CARES Real Estate Sales

Consumers Should Use Caution When Considering Some Forms of Borrowing or Purchasing

2009-12-23T10:56:00.000-08:00

Interest and Fees Can Easily Outweigh the Benefits
The National Foundation for Credit Counseling

Desperate times often call for desperate measures, but sometimes those tactics can leave you worse off than where you began. This can be the case with people struggling to find money for holiday purchases.

Three areas to avoid when looking for extra money this holiday season:

Payday Loans - On the surface, getting the cash you need may seem worth it at any cost. But it’s that cost that can become financially back-breaking. To obtain a payday loan, you write a post-dated check for the amount of the loan plus any fees the lender tacks on. You then receive the amount of money you initially needed to borrow, promising to pay back that amount plus the fees. The term of the typical payday loan is one to two weeks, at which point the lender cashes your post-dated check. Most payday lenders will charge a certain dollar amount per $100 borrowed. For example, they may charge $15 for every $100 you borrow. Thus, if you needed $300 for two weeks until your next paycheck came in; your post-dated check would be for $345. What’s $45 when you desperately need $300? Here’s the catch…that $45 represents an Annual Percentage Rate of 390 percent. You wouldn’t dream of taking out any other type of loan with triple-digit interest. And, if this isn’t bad enough, many consumers cannot repay the loan at term, and end up rolling it over, thus adding on more fees and interest.

Pawn Shops – People can do several things at pawn shops. They can borrow money by putting up something of value as collateral, they can sell their merchandise outright, or they can buy the merchandise that is for sale at the shop. There are bargains at pawn shops, but only for those buying the merchandise, not for the sellers. Typically, the person pawning the merchandise receives a sum of money (usually nowhere near the true value of the item) which he or she agrees to repay with interest. If the loan is repaid by the end of the term, the merchandise is returned to the owner. If the loan is not repaid, the consumer can renew the loan, or the merchandise is forfeited. What’s the problem? Again, it’s the interest and fees, with APRs typically in the triple-digit range once everything is added in. Further, some studies show that only 60 percent of pawners end up reclaiming their merchandise, thus they have essentially sold an item for cents on the dollar, something they wouldn’t otherwise do.

Rent-to-Own – Everyone wants nice things, and if the family is coming over for the holidays, you may be tempted to spruce up your home. A quick trip to the furniture or electronics store could confirm that a new living room set or flat panel TV is out of your price range. Then you notice an ad for similar items with affordable monthly payments. It seems too good to be true, and it is. The problem once again lies in the interest and fees. For instance, if you bought a $200 item and agreed to make weekly payments of $15 for 78 weeks (basically one and one-half years), you’d end up paying $1,170 for that $200 item at an APR of 388 percent. Adding insult to injury, it is likely that you could have purchased the same item at a traditional store for a fraction of the overall cost.

For help managing household debt and/or living within your budget, contact Family Services, Inc.’s Consumer Credit Counseling division, 843.735.7802

SHOULD YOU BE SHOPPING THIS HOLIDAY SEASON?

2009-11-30T19:09:00.000-08:00

Holiday Spending Quiz Helps Consumers Evaluate Their Financial Situation

One in every 10 Americans is currently unemployed. Foreclosure filings were reported on close to one million properties in the third quarter of 2009. Personal savings, if it exists at all, is a fraction of what it should be. Terms on credit cards are rapidly changing, putting some consumers over the financial edge. And the biggest shopping day of the year, Black Friday, has just passed.

“Considering the volatility of the economy, consumers would be well-served to take a hard look at their personal financial situation and evaluate how to best approach the holiday season,” said Michaele Pena, Director of Consumer Credit Counseling Services (CCCS), a division of Family Services, Inc. “Self-inflicted financial pain that could have negative consequences for years to come is a gift to no one.”

