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LEDC--DC Office
2316 18th St NW
Washington, DC 20009
1-866-977-LEDC (5332)
Fax: (202) 588-5204
Fax (Housing): 202-265-0454

 

LEDC--Maryland Office
2405 Price Avenue 
Wheaton, MD 20902
1-866-977-LEDC (5332)

Foreclosure Prevention

How can LEDC help me keep my home?
The sooner a family in financial crisis comes to LEDC for foreclosure intervention counseling, the greater the options that are available. Early intervention is critical to resolving most foreclosure situations. The counselor’s role in the foreclosure counseling process is as follows:

  • Help the client sort through their financial situation and get a realistic picture of where the homeowner stands financially
  • Provide advice and help in preparing a financial crisis budget. 
  • Explain the foreclosure timeline and the need for action
  • Remind the client of the goal that they are working towards and the steps that the client will need to take to make everything possible.
  • Understand the servicer’s perspective, and make sure the servicer knows the counselor understands.
  • Create a partnership atmosphere in order to negotiate with servicer for a positive outcome for the client
What are the different options that I may have?

Forbearance Agreement

An agreement to suspend or reduce normal monthly payments for fixed periods of time. At the end of this period the client must cure the delinquency through a lump sum payment or long-term repayment plan

Loan ModificationWritten agreement that permanently changes one or more of the original terms of the loan, such as a rate payment amount, maturity date, or the amount of the unpaid principal balance.
Reverse Mortgage (HECM)A type of loan for Seniors over the age of 62. Senior citizens that have a significant amount of equity in their home may qualify for this type of product.
Short SaleThe lender agrees to accept the proceeds of the sale as full satisfaction of the borrower’s debt.
Deed-in-LieuWhen a borrower voluntarily conveys title to the lender in exchange for a discharge of the delinquent debt.
ForeclosureThree types of foreclosures may be initiated at this time: judicial, power of sale, and strict foreclosure. All types of foreclosure require public notices to be issued and all parties to be notified regarding the proceedings. Once properties are sold through an auction, families have a small amount of time to find a new place to live and move out before the sheriff issues an eviction.
Repayment PlanWritten agreement where the client agrees to cure the delinquency by adding an additional amount to their monthly mortgage payment until the loan becomes current. 

If you think your home might be at risk of getting foreclosed upon take action right away! Call LEDC and ask to speak with a Housing Counselor in DC at 202-540-7434. You will be asked to bring documentation to your appointment. Click here to see the documents you should plan on bringing.