Foreclosure Prevention

Are you worried about keeping up with your monthly mortgage payments? Were you surprised by the terms of your loan after you closed your mortgage? MassHousing's Home Saver program may be able to help you avoid losing your home through foreclosure. Home Saver is privately financed; no taxpayer dollars are used for the program.

What it is

Home Saver is a counseling and loan program that helps borrowers who are unable to repay their mortgage. It is a proactive step that home owners take before their mortgage becomes unaffordable, and before foreclosure becomes a real possibility. Home Saver includes a mandatory counseling component and a refinancing of your existing loan.

Who it's for

Home Saver assists home owners with modest incomes who are burdened by an unaffordable loan. Given the loan's terms and the borrower's income, assets, obligations and other considerations, there could have been no reasonable expectation that the loan could be repaid.

Who it's not for

The Home Saver program is not available to home owners who

• Are already in foreclosure, or are more than 30 days delinquent
• Own more than one property

Eligibility

To be considered for MassHousing's Home Saver program, you must demonstrate that you

• Are employed with verifiable income and can afford the new monthly mortgage payment
• Have a minimum credit score of 560 for a single-family home or condominium, 580 for a 2-family home, or 620 for a 3- or 4-family home
• Meet income and loan limit restrictions

Other restrictions may apply. Eligibility will be determined as part of Home Saver's mandatory counseling component.

How it Works

If you meet the criteria described above, follow the steps below to apply for the Home Saver program:

1. Contact the Homeownership Preservation Foundation at 888.995.HOPE. Counselors will evaluate your situation and direct you accordingly. Learn what you need and what to expect when contacting the HOPE Hotline.
2. If appropriate, you will be referred to an approved local counseling agency. Counseling is a mandatory part of the Home Saver program, and includes a review of your mortgage documents and a suitability assessment.
3. Once you have completed counseling, you will be provided with a list of participating lenders, who will take your loan application.

You may also contact a participating lender directly. You will still be required to complete a mandatory counseling component to qualify for the Home Saver program.

Next Steps

No matter if you meet the eligibility requirements stated above, home owners worried about keeping up with mortgage payments and those at risk of foreclosure can take the following steps:

• Contact your lender to discuss revising your payments. Many people who end up in foreclosure never contact their lender about resolving the problem.
• Call the Homeownership Preservation Foundation at 888.995.HOPE. Staff members can provide unbiased advice on how you can avoid foreclosure. Learn what you need and what to expect when contacting the HOPE Hotline.
• Contact your local NeighborWorks organization for support and assistance.

Remember, if you have fallen behind on your payments, there are alternatives to foreclosure.