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Cambridge Credit Counseling
Foreclosure Intervention & Default Counseling
Frequently Asked Questions (FAQ)

What will a foreclosure intervention counselor do for me?

Have a housing counselor from a non profit HUD approved housing agency assist you can make the process a lot easier on your end. Our counselors know the ins and outs of the servicer's requests. They can do follow ups and help you with any questions throughout the process. They also keep a full file for you in order to keep track of everything that was sent to the servicer. If and when the servicer makes a decision our counselors can explain what needs to be done or they can negotiate with the servicer to make possible changes.

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How much does housing counseling cost?

There is no charge for foreclosure counseling. This is a free service that we offer because we are a non profit HUD approved agency.

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What will I need to have together in order to move forward with counseling?

We have an intake department that will take down some basic information from you and go over a budget. You should have a good idea of your monthly income and your monthly expenses. The intake person will send you forms that you will need to read over and send back to us in order for a certified counselor to call you. Once we receive these forms a certified housing counselor will call you and go over some options and let you know what you need to gather in order to move forward.

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What is a loan modification?

A loan modification is a written agreement that permanently changes one or more of the original terms of the loan. Modifications can include:

  • Reduction of the note rate
  • Reduction of the principle balance
  • Extension of the maturity date
  • Change in the product type (example: adjustable to fixed rate mortgage)
  • Increase in the unpaid principal balance caused by capitalizing the delinquency.
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What is a short sale?

This is a way to avoid foreclosure. It's the sale of a property for less than the amount necessary to pay off the loan in full. The lender agrees to accept the proceeds of the sale as full satisfaction of the borrower's debt. The property must be sold "as is". The borrower may not receive any cash or other valuable consideration from the transaction. The lender usually agrees to not seek a deficiency judgment for any loss they may experience.

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What is a Deed in lieu?

This is when a borrower voluntarily conveys the title to the lender in exchange for a discharge of the delinquent debt. The lender may assume all of the homeowners' responsibilities and liabilities with the respect of the property including: payment, subordinate liens, payment of taxes, association dues, judgments and legal liability for any hazardous conditions. They must also take over the responsibilities of a landlord to any tenants living in the property. The Deed In Lieu must be completed within 90 days of the initiation of the process.

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Is refinancing an option for me?

Refinancing is an option available for homeowners with a good credit rating. This gives them an opportunity to receive a lower monthly payment and a lower interest rate. It may not be an option if a homeowner's credit rating is not good. If it has been damaged due to delinquency then refinancing will not work out. The interest rates may be high if the refinance is done for someone with a sub-prime loan.

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