"the People's Paths!" Cherokee News Path - CN Offers Foreclosure Prevention Assistance

Tahlequah, Oklahoma - In our uncertain economy, facing home foreclosure has become an unfortunate reality for many people, including many Cherokee Nation citizens. Before that happens, the tribe hopes delinquent homeowners will come in to see if help is available to them under the new federal lending regulations.

According to the Center for Responsible Lending, 15,239 foreclosures are expected throughout Oklahoma in 2009, and out of the top five delinquent counties in Oklahoma, three are within the Cherokee Nation 14-county jurisdictional boundaries. Other statistics show an average delinquency rate of more than three percent for the same area during the fourth quarter of 2008 as listed by the Federal Reserve Bank of New York.

The Cherokee Nation Mortgage Assistance Program (MAP) offers guidance and resources to assist homeowners in better decision-making when it comes to prioritizing their personal finances. The services promote self-sufficiency and provide the necessary skills people need to prevent foreclosure.

Shay Smith, acting director of the Cherokee Nation’s Small Business Assistance Center, says taking early action when payment troubles arise will increase the chances for a positive outcome.

“A Self-Sufficiency staff member will work with the client and mortgage lender to develop a plan of action. In some cases this means developing a workout plan to get the delinquent homeowner caught up; in other cases this means working with the client and lender to negotiate a deed in lieu of foreclosure or a short sale,” said Smith. “The sooner a homeowner contacts us, the more options they may have.”

Cora Lathrop, MAP Mortgage Officer, said in February a client who was in trouble contacted them for help. The client had been making payments 30 days late for two years and their loan was an adjustable rate that had risen to seven percent, making meeting the new higher payment amount very difficult. Every month, late fees were stacked on, driving the loan balance even higher. Lathrop contacted the client’s loan servicing company and found that with the new regulations, the client’s loan could be modified to a fixed rate. All late fees were forgiven and the client’s payment is now more affordable.

“It is very important to work with your lender or servicing company to modify your loan before you receive a foreclosure notice,” said Lathrop.

Cherokee Nation MAP is a part of the Small Business Assistance Center’s Self-Sufficiency program. The goal of the Self-Sufficiency program is to create financially fit individuals who learn how to create wealth and retain assets. The program offers home buyer education covering topics such as shopping for a home, mortgage products, understanding credit, using credit wisely, and foreclosure prevention.

All services are free and confidential. For more information please call 918-453-5536.