Sacramento Mutual Housing Association
916.453.8400

Foreclosure has become a serious problem nationally, statewide, and in the Sacramento area. We estimate that a staggering one million families will face foreclosure this year. Not only does foreclosure have a devastating financial impact on families, but it also carries significant consequences for an entire community. Just one or two boarded-up homes can send a residential block into a downward spiral, driving down property values and leading to increased crime, rundown schools, and flagging economic growth.

Not being able to pay the mortgage can be one of the scariest situations a person faces. Studies show that, embarrassed about their situation and unsure about what to do, roughly 50 percent of delinquent borrowers avoid contact with their lender, hoping the problem will go away. Instead of acting on quality advice, they fall deeper into the hole and increase their chances of foreclosing. If these homeowners could receive solid financial advice and help, tens of thousands of them could avoid foreclosure.

Interested in helping SMHA's local homeownership preservation efforts? Your contributions can make a difference.

Advice For Homeowners

Foreclosure affects more than just you -- it impacts your entire family. Approximately 1 million families will face losing their homes this year. Call today for real help and guidance because nothing is worse than doing nothing. 1.888.995.HOPE or call 916.332.1037 for help in Russian, Vietnamese, Hmong or Mien.

Read here about real people who have faced mortgage issues and were able to overcome them with the assistance of the 888.995.HOPE hotline and the NeighborWorks network.

Click here to read Desiree's story | Click here to read Veronica's story

How can I avoid mortgage trouble?

1. Prioritize your expenses. Prioritize your bills and pay the ones that are most necessary for the well-being of you and your family, such as shelter, food, and utilities.
2. Protect your credit score. When you are experiencing a financial challenge, remember that making late payments or skipping them can seriously affect your credit score.
3. Beware of scams. Beware of predatory lenders, pre-approved loan offers and phony counseling agencies. Homeowners facing financial troubles are especially vulnerable because they are desperate to find a solution to their problems. Legitimate counseling agencies will offer their programs for free or for a small administrative charge. Check with a lawyer or your mortgage company before signing anything involving your home. Do not sign anything you do not understand. The U.S. Department of Housing and Urban Development has more information about avoiding predatory lending on their website, http://www.hud.gov.

1. Call for help - it's the most important thing you can do. More than half of homeowners facing foreclosure did not call for help when they fell behind in their mortgage payments.
2. Don't make a bad situation worse. Ignoring your situation won't make it go away. Take the steps provided here to protect your home, your family and your credit rating.
3. Notify the bank as soon as you know your payment will be late. Calling when you are 30 or 60 days late is better than calling when you are 120 days late. You still have some options. You must put your pride on hold if you're truly serious about stopping the foreclosure process. Remember that foreclosure is not in the best interest of lenders - lenders report that it costs up to $50,000 or almost half the loan balance each time they write off a foreclosure.
4. Work it out. Depending on the situation, the lender may lower the interest rate, lower the borrower's monthly payment, or enter into a repayment agreement for missed payments.

Free from NeighborWorks® America:

• How to Avoid Foreclosure and Protect Home Equity (PDF)
• 10 Secrets Every Homebuyer Should Know (PDF)
• 10 Secretos Que Todo Propietario Debe Saber (PDF)

Helpful Web Sites:

• http://www.thebeehive.org
• http://www.yourhome.ca.gov
• http://www.hud.gov/foreclosure/index.cfm
• http://www.shra.org/Content/Housing/Foreclosure.htm
• http://www.fha.gov/foreclosure/index.cfm#3f

SMHA Programs for Local Homeowners

Because the foreclosure crisis has escalated and now threatens the stability of both families and communities, SMHA has expanded our services to include a significant focus on foreclosure intervention activities. As a NeighborWorks® organization we are in a strong position to provide the highest quality services through support and resources from the NeighborWorks® America network. In addition, we have long-standing positive relationships with the Sacramento HUD field office, the California Reinvestment Coalition, and Legal Services of Northern California. As a result of our work in financial education and promotion of homeownership through Individual Development Accounts over the past seven years, we have many partners in the banking and financial industry who support our work with funding, advice and volunteer time.

To combat the growing crisis - and to help desperate homeowners - the Homeownership Preservation Foundation and NeighborWorks® America have established a national hotline for homeowners facing default or foreclosure.

Bringing the hotline to local residents, SMHA has partnered with California State Assembly member Dave Jones (D-Sacramento) to promote the hotline and help homeowners access resources to save their homes.

"We have to address this crisis for new homeowners in Sacramento head-on," said Assemblymember Jones. "Sacramento has an exceptional opportunity to take advantage of the skilled counselors available at the national hotline."

The hotline is staffed with HUD-certified (U.S. Department of Housing and Urban Development) housing counselors and takes calls 24 hours a day, seven days a week. Hotline counselors can help homeowners contact their lenders or navigate the often complex resolution process.

SMHA's intervention initiatives include an emphasis on limited English speaking individuals, including the underserved Russian and Southeast Asian communities. We partner with other organizations in the Sacramento area to reach key sub-groups whose language barriers have not otherwise been addressed. Current partners include the following organizations:

• Asian Resources, Inc.
• SouthEast Asian Assistance Center
• Sacramento Lao Family Community
• United Lu Mien
• Opening Doors

By offering counselors or interpreters who can speak directly to Russian , Vietnamese, Hmong and Mien homeowners, SMHA addresses both the language and cultural nuances necessary to create greater understanding of how families can avoid foreclosure. Our focus also includes development of printed materials available in a variety of languages and distributed in communities where our strong existing relationships allow us to reach a maximum number of non-English speakers who are at risk.

SMHA is actively involved with the Sacramento Regional Partners in Homeowership to develop collaborative solutions to the foreclosure crisis in our community. This group meets bi-monthly and includes local housing counseling agencies, representatives from city, county and federal government, lenders and realtors.