Mortgage Lender

HUD PROPOSES NEW RULE TO ENSURE EQUAL ACCESS TO HOUSING

HUD No. 11-006
Brian Sullivan
(202) 708-0685

WASHINGTON – The U.S. Department of Housing and Urban Development today proposed new regulations intended to ensure that its core housing programs are open to all eligible persons, regardless of sexual orientation or gender identity.  View the proposed rule announced today.

“This is a fundamental issue of fairness,” said HUD Secretary Shaun Donovan.  “We have a responsibility to make certain that public programs are open to all Americans.  With this proposed rule, we will make clear that a person’s eligibility for federal housing programs is, and should be, based on their need and not on their sexual orientation or gender identity.”

 HUD is seeking public comment on a number of proposed areas including:

• Prohibiting lenders from using sexual orientation or gender identity as a basis to determine a borrower’s eligibility for FHA-insured mortgage financing.  FHA’s current regulations provide that a mortgage lender’s determination of the adequacy of a borrower’s income “shall be made in a uniform manner without regard to” specified prohibited grounds.  The proposed rule would add actual or perceived sexual orientation and gender identity to the prohibited grounds to ensure FHA-approved lenders do not deny or otherwise alter the terms of mortgages on the basis of irrelevant criteria.
   
• Clarifying that all otherwise eligible families, regardless of marital status, sexual orientation, or gender identity, have the opportunity to participate in HUD programs.  In the majority of HUD’s rental and homeownership programs the term “family” already has a broad scope, and includes a single person and families with or without children.  HUD’s proposed rule clarifies that families, otherwise eligible for HUD programs, may not be excluded because one or more members of the family may be an LGBT individual, have an LGBT relationship, or be perceived to be such an individual or in such relationship.
   
• Prohibiting owners and operators of HUD-assisted housing, or housing whose financing is insured by HUD, from inquiring about the sexual orientation or gender identity of an applicant for, or occupant of, the dwelling, whether renter- or owner-occupied.  HUD is proposing to institute this policy in its rental assistance and homeownership programs, which include the Federal Housing Administration (FHA) mortgage insurance programs, community development programs, and public and assisted housing programs.

Other actions:

HUD is conducting the first-ever national study of discrimination against members of the LGBT community in the rental and sale of housing.  Every ten years, HUD does a study of the impact of housing discrimination on the basis of race and color.  HUD undertook this important research in 1977, 1989 and 2000 and is currently undertaking this study again. It is believed that LGBT individuals and families may remain silent because in many local jurisdictions, they may have little or no legal recourse. While there are no national assessments of LGBT housing discrimination, there are state and local studies that have shown evidence of this sort of bias. For example, a 2007 report by Michigan’s Fair Housing Centers found that nearly 30 percent of same-sex couples were treated differently when attempting to buy or rent a home.

HUD currently requires its recipients of discretionary funds to comply with local and state non-discrimination laws that cover sexual orientation or gender identity.  In July, the Department issued new guidance that treats discrimination based on gender nonconformity or sex stereotyping as sex discrimination under the Fair Housing Act, and instructs HUD staff to inform individuals filing complaints about state and local agencies that have LGBT-inclusive nondiscrimination laws.

The Fair Housing Act prohibits discrimination in rental, sales and lending on the basis of race, color, national origin, religion, sex, disability and familial status. Approximately 20 states, and the District of Columbia, and more than 150 cities, towns and counties across the nation have additional protections that specifically prohibit such discrimination against LGBT individuals. Under guidance announced last year, HUD will, as appropriate, retain its jurisdiction over complaints filed by LGBT individuals or families but also jointly investigate or refer matters to those state, district and local governments with other legal protections.

Mortgage Lender

How to Deal With Foreclosure Aftereffects?

You will find very few people choosing foreclosures voluntarily. The inability of a person to pay back mortgage installments often creates a foreclosure situation. Now, there can be various reasons why a borrower falls behind paying the monthly payments. As a result, a borrower has to face the severe aftereffects of foreclosure.

A sudden job transfer, job loss or medical emergencies are few of the situations which can occur at any point of time. However, a good understanding of the ill-effects of a foreclosure may help you plan out the finances in an advanced way so that you will never require facing the dreadful reality.

Given below are some important steps which will help you to deal with the foreclosure aftereffects.

 Inform and talk to your lender

It is not only the borrower that wants to avoid foreclosures, the lender even do not want such situations to appear either. A lending institution makes money off the interest that you pay as your mortgage installments. And if it forecloses, the lender will not be achieving the interest. Therefore, most lenders shall be willing to assist you to keep your mortgage installments moving.

