Housing Counseling Program

Foreclosure prevention sets homeowners on right path

 

Bradenton—After two years of trying to work with her bank to modify her mortgage and achieving no success, Silvia Toro came to Catholic Charities of Manatee County looking for assistance. She had lost her job and her home was not affordable anymore. She was in desperate need of help.

 

“She was very distraught and very frustrated when she came to Catholic Charities,” said Lucy Sanchez, a counselor for the Housing Counseling and Foreclosure Prevention Program of Catholic Charities. “Once Silvia lost her job, she went on Social Security benefits and managed to pay her mortgage payments but was increasingly not able to pay her other bills. Fortunately she came to us before it got too bad,” Sanchez said.

 

Toro has owned her home since 1998 and tried to work with her bank to get a loan modification. She supplied all the documentation that was requested but the lender continued to delay the process which magnified her economic woes. “This is a very common situation,” said Sanchez. “The banks often do not hear the cry of their clients. People who are in a financial crisis can only hold on for so long,” she said.

 

Sanchez discovered that Toro qualified for the Home Affordable Modification Program (HAMP), a federal program that helps homeowners receive a loan modification for their mortgage. She mediated with the bank on Toro’s behalf. “Silvia was able to get her loan modified from 6.5% interest to 2% and stay in her home,” Sanchez said. “The whole process took us about ten months.”

 

“I felt so relieved when I came to Catholic Charities. I knew they could help me,” said Toro. “I love my home and my neighborhood. I was determined to stay there.”

 

“One of the smartest things that Silvia did was to continue to pay her mortgage,” said Sanchez. “You have to keep paying it or you will ruin your credit and you will have to work a lot harder to resolve your problem as you will have less options.”

 

According to Sanchez, not all homeowners are able to keep their homes. “We also counsel people who cannot keep their home as to what are their options,” Sanchez said. “We give them hope and let them know that it is OK. It is important to be realistic and deal with the situation at hand and plan for the future.”

 

The Housing Counseling and Foreclosure Prevention Program offers assistance with foreclosure prevention, pre and post purchase issues, credit and budgeting, and financial literacy and money management. A free First Time Homebuyer Class also is available once a month at Catholic Charities in both English and Spanish.

 

Partial funding for the Housing Counseling and Foreclosure Prevention Program comes from Catholic Charities USA and Fannie May. The program is in need of donations and volunteers to perform clerical duties.

 

For more information, please call 941-714-7829, ext. 302. Or, email lsanchez@ccdis1.org.

 

Photo: Silvia Toro (left) works with Catholic Charities Housing Counselor Lucy Sanchez on a loan modification so that she can afford to stay in her home.