Family Services, Inc. suggests that consumers take the following Holiday Spending Quiz to assess their current financial stability before they begin shopping: (answer true or false)

• There are arguments in my home about money.
• I sometimes hide my purchases.
• I have thought about filing for bankruptcy.
• I struggle to make my mortgage payment.
• I sometimes pay my bills late.
• I have used more than 30 percent of my available credit lines.
• My debt interferes with my sleep, job or home life.
• I have little or no savings.
• I am receiving collection calls or notices.
• If I lost my job, it would mean an immediate financial crisis in my life.

The harsh reality is that consumers who answer “True” to two or more of the above are not candidates for a holiday shopping spree. Ignoring the reality of your financial situation will almost certainly lead to further financial distress down the road. It will come in the form of an unmanageable debt load, resulting in a damaged credit report and lower credit score, likely limiting your access to future credit. If there were ever a year to approach holiday spending with your head instead of your heart, this is it.

“Family Services, Inc. supports financial responsibility, regardless of the season,” Pena continued. “With the ghosts of Christmas past still lingering on many credit cards, piling new debt on top of old cannot be considered responsible by any measure. With any sacrifice comes reward, and the benefits of not having a mailbox full of bills in January will likely outweigh any lifestyle spending adjustments consumers make during the holidays.”

If you’re wondering how to deal with holiday spending on a limited budget, reach out for help by contacting the Consumer Credit Counseling Services division of Family Services, Inc. Call 843-735-7802, or go online to www.fsisc.org.

7,914… AND COUNTING

2009-11-17T14:06:00.000-08:00

by Debbie Kidd, Director
The Homeownership Resource Center
A Division of Family Services, Inc.

It was with great interest that I read the Department of Treasury’s report on South Carolina and the Home Affordable Modification Plan (HAMP). While it is extremely gratifying to see the program gain some traction, I can’t help but think of the herculean efforts of the teams of default counselors who have been working to help homeowners for the past two years. Our counselors have really born the burdens of the many clients who have come through our doors. Many have shed tears with them, and others have offered their own time to help families move out if a foreclosure did occur.

I am honored to work with such a devoted team of professionals who got up to speed quickly, conquered the technical requirements and adapted to every requested change. It’s not easy facing sadness and despair each day, but our counselors do it with dedication and integrity.

As proud as I am of our team, it’s the families who are etched in my mind and heart. It is not easy to walk into a public building, meet with a stranger, and have to explain why the mortgage hasn’t been paid in months. Additionally, having personal and sensitive financial documents reviewed and analyzed – with a critical eye looking for excess – would test the mettle of anyone. Yet, every single day, more and more people come to our office for help. We constantly take calls from people who are desperate, scared, and often misinformed. In some cases they have been scammed by a promise of something that’s too good to be true. Fortunately, we have been able to help a few folks get their money back.

Next year, we are going to have an opportunity to help even more families. It has been estimated that as many as 5 million adjustable rate mortgages are going to reset, resulting in serious payment shock. As we prepare to endure longer days, and even sadder stories, I am going to celebrate the turn of circumstances for those 7,914 South Carolinians who are going to stay in their homes. If a modification happened for them, it can happen for many others as well. South Carolina is very fortunate to have a responsive foreclosure task force and the staff of The Homeownership Resource Center standing ready to do all we can to help.

If you are a homeowner having trouble making your mortgage payment, or you suspect that trouble is just ahead, call us today at 888-320-0350 or visit us on the web at www.fsisc.org.

For the Love of $.19

2009-10-20T11:40:00.000-07:00

Written by: Toby Smith

I had an experience this week that really brought home the message we preach to all clients-new, returning, and prospective; CHECK YOUR CREDIT REPORTS ON A REGULAR BASIS!

One of my New Year’s resolutions was to check my credit report four times a year, instead of two, and during the January check up, I was not happy to see that a problem I thought had been resolved with a local utility company was still showing on my report. I made a mental note to check it again, and to take further action, if necessary. Well, the fall check up arrived, and the problem was still not resolved so I put on my battle gear and called the company.

A pleasant representative, who verified my identity, pulled up the account, and while I couldn’t swear to it, I thought I heard her laugh before she said, “The balance is $.19 cents.”

SAY WHAT???? This has to be a joke! Either a very good one, or a really bad one, but this can’t be!

