Foreclosure Prevention Program

Community Funding’s Family Financial Stabilization Program [FFSP] exists primarily to provide assistance and relief to homeowners who are behind on their mortgage payments and may face foreclosure. By assisting needy homeowners, the FFSP also helps stabilize neighborhoods and communities, and prevents monetary losses to the homebuyer, as well as lenders, insurers, neighbors, community businesses and city governments.

Program Structure:
The three-tiered Family Financial Stabilization Plan takes a comprehensive approach to family and community stabilization through counseling, financial assistance, and education:

Counseling:
In the one-on-one counseling process, we discuss what led to the inability to pay a mortgage on time, and what will prevent the homeowner from paying it in the near future. Our staff explains foreclosure procedures and discusses alternative routes.

Financial Assistance:
Community Funding extends loans to homeowners who still cannot pay their mortgages even after budget counseling. Among those eligible, assistance is given on a case-by-case basis and loans are secured by a lien against the property and/or a promissory note equal to the amount of the assistance. When Community Funding receives loan payments, the money is put back into a fund so it is available to meet the needs of other homeowners.

Education:
In the area of education, Community Funding’s homebuyer classes address both a homebuyer’s financial responsibilities and his/her options when falling into foreclosure territory. Possessing correct and useful information during the home buying process is a necessary preventative measure to foreclosure. Therefore, anyone who puts less than 20% down on their home and who receives a mortgage through Community Funding, must participate in a first-time homebuyer class.