With unexpected circumstances, increase in cost of living and the turbulent economy, more and more families are finding themselves unable to manage their monthly income. Cities across the country are taking proactive measures to educate their citizens on foreclosure prevention resources so that more families stay in their homes and their communities continue to flourish and grow.

The City of Carson is committed to helping Carson residents navigate through the overwhelming information and provide reliable resources that can assist our community through these challenging times.

The Carson Foreclosure Prevention Awareness Initiative (CFPAI) is a campaign created to raise awareness of existing options for those at risk of foreclosure, but also highlights tips and smart decisions that may help prevent  foreclosure in the future.

•  Avoid Foreclosure
•  Understand Possible Solutions to Save Your Home
•  Beware of Scams
•  Know Your Rights
•  U.S. Federal Programs
•  If You Can’t Save Your Home
•  File a Complaint
•  Find Free local HUD Certified Foreclosure Prevention Services
•  Find FREE Local Foreclosure Prevention Workshop
•  Sample of Hardship Letter
•  Glossary Housing Terms

Avoid Foreclosure

If you are having difficulty paying your mortgage on time or foresee difficulty in the future:

1. DO NOT ignore letters from your lender.
2. Contact your mortgage lender directly – IMMEDIATELY. Be Prepared
3. Talk to a HUD certified foreclosure avoidance counselor to understand your options.
4. DO NOT stop making payments to your lender.
5. Avoid “foreclosure consultants” or “foreclosure prevention companies” that make big promises with up-front fees.

Understand Possible Solutions to Save Your Home

The moment you realize you cannot make your mortgage payment is the moment you should contact your lender. Educate yourself on options available for your circumstance. There are various solutions that can assist you:

• Government programs
• Mortgage modifications

Beware of Scams

 Private firms frequently compile and sell lists of foreclosed properties and borrowers who have received a Notice of Default (NOD). With these lists, scammers will target persons by mail, telephone, email and/or various media outlets.
Beware of the Top 10 “Red Flag” statements made by loan services and/or “foreclosure consultants”:

1. “Pay us $1000. We will save your home”
2. “Trust me! I can guarantee I will save your home”
3. “Sign over your title to us and you can stay in your home while you pay off your debt”
4. “Stop paying your mortgage, we will handle it directly”
5. “Ignore your lender. We will deal directly with them to save you frustration, time and energy. We can speak their language.”
6. “Your lender never had legal authority to make your loan, so you don’t need to pay it back”
7. Uses government affiliation to persuade credibility.
8. Pressures you to go with their offer or file bankruptcy without describing solutions that fits your specific situation.
9. Claims to be honest because he/she is the same religion, race or ethnicity as you.
10. Any offer that sounds too good to be true.

Note: Tips provided by Department of Consumer Services (DCA)
 

Know Your Rights

The need for prevention legislation is critical to address the problem of increasing foreclosures in California.

• SB 1137 – Requires lenders to contact homeowners and explore options before initiating the foreclosure process.
• SB X2 7 “California Foreclosure Prevention Act” (CFPA) establishes a ninety-day moratorium on foreclosure for any lender that does not have an aggressive program for affordable loan modifications.
• Civil Code Section 2945 “California Foreclosure Consultant Act” regulates “foreclosure consultants” and prohibits them from collecting any advance fees for mortgage modification services if a Notice of Default has been recorded against their property.

For more information and recent updates on California foreclosure legislation please visit: Official California Legislative Information
 

U.S. Federal Programs 

• The Obama Administration announced in February 2009, the Making Home Affordable program. The program provides resources to homeowners who are making good-faith effort to make their mortgage payments.
• HOPE NOW is an alliance that maximizes outreach efforts to help homeowners stay in their homes through a coordinated plan that reaches as many homeowners as possible.

If You Can’t Save Your Home

Seek alternative options right away:

• Redemption Period (Last Chance) is a period after your home has already been sold at a foreclosure sale when you can still reclaim your home. You will need to pay the outstanding mortgage balance and all costs incurred during the foreclosure process.
• Rental Resource. Find affordable rentals and special needs housing. Get Help
• Homeless Services: People Assisting the Homeless Program (PATH) is a regional agency providing services to homeless individuals throughout Los Angeles County.
  Phone (323)644.2206
   

File a Complaint

If homeowners feel their lender, attorney, consultant and/or realtor have misrepresented and/or violated any of their consumer rights, file a complaint with the appropriate agency:

• California Department of Real Estate: Consumer protection agency for consumers who want to file a complaint against a real estate broker.
  LA Office Complaint Line (213) 620-2072
   
• California Attorney General Public Inquiry Unit: Serves as the Attorney General’s central clearinghouse for inquiries and consumer complaints.
  (800) 952-5225
   
• Federal Trade Commission: Nation’s consumer protection agency. Collects complaints about companies, business practices, identity theft and episodes of violence in the media.
   (877) FTC-HELP (1-877-382-4357)
   
• State Bar of California: Investigates and prosecutes complaints against lawyers
  (800) 843-9053

Find Free local HUD Certified Foreclosure Prevention Services

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Glossary

Freddie Mac Housing Terminology

Legal Disclaimer

The information contained in this web site is provided for personal, noncommercial, and informational purposes only. The information is not intended as legal advice nor does it necessarily reflect the opinion of the City of Carson, its elected or appointed public officials, employees, officers, agents, or any of its attorneys, consultants, or vendors. While the City of Carson endeavors to update the information in this web site periodically, additional facts or future developments may affect such information and no warrantee or guarantee is given (either express or implied) that the information is correct, complete, or up-to-date. The information on this web site is not legal advice and is neither intended to constitute, nor does viewing of the content of this web page constitute, the proffering or giving of legal advice. Seek the advice of an attorney and/or a HUD-certified counselor before acting or relying upon any information in this web site.