“Yes, ma’am,” the representative continued, “You did pay the account, but the cents were left off, so technically it’s not paid in full. Let me transfer you down to the credit folks,” she added rather quickly.

Lots of negative thoughts played pinball in my head and the “hold” music, some Kenny G. wannabe, was not making the situation any better. Then, another voice of authority came on the line.

“How can I help you?”

She didn’t say it, but I heard it in her voice – get to the point, no crying, and don’t waste my time!

I humbly explained my sad tale, and advised her of what I learned minutes before. She listened patiently, before dropping the hammer.

“Well, the information you have received is correct. You have two choices, wait for the information to fall off your report, or come down and pay it. We report to the credit bureaus on the 15th and the 30th.”

I went into argument mode, explaining that I had paid the balance off last year; the status should have changed. By now, I’m slightly raising my voice and ask, “Are you telling me that the status didn’t change because of 19 lousy cents? Is that what you’re saying?”

She didn’t even flinch.

“Yes, that’s correct. The bureaus do not recognize the cents, but we do, and that’s why this remains open. You can come down and pay it. We report to the bureaus…[blah, blah, blah]…and here’s your account number for future reference…[blah, blah, blah]…and we close at 5 pm. Have a nice day."

Click.

No chance of that!

Unbelievable!

So, I left work at 3:30 pm, drove 20 minutes, parked, and went inside to pay my $.19 cents. (See, it does pay to keep pennies!)

Aside from a good laugh, I would be grateful if you would take away the following:

1. Check your credit report more than twice a year. Once a quarter isn’t a bad idea, especially, if you are in serious “clean up the credit” mode.

2. Checking your own report presents no problem. However, shopping for credit generates inquiries. There are two types; hard – car dealerships, banks, credit unions and; soft – credit card promo offers, etc. Both can drop your score from three to five points a pop.

3. With respect to status, paying “as agreed” is always the goal. “Current was” means that you fell behind but brought the entry current. “Collection” indicates that you have stopped paying and “Charge off” means that the creditor wrote the item off as a lost cause. But rest assured, it will find a home on your credit report. Seeing the word “paid” in front of collection or charge off indicates that the item was addressed, which is generally a good thing for your numbers. Be careful about paying any and everything, though; some old items can get you into trouble.

4. The folks you do business with either report your monthly affairs to the credit bureau or they don’t. Hopefully they do, and it’s very important that everything goes to all three bureaus, Experian, TransUnion, and Equifax.

5. You might want to pay things down to the penny….

6. If you don’t check your credit report regularly, be prepared for the unexpected, nasty, surprises to pop up. Family Services, Inc. offers a popular class called Credit Cents, which, among other things, teaches participants how to read a tri-merge report (the three credit bureaus) report and encourages the development of a written action plan. For more information on Credit Cents call 735-7862 or visit the website at www.fsisc.org and click on Credit Improvement under Homeownership Resources or Consumer Credit Counseling.

Just a word of warning…if you come to a Credit Cents class, expect to hear this story again. If we ever meet, expect to hear about the day I had to pay $.19. My great-grandchildren–who are nowhere in sight–are going to get a letter about the benefits of checking credit reports regularly.

The receipt reads:
Prior Balance: 0.19
Payment: 0.19
New Balance 0

For the love of $.19…. smile

Don't Pay for Foreclosure Help - Avoiding Rescue Scams

2009-09-17T13:48:00.000-07:00

With foreclosure filings reportedly reaching record numbers this summer, Family Services, Inc. reminds homeowners in danger of foreclosure that they should never pay for help, and should instead seek assistance from HUD-approved nonprofit housing counseling agencies, like Family Services, Inc., and those found at www.findaforeclosurecounselor.org and www.makinghomeaffordable.gov.

“Rescue scams are proliferating at a rapid pace and more homeowners are falling prey to the slick advertising and sales pitches that guarantee to keep them in their homes,” said Debbie Kidd, Director of The Homeownership Resource Center, a division of Family Services, Inc., a local NeighborWorks organization.

