Foreclosure Guidance

Along with many other Indiana and Michigan agencies and officials, the FHLBI is concerned about the impact of rising foreclosure rates on communities and the economy in its district. FHLBI has been actively seeking ways to respond to the issue and has developed a loan program to assist financial institutions in refinancing and modifying loans for customers at risk of delinquency and default. This program, called HomeRetain, is a lending program that makes secured loans available to members at the FHLBI's cost of funds, plus a small administrative fee. Members can use HomeRetain advances to refinance or modify adjustable or fixed rate mortgage loans for qualified homeowners. Any lending programs offered by FHLBI must be delivered through our member financial institutions, not directly from FHLBI.

We are also concerned about the impact that foreclosure can personally have on borrowers and their families. Experience has shown that early communication between the borrower and the lender results in more options and workable solutions to avoid the pain of foreclosure. Borrowers may also contact organizations that provide guidance and referrals free of charge.

In Indiana, at-risk homeowners can access free mortgage foreclosure counseling and education by visiting www.877GetHope.org or by calling a telephone hotline at 877-GET-HOPE, available seven days a week and staffed by a local network of qualified advisors.

In Michigan, the Save the Dream initiative provides foreclosure information and referral to certified counselors. An alternative is the Homeownership Preservation Foundation supported by NeighborWorks America, which offers a website www.995hope.org and a national hotline, 1-888-995-HOPE. The hotline is staffed with counselors trained to set up callers with a plan of action to help in any phase of mortgage default.

Foreclosure Links
Indiana - www.877GetHope.org
Michigan - Save the Dream
> Homeownership Preservation Foundation
> HUD
> Counseling Resource Guide

Updated: July 2, 2009