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The Loss Mitigation Relief Options include the following:
Special Forbearance
SCSHFDA may be able to arrange a repayment plan based on your financial situation. You must also furnish information to us to show that you would be able to meet the requirements of the new payment plan. This will include employment verification, authority to conduct a credit report, a financial report and income verification. Details may be found at the website listed below or by calling SCSHFDA at 800-432-5007.
Partial Claim
SCSHFDA may be able to work with you to obtain a one-time payment from the FHA Insurance fund to bring your mortgage current.
You may qualify if:
• Your loan is at least 4 months delinquent but no more than 12 months delinquent.
• You are able to begin making full mortgage payments. When SCSHFDA files a Partial Claim, the U.S. Department of Housing and Development (HUD) will pay SCSHFDA the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full. The Promissory Note is interest-free and is due when you pay off the first mortgage or when you sell the property.
Pre-foreclosure sale (short-sale)
This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan.
You may qualify if:
• The loan is at least 2 months delinquent.
• You are able to sell your house within 3 to 5 months.
• A new appraisal (that SCSHFDA will obtain) shows that the value of your home meets HUD program guidelines.
Deed-in-lieu of foreclosure
As a last resort, you may be able to voluntarily “give back” your property to SCSHFDA. This will not save your house, but it is not as damaging to your credit rating as a foreclosure.
You may qualify if:
• You are in default and do not qualify for any of the other options.
• Your attempts at selling the house before foreclosure were unsuccessful.
• You do not have another FHA mortgage in default.
Loan Modification
Loan modification is not an option with our mortgages. The reason for this lies in the fundamental differences in the way the Authority operates versus a residential lender.
The money used to fund our loans comes from the sale of bonds sold to investors.The money generated by the sales of these bonds is then used to make loans to first-time home buyers at low, competitive interest rates.
The interest rate we charge is the lowest rate we can responsibly charge while maintaining our credit rating, meeting the obligation to our investors and maintaining our day-to-day operating expenses so that we can continue making low cost mortgage loans well in the future.
Unlike some residential lenders, the Authority has never used sub-prime, adjustable rate or other “exotic” mortgages. Our mortgages are always made at low, competitive interest rates that are fixed for the life of the loan. In addition we are able to offer down payment assistance (currently $5000) to help with the expenses associated with the actual home purchase.
Lowering the interest rate, reducing principal or refinancing would quickly jeopardize our ability to provide affordable mortgages to the people of South Carolina.
Debt Restructuring Services
We have had inquiries about companies and organizations that offer to negotiate mortgage refinancing on behalf of borrowers. Many homeowners want to know if these groups can really cut their interest rate and reduce the principal of their loan. We do not have any first hand knowledge of these groups, their successes or how they operate. For the reasons stated above, no group or company is able to negotiate a restructuring of a South Carolina State Housing Finance and Development Authority loan on your behalf.
Your mortgage with us is different from a mortgage with a bank. Your mortgage was made with the lowest possible rate available, fixed for 30 years. We have no ability to lower the rate, reduce the principal or refinance.
If you choose to seek help from a third party negotiator, before you turn over any records or sign anything, ask the following:
• How do you insure that my information is kept confidential?
• Will the negotiation you do on my behalf be reported to any rating agencies or potentially affect my credit rating adversely?
• What exactly are my fees and responsibilities if you negotiate on my behalf?
Also, keep in contact with SCSHFDA. Do not assume a company is negotiating on your behalf.
Remember, the South Carolina State Housing Finance and Development Authority will work with you at no cost. You should never pay a fee for a company to negotiate a work out plan.
We want to help you keep your home
The most important rule and your best chance to see a positive outcome during a period of financial difficulty is to contact us as soon as possible. Please call us at (803) 896-9521 or toll free at (800) 476-0412. We want to work with you to explore all options and alternatives to foreclosure. Never assume that your situation is hopeless and disregard the letters and calls from the Authority.
Additional resources are available on our website at http://www.schousing.com/Homeowners/Homeownership_Retention
Other Resources
If you or someone you know is having trouble with a mortgage from a lender other than the SCSHFDA, help is available through The Homeownership Resource Center a division of Family Services, Inc. Call 1-888-320-0350 or visit www.ForeclosureHelpforSC.org
Equal Housing Opportunity