Foreclosure rescue scam artists frequently demand upfront payment for their services and “guarantee” to modify, refinance, or reinstate a borrower’s mortgage. The payment demanded can be anywhere from $1,000-$5,000, as was the case for one homeowner in South Carolina. The Homeownership Resource Center, located in Charleston, South Carolina recently worked with a homeowner who was bilked out of more than $2,000 by a company that promised to work with the borrower’s lender to reinstate the homeowner’s mortgage. In reality, the company did nothing and the home was sold at auction. Even worse, the homeowner had no idea until a notice to vacate the premises came from an attorney. Now, the person is left with no home and lost more than $2,000 in the process.

“If you are facing foreclosure, do not pay any person or company up front for services,” said Kidd. “Homeowners facing foreclosure need to be aware that foreclosure rescue scam artists are out in full force and see this as a prime opportunity to make money. When it comes to foreclosure assistance, the old adage ‘you get what you pay for’ does not apply. If you are facing foreclosure, contact a HUD-approved nonprofit housing counseling agency, like Family Services, Inc., to receive foreclosure counseling. Nonprofit organizations are a homeowner’s best defense against foreclosure.”

Family Services, Inc. urges homeowners not to pay a person or company for foreclosure help, and offers borrowers the following tips to avoid foreclosure rescue scams:

• Never use any ad, person, or company that approaches you and claims to be able to “stop foreclosure now” for a fee.

• Never release your financial information online or over the phone to a company you know nothing about.

• Never send your mortgage payment, or any payment, to a company other than your mortgage lender.

• Visit www.findaforeclosurecounselor.org to find HUD-approved organizations that offer free, legitimate foreclosure counseling.

• If you prefer to speak to a counselor over the phone, call the Homeowner’s HOPE Hotline at 888-995-HOPE (4673) for free foreclosure prevention counseling by expert counselors at HUD-approved nonprofit counseling agencies. The hotline is open 24 hours a day, seven days a week, in English and in Spanish. Counseling is also available in 20 additional languages by request.

• Contact your mortgage lender. Contrary to what a foreclosure scammer will tell you, you should contact your lender the minute you have trouble making your monthly payment.

• If you suspect a scammer has approached you or victimized you, contact your local Better Business Bureau or state attorney general’s office. In addition to reporting a scam locally, you can file a complaint with the Federal Trade Commission (FTC). To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant: https://www.ftccomplaintassistant.gov/ or call 877-FTC-HELP (877-382-4357).

For more information about foreclosure prevention, or to make an appointment to meet with a counselor, please contact Debbie Kidd, dkidd@fsisc.org, 843-735-7860.

First Time Homebuyers Could Qualify For $3,500 On Top Of $8,000 Federal Tax Credit

2009-09-11T07:12:00.000-07:00

Qualified tri-county first time homebuyers could receive $3500 from the Homeownership Resource Center, a division of Family Services, Inc. In addition to the $8,000 Federal Tax Credit already available, that could mean up to $11,500 to first time homebuyers. The additional $3,500 will be given to one qualified person or family at each of the six upcoming First Time Homebuyers Workshops hosted by The Homeownership Resource Center. The Homeownership Resource Center is a non-profit, HUD-approved counseling agency.

The recipient of the $3,500 must attend the free First Time Homebuyers Workshop and close on their first home by November 30th, 2009. November 30th is also the date the current Federal Tax Credit will expire. Other restrictions also apply.

Traditionally, the Homeownership Resource Center loans money to qualified first time homebuyers for the initial cost of closing and their down payment. However, due to new federal banking regulations and an accumulation of funds for public distribution, The Homeownership Resource Center will be giving away this money to six qualified first time homebuyers, regardless of income. One first time homebuyer from each of the six upcoming workshops will be selected.

