Friend needs help w/foreclosure problem

[JoAnn Senior Member Find all posts View Profile Close JoAnn]

A single mom w/3 girls is facing foreclosure and we have helped with some money, but would like to find 'real' help for her. She works at our church's day care, but only about 20-25 hours a week in the summer and she has gotten behind in house payments. Her ex moved to another state and not working, so she gets NO child support. We've told her to ask if she could get by with just paying the interest on her mortgage until her full time work comes back. She has been to the Welfare department to seek help, but 'she makes too much' ! $300 + a week (now) with 3 kids, and she makes to much???? Her house payments are over $600 a month. Seems to me I've seen articles that there is somewhere out there that she could go to. Anyone have any suggestions. In the meantime I'm telling some others from church that help is needed for this gal, hoping the church family will step in.
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[funtime2 Senior Member Find all posts View Profile Close funtime2]

There has to be something out there. I am sure you will hear more people in this same situation. Asking other churches in the area is the quickest way to get immediate help, but it does not take care of the long term. Good luck in finding a solution.

[wackymother Senior Member Find all posts View Profile Close wackymother]

Has she tried WIC or looked into getting food stamps?

For WIC:
WIC

Here are the eligibility requirements:
WIC Eligibility Requirements

For food stamps:
FNS Food Stamp Program Home Page

Eligibility requirements for food stamps:
Eligibility

Hope this helps. I know there are other programs, let me think for a little while. to you and to her.

[wackymother Senior Member Find all posts View Profile Close wackymother]

Just wanted to add that I know there is a program in our town that operates very, very quietly, but it's designed to assist in cases like this--emergency funding when someone can't make a mortgage payment, paying the utilities bill when the heat is about to be turned off, urgent situations like that. It's called something like the Community Fund. She might give town hall a call?

[wackymother Senior Member Find all posts View Profile Close wackymother]

On this page, if you scroll down to Florida, they have links to different government benefit programs.

Online Information About Key Low-Income Benefit Programs, Rev 1/13/05

Also there's HUD. Here's a page on avoiding foreclosure. Not terribly helpful in this day and age, but maybe there's something useful on the site.

Tips for Avoiding Foreclosure - HUD

[arlene22 Senior Member Find all posts View Profile Close arlene22]

I was given these National Relief Hotlines by the non-profit I volunteer with to give to families in situations like your friends. I hope they are helpful.

Child Support Enforcement Hotline............877-696-6775
For single moms due support, the US Dept. of Health and Human Services will send them a free handbook complete with excellent advice and all their local contact numbers for help.

Child-Care Subsidy Hotline................800-424-2246
When daycare costs are too high, there is help. The National Association of Child Care Resources is a federally funded agency. They provide helpful information about assistance in a family's local area. They will help your caller find all options for child care payment assistance programs.

Mortgage Payment Assistance.........800-750-8956
For families falling behind on mortgage payments, this national agency will work with a family's mortgage company to arrange a workout plan to catch up missed payments. Housing counselors will discuss all options available to avoid foreclosure. Agency does not make loans or buy property.

Debt Relief Hotline..................800-291-1042
For families struggling with credit card debt, (typically over $10,000); relief is available. This national agency will contact a family's creditors, reduce payments, interest, and even principal amounts owed. Harassing collection calls will stop.

Free Bankruptcy Advice..............800-379-0985
Families who cannot use other debt solutions may need to speak with an attorney. The nation's largest consumer law firm has made this hotline available. A family may call for a free conversation to discuss whether debt relief under bankruptcy makes sense for them.

Discount Prescriptions............800-291-1206
Familes can save between 20% and 40% on their prescription medications. No exam needed. National program. No need to make trips to the pharmacy, medication shipped to the home. Call for free information.

[JoAnn Senior Member Find all posts View Profile Close JoAnn]

I was given these National Relief Hotlines by the non-profit I volunteer with to give to families in situations like your friends. I hope they are helpful.

Child Support Enforcement Hotline............877-696-6775
For single moms due support, the US Dept. of Health and Human Services will send them a free handbook complete with excellent advice and all their local contact numbers for help.

Child-Care Subsidy Hotline................800-424-2246
When daycare costs are too high, there is help. The National Association of Child Care Resources is a federally funded agency. They provide helpful information about assistance in a family's local area. They will help your caller find all options for child care payment assistance programs.

Mortgage Payment Assistance.........800-750-8956





For families falling behind on mortgage payments, this national agency will work with a family's mortgage company to arrange a workout plan to catch up missed payments. Housing counselors will discuss all options available to avoid foreclosure. Agency does not make loans or buy property.

Debt Relief Hotline..................800-291-1042
For families struggling with credit card debt, (typically over $10,000); relief is available. This national agency will contact a family's creditors, reduce payments, interest, and even principal amounts owed. Harassing collection calls will stop.

Free Bankruptcy Advice..............800-379-0985
Families who cannot use other debt solutions may need to speak with an attorney. The nation's largest consumer law firm has made this hotline available. A family may call for a free conversation to discuss whether debt relief under bankruptcy makes sense for them.

Discount Prescriptions............800-291-1206
Familes can save between 20% and 40% on their prescription medications. No exam needed. National program. No need to make trips to the pharmacy, medication shipped to the home. Call for free information.

Arlene...THANK YOU for these numbers. I'll print this out and give them to her.
This afternoon we (DH & I) stopped to see a Realtor friend and I asked him about help. He said we should find out how much she owes on the house. Because of some remodeling, there may be a 2nd mortgage/loan on the house and that could have some impact on the whole question. IF she does not have much/any equity in the home, she might be better off to walk away from it instead of getting deeper in the hole. Her ex left with what ever money they did have, leaving her with 4 girls (one has moved out) and debts. Thanks again.

