beware of Foreclosure & Loan Modification Scams

If it’s too good to be true, it probably is!  Counseling from non-profit, HUD approved agencies is free of charge.  Know who you are dealing with before you hand over any money or personal information.  Contact the Wyoming Attorney General at (307) 777-7841, or the U.S. Department of Housing and Urban Development (HUD) at (800 569-4287 to verify that the company or organization is legitimate, reputable, and licensed.

• Tips on Avoiding Foreclosure
• Do’s and Don’ts of Foreclosure
• Interactive Tool for Homeowners

If You Are Behind on Your Mortgage Payments…

Contact your lender/loan servicing department as soon as you know you are not going to be able to make a payment.  When people encounter financial problems, it is a natural reaction to avoid contacting creditors. This is a poor strategy if you really want to keep your home. Your lender (or servicer) is willing to work with you as long as you initiate contact as soon as you know of an impending delinquency.

Alternatives to Foreclosure – What Are Your Options?

Retention Options – (Source: Federal Trade Commission)

1. Repayment plan: Your servicer gives you a fixed amount of time to repay the amount that is past due by adding a portion of the delinquency to regular monthly payments. This option may be appropriate if you have missed only a few payments.
2. Reinstatement: You pay the entire past-due amount, plus any late fees or penalties by a date that you both agree to. This option may be appropriate if your problem paying your mortgage is temporary or has already been resolved.
3. Forbearance: Your mortgage payments are reduced or suspended for an agreed period of time. At the end of the agreed upon time period, you resume making your regular payments as well as a lump sum payment or additional partial payments for a specified number of months to bring the loan current. Forbearance may be an option if your income is reduced temporarily (for example, you are on disability leave from your job and you expect to go back to your fill time position shortly). Forbearance is not going to help you if you are in a home that you can’t afford.
4. Loan Modification: You and your loan servicer agree to permanently change one or more of the terms of your mortgage contract to make your payments more manageable for you. Modifications can include lowering the interest rate, extending the term of the loan, or adding missed payments to the loan balance. A loan modification may be necessary if you are facing a long-term reduction in your income.

Non-Retention Options – (Source: Federal Trade Commission)

1. Selling Your House: Depending on the real estate market in the area, selling the home may provide funds to pay the mortgage debt in full plus all expenses connected to selling the home (such as real estate agent fees). Servicers may postpone foreclosure proceedings for a specified period of time if you decide to sell your home. Such a sale would allow you to avoid legal fees and further damage to your credit rating and protect your equity in the property.
2. Short Sale: Your service may allow you to sell the home before it forecloses on the property, agreeing to forgive any shortfall between the sale price and the mortgage payoff balance. This approach avoids a damaging foreclosure entry on your credit report. You may still face a tax liability on the amount of debt forgiven. Consult a financial advisor, accountant or attorney for more information.
3. Deed in Lieu of Foreclosure: Upon mutual agreement between you and servicer, property title is transferred in exchange for cancellation of the remainder of your debt. Though you lose the home, a deed in lieu of foreclosure can be less damaging to your credit than a foreclosure. You will lose any equity in the property, and may face an income tax liability on the amount of debt forgiven. Consult a financial advisor, accountant or attorney for more information. A deed in lieu of foreclosure may not be an option for you if other loans or obligations are secured by the property.
4. Bankruptcy: Personal bankruptcy is generally considered the debt management option of last resort because the results are long-lasting and far-reaching. A bankruptcy stays on your credit report for 10 years, and can make it difficult to obtain credit, buy another home, get life insurance, or sometimes, even get a job. Still, it is a legal procedure that can offer a fresh start for people who can’t satisfy their debts.