Home Foreclosure and Mortgage Delinquency can occur as a result of a reduction in pay, job layoff, illness, death of an income provider, care of family members or other reasons. Foreclosure Prevention/Mortgage Delinquency Counseling from the ULK provides clients who are delinquent on their mortgage or facing foreclosure, through education and advocacy, the opportunity to bring their mortgage payments current and/or save their home.

A ULK housing counselor will work on behalf of the client with their mortgage company (or the mortgage company’s attorney) to find a workable solution for both parties. The counsel and advocacy of a third-party HUD-approved counselor is often a welcome addition to the negotiation process for the mortgage company, and provides a sense of relief to the client. The ULK housing counselor creates a detailed budget for the client to use, based upon financial weaknesses identified in a confidential counseling session. After a detailed budget has been drafted, the housing counselor will be able to determine the best course of action, and work with the client and mortgage company toward a realistic and beneficial solution for all involved parties.

Counselors will typically work with you to achieve the following:

1. Immediate Actions
• Loss Mitigation
• Forbearance
• Loan Modification
• Partial Claim
• Deed in Lieu
• Pre-Foreclosure Sale
• Re-Finance
• Home Equity Conversion Mortgage
2. Improved Money Management
• Use of a budget to plan spending for each pay period
• Use of financial journals
• Saving for periodic expenses
3. Balanced Budget
• Outline necessary actions to reduce expenses
• Review tax withholding status
• Determine ways to increase income
• Sale of Assets
• Savings & Investments
• Review child support payments
• Extend auto payments/sell auto
• Improving Credit Status
• Stop use of credit cards
• Keep utilization rate below 50%
• Write creditors and explain financial situation
4. Additional Recommendations
• Seek legal advice from an attorney
• Referrals

For counseling or inquires, call (316) 262-2463 or e-mail your questions to the department.