Residents Gain Helpful Advice On Avoiding Foreclosure

The number of homes in foreclosure in South Carolina is rising. And nearly 7% of homeowners are behind on a payment, according to the Mortgage Bankers Association. The Greenville County Human Relations Commission and a panel of experts held a conference today to help homeowners avoid losing their homes.

Brenda Alexander is one of many homeowners on the verge of foreclosure who came for advice to stop it. Said Alexander in tears, "It's a hardship, you don't sleep at night, you worry all the time."

Here's what the foreclosure experts and attorneys recommended:

-Tell your lender when you can't make a payment and don't avoid their phone calls or letters. Said Rick Miller, Foreclosure Manager for BB&T, "If a hardship is legitimate, decrease in income or an increase in expenses, a lender will bend over backwards to try to resolve the problem. Again, we don't want your house."

-Write the lender a hardship letter describing your situation. Prepare to show them pay stubs, bank statements and a one-page financial statement to document your claim.

-Call HUD for a referral to a HUD approved financial counselor to help you through the situation.

-Your lender can either put you on a repayment plan, a foreberance plan of partial payments, or write a loan modification. Said Miller, "A loan modification takes all your past due payments, capitalizes them into your loan, and you get a reduce payment and reduced interest rate."

-If you're 90 days late in payments, Project Lifeline offers you an extra 30 days to pay.

-If none of those options works for you, your lender can establish a liquidation plan to sell your home or a deed in lieu, where you'll sign the home over to the bank.

-Once you're served with foreclosure papers, find an attorney and file a written response in court within 30 days. Said attorney Sue Berkowitz with Appleseed Legal Justice Center, "If you can't find a lawyer or afford a lawyer, file your answer in court yourself and get it served. Because once you waive that right you're in a whole different position and lose your legal rights."

-If necessary, filing for bankruptcy can stop a foreclosure.

-And finally, avoid foreclosure rescue scams. Check out any offers to "save" your home with the Department of Consumer Affairs or the Better Business Bureau.

Here are a number of foreclosure assistance resources:

Greenville County Human Relations Commission: