First of all, there are plenty of con-artists out there who present themselves as legitimate who will claim they will work with your lender to avoid foreclosure. Don’t be fooled!  Here are some tips to help you quickly distinguish between a con-artist and a HUD or MSHDA certified foreclosure counselor:

A Con-Artist will:

Ask you to pay them money to work with your lender to avoid foreclosure.  Legitimate HUD and MSHDA certified counselors will not.  They are FREE!

Con-Artists will also often:

• Guarantee you they can save you from foreclosure. Legitimate HUD and MSHDA certified counselors will never make this guarantee. They know it’s impossible to guarantee that you will be able to avoid foreclosure.
• Ask you to sign over the deed to your home claiming you will still be able to live there. Legitimate HUD and MSHDA certified counselors will never do this.
• Ask you to make out your mortgage payment to them instead of your lender under the guise of some arrangement that will save your home. Legitimate HUD and MSHDA certified counselors will never do this.

A legitimate FREE HUD or MSHDA certified foreclosure counselor will:

1)  Help you complete the paperwork you will need in order to work with your lender on avoiding foreclosure (See Mortgage Workout Pkt)  You can print these forms out and fill them out in advance of the meeting.  They will also ask you to bring the following:

• Income verification:  Pay stubs for past 30 days, Unemployment, Pension, Workers Comp, SS, DSH letter, foster care, child support statement from Friend of the Court, etc.
• List of Monthly Bills and Amounts
• (2) Most recent bank statements
• (2) Most recent tax returns
• Correspondences received from the lender and attorney
• Mortgage billing statement
• Recent property tax statement
• Payment history and escrow information from the lender
• Documentation related to the delinquency; layoff notice, doctor statement, divorce/separation. * Also please write a time line of events
• Copy of Bankruptcy documents and re-affirmation agreement (if applicable)
• Any existing payment arrangement or agreement.  

2)      Refer you to a free Legal Services Attorney if they or you suspect you have been legally wronged.

3)      Explain the various foreclosure prevention options available to you.

4)      Conduct a confidential assessment of your financial situation, analyzing your income and expenses to determine which foreclosure prevention options would best meet your needs.

5)      Call your lender on your behalf to discuss possible workout options.

6)      Assess your eligibility for federal, state and county foreclosure prevention programs

7)      Guide you to community resources available to you at this tough time.

Community Action Agency
 (800) 491-0004

Jackson Affordable Housing
(517) 788-4626

Community Action Agency
 (800) 438-1845

Community Action Agency
(800) 750-9300