December 10, 2009

New referral option may help residents fend off foreclosure

The City of Livonia now has a new option for financially-challenged residents who are trying to make their mortgage payments to stay in their homes.

The Livonia Housing Commission has previously offered referrals and information for residents who are looking for help when they may be in danger of foreclosure. Information is provided so residents can contact counseling agencies approved by the Michigan State Housing Development Authority and HUD. Our goal is to allow residents to remain in their homes.

Recently, though, the City began working with Central Detroit Christian, a non-profit agency that offers a program to quickly determine a homeowner’s options to avoid foreclosure or modify their loan terms. Their staff will take your information in person, over the phone or electronically, and then work directly with mortgage lenders. There is no cost to the homeowner; costs are paid by HUD.

“We hope this program will allow more residents to modify their loan agreements, so they can lower their payments and stay in their homes,” said Livonia Mayor Jack Kirksey. “As a service to our residents, we will provide meeting space here in Livonia to try to help forestall as many foreclosures as possible.”

Our neighbors in Redford have used CDC and residents have reported success in getting loan modifications, so that people can stay in their homes. This system doesn’t work in every case. For instance, residents must have a source of income to qualify.

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It is important that homeowners call for help as soon as they know they will have trouble making a mortgage payment or once they already have missed one.

Through its Mobile Foreclosure Prevention Program, the CDC will meet with Livonia residents in Livonia, using confidential office space at the new Livonia Housing Commission building, 10800 Farmington Road (the former Shelden Senior Center). Scheduled times they will be onsite are 10 a.m. to 3 p.m. Fridays, beginning Dec. 18. Other times can be scheduled by appointment.

For more information or to set an appointment for a meeting in Livonia, please contact Livonia Housing Director Jim Inglis at 248-477-7086, ext. 5.