Available Workshops:
Saturday, September 12th from 10am-4pm
Saturday, September 19th from 10am-4pm
Saturday, September 26th from 10am-4pm
Saturday, October 3rd from 10am-4pm
Saturday, October 10th from 10am-4pm
Saturday, October 17th from 10am-4pm

Location: Trident One Stop, 1930 Hanahan Road, North Charleston, SC

The Homeownership Resource Center’s First Time Homebuyers Workshop was created to educate homebuyers about the homebuying process and what to expect when purchasing a new home. Through the workshop, HUD-certified counselors, with more than 20 years of extensive training and experience, work closely with the homebuyer through every step in an effort to simplify and reduce the stress of the buying process. As a result, the Homeownership Resource Center has helped hundreds of individuals and families achieve their dreams of homeownership.

Some of the many topics that will be discussed at The First Time Homebuyers Workshops include: Mortgage programs, buying HUD properties and foreclosures, home inspections, homeownership insurance, getting the most out of your real estate agents, legal fees, and current market conditions.

Please call 843-735-7862 for more information or visit www.fsisc.org.

A Few Downpayment Options

2009-07-29T22:14:00.000-07:00

Alternatives To The 20% Standard

In the early days of mortgage lending, a 20% down payment was required by most lenders as protection against the possibility of homebuyers defaulting on their loans. But as the cost of housing in American has risen, the 20% down payment has become a significant obstacle for many buyers. In order to make homeownership more affordable, a lot of lenders now offer home financing programs that require little or even no money down. These new programs include:

Conventional Loans With Private Mortgage Insurance: Many lenders will make loans with little or no down payment, as long as the borrower has adequate credit. These programs require the borrower to make a payment for private mortgage insurance (PMI) along with their monthly mortgage payment. Talk to your home mortgage consultant about your options, and how PMI payment will affect your total monthly payment. PMI can open doors for buyers challenged by a lack of down payment funds. And it’s not something you have to live with forever. Once you establish a 20% equity share in your property — through appreciation and paying down your loan — you can eliminate the PMI.

VA Loans: The United States Department of Veterans Affairs (VA) has been providing no-money-down loans for veterans and their families since the inception of the GI Bill. However, few people realize that the general public also can get VA financing if they buy a property that’s been foreclosed by the Department of Veterans Affairs. Your real estate agent can help you locate these foreclosures in your area.

FHA Loans: The Federal Housing Administration (FHA) also makes loans with very little down payment required (3%). Some of these loans are known as “bond loans” — state and local programs designed to revitalize certain neighborhoods, help potential buyers in lower income brackets, or encourage homeownership among set groups like teachers and police officers.

$8,000 First-Time Homebuyer Tax Credit

2009-06-29T15:22:00.001-07:00

Some Quick Q&A

When do I need to purchase to qualify?
If you buy a home between Jan. 1 and Dec. 1 this year and close escrow during these dates, you will qualify for an $8,000 tax credit - as long as it is your primary residence and you meet the simple requirements.

How does the law define "first-time homebuyer"?
The law defines "first-time homebuyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase.

What are other requirements to qualify?
All U.S. citizens who file taxes are eligible to participate. An income limit of $75,000 a year for individuals and $150,000 a year for joint filers also applies.

How do I apply for the credit?
Taxpayers should use IRS Tax Form 5450 to claim the first-time homebuyer tax credit.

Does the credit have to be repaid?
No. Unlike a similar tax credit passed in 2008, this $8,000 tax credit does not have to be repaid to the IRS.

Can I use the tax credit toward a down payment or other closing costs?
Yes. An announcement made May 29 allows the tax credit to be used toward purchase costs of a home, including down payment in some cases. This can be done one of two ways. First, buyers using an FHA-approved lender can sell their anticipated tax credit to the lender and use the proceeds to immediately apply the tax credit to any down payment above the minimum down payment of 3.5 percent required with FHA-insured mortgages. Second, buyers who receive financing through state housing finance agencies and certain non-profits will be able to use the tax credit for their down payments via a tax credit advance loan that does not result in any cash back to the buyer.

Choose Homeownership

2009-06-17T15:58:00.000-07:00

From Military.com | By Wells Fargo

Homeownership is about security, comfort, and fulfilling the American dream. The sense of community that comes with putting down roots in a place of your own, the security of owning the roof over your head, the opportunity for financial growth--all these accompany the choice to become a homeowner.