The right way to get help from your lender will be to let them know about your situation. If you face trouble making your payments them tell them directly. You will be losing all trust and the credibility if you wait for long and then go way behind on the payments.

 Repayment plan

If you are facing trouble paying the mortgage payments on the scheduled time, then talk to the lender about repayments.  A repayment plan can prove handy if you miss out the payments due to an urgent situation. Few lenders can allow you to pay off all the missed payments over 2 to 3 months on request.  So, it’s better to ask for assistance.

If your mortgage lender is flexible enough then he or she will be willing to rework all the mortgage terms so as to lessen the monthly payments. The lender can also lengthen the schedule of amortization.  Doing this, you can even roll on with the missed payments and get back paying off your payments at a low rate of interest.  Such an initiative can actually work to make paying the mortgages possible even during the financial difficulties.

Hard money loan

This might be an unpopular option but can prove to be a saving grace.  The hard money loans don’t include best terms.  In fact, these loans include higher rates of interest and a lot of fees along with it. However, these kinds of loans can offer you time which you require in order to sell out your home before your lender chooses to foreclose it.

Seek Crisis lines

Foreclosure aftereffects can be severe for a person facing financial hardship, displacement and bad credit situation. Dealing with this depression and anxiety can really be challenging.  Self-defeating thoughts may even lead to numerous physical symptoms.  Asking for assistance to improve the quality of life can be the best way to deal with the foreclosure aftereffects

Mortgage Lender

Have Problems Paying Your Mortgage? Call Your Lender To Help You Out

With so many American homes going into foreclosure, it should be of no surprise that lenders are willing to go the extra mile to help you keep your home. However, you must act right away. The sooner you act, the better chance you have of keeping your home from going into foreclosure.

 Problems – Start With Your Lender

If you notice you’re having issues or will be, you need to speak with your mortgage lender. Stop procrastinating and make this phone call. They won’t judge you or yell at you for getting into trouble; it happens. Mortgage lenders make their money by your monthly payments; if you don’t make it and they have to foreclose, they lose money. It’s in their best interest to find ways to help you salvage your credit and keep you in your home.

If you wait too long, you make it harder for the lender to get you help. If the lender hasn’t heard from you after three months of no payments, the company will have to start the foreclosure process. Make sure you take the necessary steps to keep your home from entering the foreclosure process; not just for your home but for your credit too.

Before You Call The Lender

The first thing you need to realize before you call the lender is to swallow that pride and resign yourself to realize you need help. Give the lender the reasons why you are unable to make the payments and be truthful about it. You want to make a good impression so you need to answer as truthfully as you can to the questions being asked.

Six Ways Your Lender Can Help You

There are six ways that your lender can help you but it’s based on each person’s unique situation. These six ways include:

• Bankruptcy
• Debt counseling
• Deed in lieu of foreclosure
• Grace period
• Payment forbearance
• Sell the home

 Bankruptcy should be used only as the last resort since it can negatively affect your credit (usually up to 10 years). Bear in mind that bankruptcies are much harder to come by due to recently passed laws.

Debt counseling is usually offered when all the debt you have has fallen behind, not just the mortgage. Spending and structured repayment plans are typically designed to help you get back on your feet.

Grace periods are given to homeowners so they can wrangle with the problems on their own. However, if you don’t stay in touch with your lender during this time, they will start the foreclosure process.

Deed in lieu of foreclosure means you voluntarily return the home to the lender. However, you’ll still need to pay back the difference on what you paid for the home and what it was sold for. There are not many lenders who accept this arrangement.

Payment forbearance is when you have a bit of equity in your home, which allows you to rework the loan in order for lower monthly payment for a specific amount of time. Any past due amount could be added into a new loan.

Sell the home is an option for people who just don’t want the home any longer or have problems so serious that it cannot be resolved. The idea with selling the home is to sell it while paying off the mortgage balance and any back debt owed, keeping the home from going into foreclosure.

Four Questions Lenders Tend To Ask

 Question 1 – Why did you fall behind?

All too often good people get into bad troubles. Make sure you’re honest about why you fell behind such as losing your job, an unexpected medical expense, higher homeowners’ insurance and taxes, etc. Don’t embellish.
 
Question 2 – What is your current income?

Make sure you include all income that comes into your home; don’t forget to add in your savings and benefits.
 
Question 3 – What are your other debt obligations/expenses?

Make sure to list only the essential financial obligations such as student loans, child support, utilities, credit payments, etc.

Question 4 – What are you doing to fix the issue?

Make sure you brainstorm some ideas to help you fix your problems for the short-term and long-term. Be truthful if you think the situation is hopeless. Since foreclosure can ruin your credit for at least 10 years, it doesn’t hurt to explore all the possibilities.