For one Rifle couple, it came down to the wire. They were a day away from a foreclosure sale on their home. Bids were already coming in, even as they were trying to postpone the sale and make their payments.
“That same day I got an e-mail from the loan servicer. The sale date has been postponed. Thirty days,” said Yanina Toranza-Viera, Valley Housing Partners program director for Garfield Mountain Regional Housing Corp.
It wasn’t long, but it was enough to let them refinance. The only reason they got another chance, she believes, was because she and others intervened and created a payment plan to satisfy the lender and keep the couple in their home.
“The final word comes from [the lenders], not you,” she said, “and nothing guarantees if you work hard for this, you’ll be able to save your house.”
Toranza-Viera works with prospective homeowners trying to afford a home in this inflated housing market. When they run into trouble, she also works with people trying to save their homes from foreclosure.
The key, she said, is to act quickly, as soon as homeowners see trouble on the horizon, and to work with a housing counselor to develop a plan. Once a sale is imminent, it’s too late.
“Nothing — absolutely nothing — can be done if you call for help at the last minute,” she said.
Carbondale mortgage broker Drew Sakson agrees. He found himself facing foreclosure after missing two payments. Even quick action ended up dragging on and on, he said, as it became impossible to reach anyone with the lender.
“Be proactive early if you’re getting in trouble,” Sakson said. “Be extremely proactive, and be very early. If you can see that you’re not going to be able to make a payment, call them first.”
Foreclosure can be daunting, but help is available to avoid it. Toranza-Viera points to a federal loan, FHA Secure, which lets borrowers who are late on their payments refinance. Some borrowers on adjustable-rate mortgages also can use it to refinance into a 30-year fixed loan.
“If it is because of hardship, you have a lot of chances,” she said. “That’s the main purpose of this loan: to protect families who have gone through hardship.”
Counselors can also work with homeowners to negotiate with lenders, set up payment plans and work out budgets to help them stay afloat. It’s a grueling process, she said, but it can save their homes.
Lenders are also increasingly willing to forego some of the value of the loan if it means avoiding taking back the house. That can prove expensive for lenders, Sakson said, and sometimes, borrowers leave the home nearly destroyed before handing it over.
“You’re better off trying to make a deal and put somebody into the house and allowing them to get out with some dignity and respect,” he said.
Valley Housing Partners tries to prevent the problem by educating prospective home buyers about what they can afford before they try to buy a home. It holds regular workshops, in both English and Spanish, and offers shorter programs to talk to businesses and organizations about home buying.
For more information, contact them at 384-6447.
dfrey@aspendailynews.com
