Be a good neighbor. Identify zombie properties to your community.
The City of Lackawanna's main goal is to keep homeowners and their families in their homes. Education regarding prevention and early intervention can assist with the knowledge and advice from providers that can help homeowners feel a sense of security when facing issues that may affect their ability to pay their monthly mortgage payment, which can result in a mortgage default or possible foreclosure.
Lackawanna offers public information and educational outreach events throughout the community that can help reduce the number of new abandoned and vacant properties in the area.
The Department of Development and Code Enforcement are the primary departments that address the abandoned and vacant Zombie properties. The Western New York Law Center, Belmont Housing, WNY ACCESS and Catholic Charities provide services associated with addressing the vacant properties and prevention programs.
Options to keep your home
Partial Claim: A borrows receives a second loan in an amount necessary to bring the mortgage payments up to date. The loan is interest free and does not have to be repaid until you sell your home or pay off your first mortgage. This option is only available to borrowers with FHA- insured loans. If you have a conventional loan asks your lender if they offer an “advance claim.”
Mortgage Modification: A modification is a permanent change to your loan through which the overdue payments may be added to your loan balance, the interest rate may be changed or the number of years you have to pay off the loan may be extended.
Special Forbearance: Forbearance is a special agreement between the lender and the borrower to delay a foreclosure. The literal meaning of forbearance is “holding back. “Your lender may provide for a temporary reduction or suspension of your payments to allow you time to overcome the problem that reduced your income.
Options when you can’t keep your home
Contact Federal Housing Administration: HUD’s Nation Servicing Center can assist homeowners with FHA insured loans by calling (877)622-8525. Hearing or speech impaired persons by can call TDD/TTY Number (800)877-8339.
Pre-Foreclosure Sale: Pre- Foreclosure is the status of a property which is in the early stages of being repossessed due to the property owner's inability to pay an outstanding mortgage obligation. At this point, the property owner has the opportunity to pay off the outstanding debt or sell the property before it is foreclosed. You also may be eligible to receive a relocation expense if you qualify. With the lenders approval you can offer your house for sale at fair market value even if you receive less than the amount owned on the property.
Deed-in-lieu of Foreclosure: Deed-in-lieu of Foreclosure is a potential option for the homeowner to avoid foreclosure. This allows the borrower to voluntarily return the property back to the bank in exchange for the release of all obligations under the mortgage. You may be eligible to receive a relocation expense if the property is left clean and undamaged.