But buying a home is also the single largest investment most people ever make. Along with all the benefits of homeownership comes the responsibility to manage that investment wisely.

Benefits of homeownership

The rewards of owning your own home include many benefits unavailable to renters. Among other things, homeownership allows you to:

Start building wealth: Making a mortgage payment every month builds up your equity stake in your home, contributing to your long-term savings and helping you solidify your financial future.

Reduce your tax burden: The interest you pay on your mortgage is usually tax-deductible, which can lead to significant tax savings--especially in the early years of the mortgage term, when most of your monthly payments go toward interest. Make sure you consult your tax advisor about the deductibility of interest.

Build your credit history: Timely mortgage payments can contribute to a positive credit history.

Eliminate landlord hassles: You'll no longer have to fear non-renewed leases and rent increases.

Make the house your own: Aside from zoning rules, Homeowner's Association requirements, and local building codes, you'll be free to decorate, remodel, and renovate as you wish.

Responsibilities of homeownership

Before deciding to buy a home, consider the responsibilities that will accompany your purchase. You will most likely have to make some adjustments to account for the following:

Additional financial responsibility: Whether buying is more costly than renting depends on your individual circumstances. As a renter, some or all of your utilities may have been paid for, but now they will be solely your responsibility. You'll also be responsible for property taxes and homeowner's insurance in addition to your loan.

Maintenance and repairs: Maintaining your property will be up to you, not the landlord.

Less mobility: Unlike having a lease where you can move with minimal notice, moving when you own a home is more complicated since you're responsible for ensuring the mortgage gets paid.

Depreciation: Real estate often increases in value over time, but not always. Owning a home means facing the risk that its value will depreciate.

Beyond the financial benefits, the personal rewards of homeownership can be tremendous -- as long as you prepare for the responsibilities that come along with it, and choose a home and a mortgage that are well-suited to your needs.

Foreclosed Properties - 5 Important Distinctions

2009-06-16T17:20:00.000-07:00

From Military.com By: Joe Gladden

Here are five important distinctions that make a foreclosed property different than a typical home sale.

1) You are negotiating with an unemotional bank, not an individual.
Ultimately the bank will have a bottom line established by the officer or board. Whether or not the home sells does not directly impact an individual or their personal finances. And that bottom line may or may not be below market value.

2) Banks rely heavily on processes and procedures … which take time.
Do not expect the negotiations and decisions to move quickly. As opposed to the conventional negotiations with individual sellers, negotiations will not continue past normal working hours or into weekends. Likewise, expect the bank to impose additional contract requirements such as specific disclosures and addendums that will further encumber the process.

3) Most banks will list and sell the property “as is.”
This term has specific legal meaning and may vary by state laws and traditions. It may mean that the bank requires the purchaser to sign a disclosure or addendum that precludes negotiations based on a home inspection and / or the traditional pre-settlement walk through inspection. So, before you sign a contract on a foreclosure property, you may want to seek permission from the bank to complete the home inspection before making the contractual offer.

4) Foreclosures are truly a sad event and it is likely that the previous owner would not maintain the property in excellent condition during the process.
Some angry owners may in fact inflict intentional damage to the property upon departure. You should also consider that some or all of the utilities may be disconnected. It is even possible that utility meters have been removed, which can be quite expensive to reinstate. This can obviously present additional concerns and expenses as water seals in plumbing may dry out, the home may have been without heat or air conditioning for a period of time. All of these circumstances can increase your costs.

5) Although it is hard to believe, some states have a “Redemption” law.
This law allows previous owners to “Redeem” their home … even after the sale by paying off their debt. Each Redemption State may have different laws. You should do very careful research on this aspect of buying foreclosures, and consult an attorney, before you write the contract.

