HOMEOWNER RESOURCES

Get savvy about the housing market

Being a part of the housing market can provide great possibilities for both families and communities.  It’s important to be educated about process of buying and owning a home. Housing counselors can provide information on buying a home, renting, defaults, forbearances, foreclosures, and credit issues. 

As a Homeowner more questions can arise when you are faced with personal and finical challenges that may jeopardizes your home. It is important to be aware of the resources available to help you understand your mortgage and prevent foreclosures.

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Tips for overcoming financial instability

Financial emergencies can happen to anyone and at the most unexpected times. You do not have to face this hardship alone, there are resources available to assist a variety hardships. 

Below you will find a simple overview of basic tips to assist with overcoming your financial hardship. 

1. Food insecurity

Food insecurity can be one of the most challenging aspects of financial hardship because its the one thing we cannot live without.  There are great organizations with amazing people assisting in this area.  

Nationwide you can find the the federal government offers multiple food assistance programs through the U.S. Department of Agriculture (USDA) and other agencies, including:

• The Supplemental Nutrition Assistance Program (SNAP), which provides families in need with a pre-loaded debit card that can be used to purchase food.
• Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) provides food and other assistance to pregnant women, new mothers and certain children up to age five.
• Summer Electronic Benefit Transfer Program for Children (Summer EBT), which will provide funds for families with school-aged children (officially launching in summer 2024).
• Food and nutrition programs for seniors, including the Senior Farmers’ Market Nutrition Program (SFMNP). 
• Locally, you might have access to a variety of food banks that supply food to those in need. You can visit Feeding America to find your closest and best option. 

2. Loss or reduction of income

Job instability or income reduction can cause great stress in uncertainty. There are many steps you can take to get through this tough period, starting with applying for unemployment. Even if you’re unsure if you’re eligible, you should take this step ASAP, because the processing times can be long before you receive a payment.

Next, evaluate your budget and make a priority list: 

• Shelter
• Food
• Utilities
• Essential medical care
• Transportation (if needed to get to-and-from work)

Begin cost cutting as early as possible so you can maintain necessities. Contact your utility companies, creditors and student loan servicers right away to make them aware of your hardship and  ask if you can go on a special payment plan. Additionally, read through your financial statements to see if there are any subscriptions or recurring charges you can cancel.

3.Covering mortgage or rent payments

Much like with your creditors, it’s best to inform your landlord or mortgage lender of your situation immediately. Call them to see what assistance is available and ask how you can apply. If you do not receive any assistance directly you can reach out to a housing counselor. 

4. Dealing with credit score damage

Building good credit take time and consistency. There’s a chance you’ll have to make decisions that keep you financially afloat but cause your credit scores drop. For example, you’ll want to stay current on your mortgage payments in order to keep your home, even if you can’t afford to cover your credit card payments.

As we mentioned above, you should always inform your creditors and lenders of your hardship immediately. Doing so can potentially open up options, delay eviction or foreclosure and help minimize late fees and credit damage. Once your financial hardship is over, you can take steps to rebuild your credit scores. For example:

• Open a secured credit card, which is a card you can qualify for by making a refundable deposit, even if your credit scores are low.
• Take out a small credit-builder loan from your local credit union. 
• Find out a family member or spouse has good credit, and become an authorized user on one or more of their credit cards. 
• For more personalized tips reach out to credit counselor.

5. Running out of savings,

An emergency savings fund exists to be used, but it can be scary to see the money disappear. If your emergency savings is non-existent, you might be tempted to make high-risk choices in order to cover your needs, such as taking out a 401(K) loan, car title loan or paycheck advance.

But all of these options put you at risk of prolonging your financial emergency, since you have to pay back high fees and high interest on these loans. Instead of making a choice that creates more problems down the line, consider these safer options for covering your emergency expenses:

• Borrow money from friends or family
• Rent out a room in your home 
• Sell old electronics, a vehicle, jewelry or other nonessential housing items
• See if your credit union offers emergency loans
• For service members and veterans, check to see if your military aid society can offer you a grant or loan
• Once you’re in a more stable position, you’ll want to work on replenishing your emergency savings fund. One way to jump-start the fund is to stick to your emergency budget for a few extra months (or even longer) after things get stable, and put your extra cash into savings.

Avoiding housing scams 

There has been a rise in housing related scams so its important to be diligent and know what to look for. Savvy scammers can target you various demographics with information that may feel specific to you. It possible you hear promises such as guaranteeing to “save” your home or lower your mortgage or pretending to be your mortgage servicer which they are not.

• Beware of people who pressure you to sign papers immediately or who try to convince you that they can “save” your home if you sign of transfer over the deed to your house.
• Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
• Never make a mortgage payment to anyone other than your mortgage company without their approval.
• Ask direct questions – for example: how did you get my information? Can I see you business license or credentials? 
• Taking advantage under pressure – Make sure to read and understand your options before taking action.