HUD Guidelines

1. What Happens When I Miss My Mortgage Payments?
Foreclosure may occur. This is the legal means that your lender can use to repossess (take over) your home. When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, a deficiency judgment could be pursued. If that happens, you not only lose your home, you also would owe HUD an additional amount.
Both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in the future. So you should avoid foreclosure if possible.

2. What Should I Do?
Stay in your home for now. You may not qualify for assistance if you abandon your property. Our foreclosure specialists will help work out a plan to help you stop foreclosure or avoid foreclosure that fits your financial circumstances. We will develop a strategy that you will approve to stop foreclosure and save your home. You will be very happy with our results when we are finished helping you avoid foreclosure.

3. What Are My Alternatives?
Special Forbearance. Your lender may be able to arrange a repayment plan based on your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses. You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan. You may qualify if:

  • Your loan is at least 4 months delinquent but no more than 12 months delinquent;
  • You are able to begin making full mortgage payments.
  • When your lender files a Partial Claim, the U.S. Department of Housing and Urban Development pays your lender the amount necessary to bring your mortgage current. You must execute a Promissory Note. A Lien will be placed on your property until the Promissory Note is paid in full.
  • The Promissory Note is interest-free and is due when you pay off the first mortgage or when you sell the property.
  • Pre-foreclosure sale. This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan.

Mortgage Modification. You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount.
 You may qualify if:

  • The loan is at least 2 months delinquent;
  • You are able to sell your house within 3 to 5 months; and
  • A new appraisal (that your lender will obtain) shows that the value of your home meets HUD program guidelines.
  • Deed-in-lieu of foreclosure. As a last resort, you may be able to voluntarily "give back" your property to the lender. This won't save your house, but it is not as damaging to your credit rating as a foreclosure.

Partial Claim. Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current.. You may qualify if:

  • you are in default and don't qualify for any of the other options;
  • your attempts at selling the house before foreclosure were unsuccessful; and
  • you don't have another FHA mortgage in default.

4. How Do I Know if I Qualify for Any of These Alternatives?
Your lender will determine if you qualify for any of the alternatives. As your counselors we will also help you determine which, if any, of these options may meet your needs and also assist you in interacting with your lender.

5. Should I Be Aware of Anything Else?
Yes. Beware of scams! Solutions that sound too simple or too good to be true usually are. If you're selling your home without professional guidance, beware of buyers who try to rush you through the process. Unfortunately, there are people who may try to take advantage of your financial difficulty. Be especially alert to the following:
Equity skimming. In this type of scam, a "buyer" approaches you, offering to get you out of financial trouble by promising to pay off your mortgage or give you a sum of money when the property is sold. The "buyer" may suggest that you move out quickly and deed the property to him or her. The "buyer" then collects rent for a time, does not make any mortgage payments, and allows the lender to foreclose. Remember, signing over your deed to someone else does not necessarily relieve you of your obligation on your loan.

6. Are There Any Precautions I Can Take?
Here are several precautions that should help you avoid being "taken" by a scam artist:

  • Don't sign any papers you don't fully understand.
  • Make sure you get all "promises" in writing.
  • Beware of any contract of sale of loan assumption where you are not formally released from liability for your mortgage debt.
  • Check with a lawyer or your mortgage company before entering into any deal involving your home.
  • If you're selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer. You can contact your state's Attorney General, the State Real Estate Commission, or the local District Attorney's Consumer Fraud Unit for this type of information.

Personal Credit and Debt Frequently Asked Questions

1. What happens after I enroll in the credit management program?
After enrolling in our program we will need current copies of your credit reports. We will request copies directly from the credit bureaus for you. Once you receive them, immediately forward them to us.