New Fannie Mae Loan Lookup Available for Borrowers

2009-03-27T14:29:00.000-07:00

As more borrowers become familiar with the Making Home Affordable program, there has been an increase in borrower inquiries regarding the identity of their mortgage investor. To help borrowers answer this question, Fannie Mae has launched the Fannie Mae Loan Lookup for borrowers. The address is: http://loanlookup.fanniemae.com/loanlookup/

This new tool replaces the existing inquiry feature and provides an immediate answer indicating whether or not Fannie Mae is the investor on the loan at a specific address. Borrowers only need to enter their address information to get a result.

Freddie Mac offers a similar tool. Borrowers can visit Fannie Mae’s Web site, fanniemae.com, or Freddie Mac’s Web site, freddiemac.com, to use the new lookup tools. Alternatively, with the borrower’s consent, you may utilize these tools to quickly determine the mortgage investor for the borrower.

For additional details on the Loan Lookup Tool, please review the Frequently Asked Questions for lenders on http://www.fanniemae.com/.

(author: Julie St. Jean)

Administration Launches New Consumer Website for Responsible Homeowners Seeking Relief

2009-03-27T14:13:00.000-07:00

MakingHomeAffordable.gov Features Self Assessment Tools, Calculators to Help Borrowers Determine Eligibility, Payment Reductions under Administration's Refinancing and Loan Modification Program

MakingHomeAffordable.gov

Washington, DC-- The U.S. Department of the Treasury and the Department of Housing and Urban Development (HUD) today launched a new website for consumers seeking information about the Obama Administration's Making Home Affordable loan modification and refinancing program. MakingHomeAffordable.gov offers features including interactive self-assessment tools that will empower borrowers to determine if they're eligible to participate and calculate the monthly mortgage payment reductions they could stand to realize under the Making Home Affordable program.

First announced by President Barack Obama in February, Making Home Affordable will offer assistance to as many as 7 to 9 million homeowners making a good-faith effort to make their mortgage payments, while attempting to prevent the destructive impact of the housing crisis on families and communities. MakingHomeAffordable.gov is a joint effort of the Department of the Treasury and HUD.

"Education and outreach is central to the success of our Making Home Affordable program," said Treasury Secretary Tim Geithner. "Putting resources and tools directly in the hands of homeowners will expedite the process of delivering relief to responsible borrowers, and stabilizing the housing market is central to our overall economic recovery."

"The tools offered on this site will help American families access the help they need even faster," said HUD Secretary Shaun Donovan. "Communicating how this program works and who is eligible to those who need it is critical to the program's success, and this website does just that."Since releasing the guidelines to enable servicers to begin modifications of eligible mortgages under Making Home Affordable on March 4th, representatives from Treasury, HUD and other members of a broad interagency task force have conducted detailed briefings and training sessions for mortgage loan servicers and investors, nonprofit housing counselors and nationwide borrower advocacy groups. Through these early and aggressive efforts to arm those interacting directly with borrowers with information, interagency representatives have briefed more than 2,500 participants on the Administration's plans in the last two weeks.

A wide array of large banks to small lenders have already agreed to participate in Making Home Affordable, and servicers have undertaken steps to proactively engage borrowers and respond to their inquiries related to the new program. For example, JP Morgan Chase has put several special tools into place and initiated proactive solicitations to eligible borrowers around the Making Home Affordable program, including an online site to provide program details and allow borrowers to download a new financial information package; increased staffing in a dedicated service center that provides simple entry point for all borrowers, including CHASE, heritage Washington Mutual and EMC; a partnership with Fannie Mae to solicit over 125,000 eligible borrowers; and solicitation to an additional 180,000 non-GSE eligible borrowers.

With those wheels in motion, the Administration is now accelerating efforts to communicate directly with borrowers about the Making Home Affordable program. Features of the MakingHomeAffordable.gov website launched today include:

Extensive information about the Administration's Making Home Affordable plan
Self assessment tools to allow borrowers to determine if they are eligible for the program
A calculator feature that allows homeowners to estimate the reduction to their monthly mortgage payment that they might stand to realize under the plan
Resources to find free, HUD-approved counseling services for borrowers who have additional questions
A handy checklist to ensure homeowners collect all the documents they need before calling their servicers