Homeownership Preservation Initiative Program Chicago

If you are struggling and need help this is the program I wrote about earlier that you can contact through the city's non-emergency 311 program.

Homeownership Preservation Initiative Partnership
For more information, contact: Michael van Zalingen
(773) 329-4010

Launched in 2003, Chicago’s Homeownership Preservation Initiative (HOPI) program, under the city’s Neighborhood Housing Services department, is a partnership working to help homeowners avoid foreclosure.

Chicago homeowners at risk of foreclosure can contact HOPI through a 311 hotline, through community-based partner organizations, or be referred by their lenders.

HOPI utilizes several strategies to assist homeowners: face-to-face counseling along with loans to bring borrowers current or help with property repairs; phone-based foreclosure services through the 311 hotline; and partnerships with loan servicers to hold neighborhood-based mortgage workshops.

More information is available online at www.nhschicago.org.

5 Steps you can take early in the foreclosure process.

1. Call your lender.This is the single most important thing you can do. Lenders want borrowers, not properties – they would prefer to see you keep your home. Most will work with you while you get back on your feet.
2. Be honest with your lender.Different situations require different solutions. It will matter to your lender to know if your financial problems are temporary, for example, due to an injury that puts you out of work for a few months, or are more long term, such as a cut in pay or a layoff.
3. Know what you owe.Have a clear picture of what your debts are and make your mortgage the priority if you have to make choices. Debt collectors can be very aggressive, but if you can't pay all your debts, make sure your home is protected from foreclosure by paying your mortgage.
4. Talk to a housing counselor.A non-profit housing counseling agency may be able to help you restructure your bills so that you have an easier time paying them. Additionally, they can help you create a budget that suits your specific needs.
5. Contact a housing non-profit.A housing non-profit can give you valuable advice. The HOPE National helpline, 888-995-HOPE, is dedicated to helping homeowners facing foreclosure 24 hours every day. Spanish – speaking counselors are available.

How will a short sale affect your credit?

Many people think…”That if I’m going to lose my house and I’ve messed my credit up so bad what’s the point of trying to do a short sale? I’ll just let the bank have it!”
Well the answer to that is a possible difference of an extra 200 points off your credit score if you have a foreclosure or deed in lieu versus a short sale on your credit history. A short sale will also allow you to bounce back and qualify for a mortgage a lot sooner than a foreclosure or deed in lieu. A foreclosure will take 280 to 300 points off your credit score! That means that if you start off with a credit score of 650 then you could end up with a score of 350!!!! Ouch! A short sale typically takes off 80-100 points. That means that the same 650 credit score will be taken down to 550. A huge difference! You will be more quickly able to qualify again for a mortgage, usually within 18-24 months after a short sale. In the case of a foreclosure it will take 24-36 months before you may qualify again.
So, what’s in it for you is a faster recovery and getting on with your life sooner!
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