Many veterans and average Americans are struggling. With the announcement the Navy is going to reduce forces by another 3,000, even more are going to find themselves unemployed soon.

Another factor directly affecting veterans is the backlog of disability claims being processed by the Veterans Administration.

Because of the constant flow of claims from vets coming home from Afghanistan and Iraq, claims for retirees are taking between 6 and 18 months.

This perfect storm means many veterans are facing foreclosure on their homes.

Men and women who have dedicated their lives to serving their country are losing the American dream they have worked so hard to defend and enjoy.

There is help. More importantly, there is help that wasn’t available before, however, very few know about it. On April 14, House Bill 1362, sponsored by Rep. Tina Orwall (D-Des Moines), was signed into law by Gov. Christine Gregoire.

The law, which takes effect in July, will give indebted homeowners more time, free counseling and free third-party mediation with their lenders. Its passage makes Washington the third non-judicial foreclosure state in the nation to pass a foreclosure mediation law.

Also known as the Foreclosure Fairness Act, the new law requires banks to sit down with homeowners and explore options outside of foreclosure.

Homeowners facing foreclosure can now receive mediation between themselves and their mortgage lender. Beause of this new law, you will have access to people who will inform you, help you work with your lender, explain all your options and help put you on a path that may keep you in your home.

If you fall behind on your payments, you will have 30 days from the time you receive an initial letter from your lender to respond and ask for a period of time called “meet and confer.” If you ask for this period, you’ll get 60 days to talk with your lender and counselors before the lender can issue a notice of default, followed by a notice of trustee sale.

If you do not ask for a “meet and confer” within 30 days of the initial default letter, you essentially waive your rights to working with a counselor.
Nevada and Maryland already have homeowner mediation laws. According to lead program analyst, Michael Sommermeyer, in the first year in which this law was in effect in Nevada, 46 percent of people who participated in mediation were able to keep their homes.

According to the non profit organization Homeowner Institute, the sooner a homeowner begins talking with a mediator, the better. One of the benefits to talking with a mediator before you get your first letter of default, is that they can advise you regarding all the paperwork you will need to gather. If you are anticipating problems paying your mortgage, there are a few things you need to keep in mind:

1. The initial default letter will vary by lender. Legislators are working to get the letters mandated into a uniform format, but that’s still in the works. This means if you have a second mortgage you will need to pay close attention to your mail and carefully read anything from your lenders.

2. You don’t have to wait for the law to take effect to utilize a housing counselor. If, like many of America’s unemployed, you anticipate you may have a hard time making your monthly mortgage payment, you can get help immediately.

3. There are only two people that can start the mitigation between you and your lender — a lawyer or a housing counselor. The home owner cannot initiate mitigation. If you are currently in the foreclosure process, you can still seek the educational services of a housing counselor so you can clearly understand your options, at no cost to you.

4. Contrary to popular opinion, banks do not want your home. They make money from the interest from your loan, not having to deal with all of the issues of homeownership. For this reason, many are surprised with the level of cooperation they find when they use a lawyer or a housing counselor.

If you think foreclosure may be in your future, but you don’t have the funds for a lawyer, you can get help.  To contact the Homeownership Institute, call 679-7621 for free consultations. Get informed, get educated and get back on the road to peace of mind.