2. What is a Credit Score?
 Credit score is a rating used by a lender to help determine whether you qualify for a particular credit card, loan, or service. Based on information in your credit file, the credit reporting company analyzes your information using a complex mathematical model to yield your credit score. Most credit scores estimate the risk a company incurs by lending you money or providing you with a service -- specifically, the likelihood that you'll fail to make payments in the next two to three years. The higher the score, the less risk you represent. Your score is calculated by a mathematical equation that evaluates many types of information found in the credit file.

3. Where do I mail my credit reports?
 Every 45-60 days you will be receiving the updated results of our disputing process from all three credit bureaus. You need to forward the results to us immediately upon YOU receiving them. Do not wait to receive all three, send each one the minute you get it.

4. Can "Credit Management" be guaranteed?
 By law no one can guarantee that they can have items removed from your credit reports or give you a certain credit score. Anyone saying that is in violation of several laws and you should hold onto your wallet and run the other way from them. However, we do not want you to pay for our service if you do not see results. Therefore, we offer a warranty on our services. You will receive a portion of your money back if you don't see the appropriate progress with your case. Please see our contract for more details.

5. Does paying off past-due credit accounts neutralize their negative status?
  No. Many people believe that if they pay off an account the previous negative information is deleted from their credit reports. Once an account is late, sent to collection or charged off, the negative information will remain until the statutory amount of time has run (7 yrs normally, 10 yrs for a Bankruptcy). If you make a payment with 1 year left, you "restart the 7 year clock" and it starts ALL OVER again for another 7 years!

6. Will deleted credit accounts reappear?
 This is known as a "soft delete". Revisions to the law have made it much more difficult for the credit bureaus to put something on your report after it has already been removed. Does this happen occasionally? Yes. The credit bureaus very often make many mistakes. We will re-challenge this item with the weight of the previous deletion in our favor.

7. Can a bad credit account actually be deleted? 
  Yes, they most definitely can be if they are inaccurate, misleading, obsolete, or erroneous. We have seen deletions ranging from bankruptcies to late payments. That is why we back our work with a warranty. Federal Laws state that you should have a credit report that reflects your true credit file; any erroneous information must be removed if identified.

8. How often can I receive credit updates?
  By law, the credit bureaus have a "reasonable amount of time" to respond to our disputes, the FTC has passed the overseeing of the time frame to the Attorney General of each state. Texas considers 30-45 days reasonable. With our proven system, we can bypass many of the stall tactics used by the credit bureaus that the consumer doesn't understand due to their lack of knowledge of many Federal Laws. REMEMBER, if you don't know your rights, you don't have any.

9. Are there any hidden costs in your credit program(s)?
   There are absolutely NO hidden costs with our program. Generally, the credit bureaus do charge a fee for you to obtain your credit reports. We will show you how to obtain these reports for free for majority of our clients. As of January 1, 2004, revisions to the Fair Credit Reporting Act entitle every person in the United States to one free credit report per year from each of the three bureaus.

10. Can I restore my own credit profile?
  Yes, you can. You can also represent yourself in a court of law, fix your own transmission and do your own yard-work. We are a service company. Just as you are probably better at what you do than we would be, we are probably better at credit repair and are familiar with all the Federal Laws that govern it than you are. We offer experience, professional help at very affordable rates for your convenience and benefit.

11. I paid that credit account off. Why is it still on my credit report?
  Paying off an old collection does not make it go away. What this does do is "re-start" the 7 year clock that a derogatory has to remain on your credit file!  

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© 2008 One Call Debt Help, LLC All Rights Reserved. 14901 Quorum Drive, Suite 900 Dallas, TX 75254
Not all borrowers will qualify for a mortgage loan modification through One Call Debt Help, LLC. , and One Call Debt Help does not guarantee any specific modification results. Enrollment and modification results are subject to qualification and acceptance into the One Call Debt Help modification program. Actual results will vary based on individual situations and lenders, the current terms of your mortgage, and your ability to meet the terms of your modified mortgage. A loan modification is not a guarantee against foreclosure if you fail to meet the terms of your modified mortgage.