[kbletzer Senior Member Find all posts View Profile Close kbletzer]

Arlene...THANK YOU for these numbers. I'll print this out and give them to her.
This afternoon we (DH & I) stopped to see a Realtor friend and I asked him about help. He said we should find out how much she owes on the house. Because of some remodeling, there may be a 2nd mortgage/loan on the house and that could have some impact on the whole question. IF she does not have much/any equity in the home, she might be better off to walk away from it instead of getting deeper in the hole. Her ex left with what ever money they did have, leaving her with 4 girls (one has moved out) and debts. Thanks again.

Please let her know that whatever she chooses to do, unfortunately there is no "walking away from this". If she is thinking of letting the bank foreclose that could be possibly the worst case scenario for her credit. There are other ways to avoid this with the lender. They do NOT want to foreclose. Sometimes there are ways to work with the lender on re-casting the loan for lower payments. Most lenders are willing to work with a few phone persistent phone calls.

[mdurette Senior Member Find all posts View Profile Close mdurette]

Hello JoAnne:
There is a national organization that has tried to take the lead in helping people in this situation. It is the Home Preservation Foundation - she can reach them at 1-888-995-HOPE. Also try Neighborworks. www.nw.org

If the problem is that she has a mortgage that adjusted into a high rate or simply has a high rate then there there are mortgage programs that can assist her stabalize or lower her rate - thus making the mortgage affordable. BUT, if she already has a decent rate (let's just call it below 7%) then there would be nothing she could do with a refinance. Also - if she owes more than what the house is worth - at this point there is no funding for that situation.

Walking away with a foreclosure is not the best option - the agencies have already set up new guidelines that they will not mortgage anyone with a foreclosure for 5 years. Then add that to a credit report and try to find someone who will rent to you - it will be hard.

Let's assume she has a decent mortgage rate and can't get her payments any lower with a refinance. Even if she got caught up - could she continue to make payments in the future? If she simply doesn't have the income to support the mortgage than she does need to get out of it.

I would recommend she contact her lenders loss mitigation department (I have the phone numbers to all the major mortgage holders - PM me with the mortgage holder and I can check the list). If she needs to get out of the house and she has little or no equity - talk to a broker that KNOWS and has experience dealing with short sales. They are tricky and they the seller needs the experience of a broker who can deal with them.

[mshatty Super Moderator Find all posts View Profile Close mshatty]

A single mom w/3 girls is facing foreclosure and we have helped with some money, but would like to find 'real' help for her. She works at our church's day care, but only about 20-25 hours a week in the summer and she has gotten behind in house payments. Her ex moved to another state and not working, so she gets NO child support. We've told her to ask if she could get by with just paying the interest on her mortgage until her full time work comes back. She has been to the Welfare department to seek help, but 'she makes too much' ! $300 + a week (now) with 3 kids, and she makes to much???? Her house payments are over $600 a month. Seems to me I've seen articles that there is somewhere out there that she could go to. Anyone have any suggestions. In the meantime I'm telling some others from church that help is needed for this gal, hoping the church family will step in.
__________________

Jo Ann,

The best advice to your friend is to get her with a bankruptcy lawyer asap. They can evaluate what is and is not possible. She should not wait to do this.

[gwenyth08 Junior Member Find all posts View Profile Close gwenyth08]

A single mom w/3 girls is facing foreclosure and we have helped with some money, but would like to find 'real' help for her. She works at our church's day care, but only about 20-25 hours a week in the summer and she has gotten behind in house payments. Her ex moved to another state and not working, so she gets NO child support. We've told her to ask if she could get by with just paying the interest on her mortgage until her full time work comes back. She has been to the Welfare department to seek help, but 'she makes too much' ! $300 + a week (now) with 3 kids, and she makes to much???? Her house payments are over $600 a month. Seems to me I've seen articles that there is somewhere out there that she could go to. Anyone have any suggestions. In the meantime I'm telling some others from church that help is needed for this gal, hoping the church family will step in.

If you are interested in stopping a foreclosure, the only sure way to do that, short of paying the account in full, is to file bankruptcy.
If you are not sure if the bankruptcy option makes sense for you, just refer all your question to [to a bankruptcy attorney] so that you can get immediate information and decide whether to make an action or let the foreclosure be done...

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

There are mortgage relief programs as part of the federal assistance program. Individuals can do them themselves but my understanding is that they are so hard to do that you have to pay companies to get throught them for you.

I know someone who did, and their payment went from $1000 to $450, interest only or less.

We redid a loan into a home line of credit, and it is interest only if we like. Our payment went from $850 to $375.

Mortgage Relief: http://www.google.com/#hl=en&expIds=...e9e1c25799f52d

[JoAnn Senior Member Find all posts View Profile Close JoAnn]

Since this came up again I'll give you an update. My friend did lose her house, but through a church friend found a house to rent. Shortly thereafter she met a man and last March they got married, and they are still living in the rented house. Her second oldest got married to her long time BF, who is now in the Navy. The oldest girl is on her own and the youngest are very happy with the new hubby. So this story ended up pretty well.

Thanks for all your ideas and suggestions and websites. I know she appreciated them at the time.

[joycapecod Silver Contributor Find all posts View Profile Close joycapecod]

I guess this story proves that every cloud does have a silver lining (if one belives in those things). I am so happy for your friend!

Joy

[Glitter Brunello Super Moderator Find all posts View Profile Close Glitter Brunello]

This thread was resurrected by a first time poster pushing bankruptcy legal services in a state other than yours - I didn't notice how old the thread was. However, I'm glad it allowed for an opportunity to get an update with good news!