Contract - IHCDA - Mortage Foreclosure Counseling

Home Browse Search

a. Draft and submit hardship letter to servicer that describes the client's situation, reason for delinquency, factors that should be considered when developing a workout plan, and an estimate of the housing cost the client can afford to pay. Contractor must keep on file a copy of the fax transmission report, e-mail, portal transmission screenshot, or postal mail receipt as evidence that this was submitted to servicer. b. Document an attempt to contact the servicer or lender via fax transmission receipt, e- mail, or postal mail receipt. If a workout is possible, fill out and submit forms required by the service to move forward with a workout plan, loan modification or other available program and maintain proof that these were submitted in the client file (fax transmission receipt, e-mail, portal transmission screenshot, or postal mail). c. Complete and submit application for local resource options including refinance programs or rescue funds and document that referral took place via fax transmission receipt, email, or postal mail receipt. d. Assist in situations where client elects to pursue sale options and document the assistance that took place and communication with industry partners via fax transmission report, e-mail portal transmission screenshot, or postal mail. A referral list of realtors for a short sale, or other sale options, must include at least three realtors and the client's signature stating they received the list. This signed referral list should be retained in the file. Please note that referring a client back to the servicer/lender is not considered a referral. e. Collecting and transmitting documentation required for refinance or modification decisions, if that is what Action flan dictates. Contractor should keep on file a copy of the fax transmission report, e-mail, portal transmission screenshot, or postal mail receipt as evidence that this was submitted or servicer. Note: Neither Counselor Notes nor telephone logs satisfy the requirement for documenting Verification of Action Taken, as neither provide verifiable proof that any action took place. Fax transmission sheets, e-mails, mail receipts, screenshots of portal communication, or other verification that action took place is required to be retained in the client's file. When reporting for Level One counseling activities, documentation of all six of these completed steps must be in the client's file: Intake, Authorization, Disclosure, Privacy Policy, Budget and Verification, and Action Plan. The Contractor must certify that all clients are owner -occupants of their homes at the time they receive counseling. Clients must be the owner of single-family (one -to four -unit) properties with mortgages in default or in danger of default. The Contractor cannot receive payment for a client until after all the required actions for the level have occurred and have been documented accordingly. Level Two Counseling (Client Follow-up). To qualify for a Level Two payment ($100.00) Contractor must have contact with either the client or the client's lender, in any combination, at least three (3) times within a 90-day period following the completion of the Action Plan and (00029857-1) Page 23 of 29