How to Stop a Foreclosure in Wichita

If you default on your mortgage loan, the lender will initiate the legal process of repossessing the home, commonly referred to as foreclosure. If you're a homeowner on the verge of foreclosure in Wichita, Kansas, you have some options to keep your home if you qualify for assistance from the city, state and federal government. Taking immediate action can halt a foreclosure, even if the process has already started.

Instructions

1. Contact a foreclosure counselor. HUD-approved foreclosure prevention counselors are available to explain the foreclosure process and explore possible options. A variety of solutions are available to help you avoid foreclosure regardless of what stage of the foreclosure process you're in.

2. Refinance your home if you are struggling to make your mortgage payment but not delinquent; refinancing can lower your payment. The Making Home Affordable program offers flexible refinancing options to homeowners.

3. Request a forbearance from your lender. A forbearance temporarily suspends payments for a specified period of time. After the forbearance period ends, you will need to resume making your payment. The missed payments may be added to the loan or paid through a monthly repayment plan, depending on the agreement.

4. Visit the Laid-Off Workers Center. The center offers counseling and emergency food, housing and utility aid to local homeowners. Through the center, you can also receive help finding employment and applying for federal and state government assistance programs.

5. Apply for the HUD Emergency Homeowners' Loan Program. Homeowners who suffer a hardship, such as loss of employment, can receive up to $50,000 in the form of an interest-free loan. You can apply the loan towards a delinquent balance or use it to cover up to 24 months of mortgage payments.

6. Call your lender to review eligibility for the Home Affordable Modification Program if you are delinquent. A modification permanently adjusts the terms of the loan, including the interest rate and length of the loan. To qualify, the home must be your primary residence acquired prior to January 1, 2009 with a current payment greater than 31 percent of your gross monthly income.

7. Seek legal aid from Wichita Lawyers Care or another non-profit organization. A free or low cost attorney can discuss legal maneuvers to prevent foreclosure, such as filing bankruptcy. Award is generally based on income.

Tips & Warnings

• A foreclosure counselor can also negotiate with the lender to request a forbearance to suspend payments or a repayment plan to get you back on track. A counselor can also qualify you for federal assistance programs.

• In Kansas, the foreclosure process is carried out through the courts. Having legal representation in court can provide peace of mind. If you are a victim of mortgage or lending fraud, the attorney can address the issue in court to prevent the foreclosure. You can also file bankruptcy to automatically bring the foreclosure procedure to a halt. Immediately after filing a bankruptcy petition, the court issues an automatic stay to delay the foreclosure until the finalization of the bankruptcy. If you can afford to resume paying your mortgage, Chapter 13 bankruptcy can allow you to keep your home. Bankruptcy is a complex issue best left to an attorney.

• Consumer Credit Counseling Services is a non-profit counseling agency with locations throughout Wichita. You can search for a local agency by visiting the HUD website.

References

• "The Wichita Eagle"; Laid-Off Workers Center Taking Appointments for May; Rick Plumlee; April 2008
• RealtyTrac: Kansas Foreclosure Laws
• Kansas Attorney General: Assisting Consumers
• Making Home Affordable: Programs
• U.S. Department of Housing and Urban Development: Emergency Homeowners' Loan Program
• Making Home Affordable: Home Affordable Modification Program

Resources

• U.S. Attorney Legal Services: Free Legal Aid Kansas
• U.S. Department of Housing and Urban Development: Avoid Foreclosure Kansas