Available in Benton, Fountain, Montgomery, Parke, Vermillion, and Warren Counties.

Community Action Program is part of the Indiana Foreclosure Prevention Network (IFPN). We counsel families residing in our service area.

Due to employers laying off workers or cutting hours, many families are faced with only half the income they had when they initially attained their mortgage. They then start a juggling act in trying to keep everything paid, raising a family, and trying to look for some type of employment to supplement the household income. In doing so, many families are letting their mortgage go into default.

Other factors that have also contributed to the growing number of default/foreclosures are the high interest rates and unsavory lending practices.

This program is designed to counsel families facing mortgage default/foreclosure. During counseling we work with the family to determine what their action plan is to keep the home or try to sell it. We also contact the lender to see what the options are for the family. Sometimes families need to do a hardship package, or get other needed information to the lender to make a determination on what can be done to help the family keep the home.

The program is not a funding source to assist a family in bringing their mortgage current.

When a family decides they are going to try and save their home they need to look at their household budget. Is there enough income coming into the home to support all the household needs and pay a mortgage? This is one of the things we have the family do in the counseling, is to realistically look at their household income and all their monthly bills, including but not limited to gas for their vehicles, car insurance, phone service, cable, etc. Are there any of the monthly expenses that can be eliminated or down sized and how much working capital would this put back in the budget?

Should the family decide that it is not feasible for them to try and save the home due to a high debt to income ratio, we then counsel them on what options are available to them.

Anyone with questions regarding this program can contact Alice Young at ayoung@capwi.org or by phone at (765) 793-4881.

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