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ACORN and Household International reached a settlement of class action litigation relating to the mortgage lending practices of Household's two U.S. branch -based businesses, Household Finance Corporation and Beneficial Corporation.

"The centerpiece of the settlement is a 72 million dollar Foreclosure Assistance Program (FAP). Under this program, borrowers who are behind on their loans because they cannot afford the payments will have their interest rates reduced enough for their loans to become affordable again. The interest rate reductions can be as large as 700 basis points. For some borrowers, including those whose loans weren't affordable when first made and those who have suffered a major loss of income, the reductions will be permanent.

"The settlement builds on the agreement reached between the Attorneys General and Household earlier in 2003. In addition to the FAP, it also provides relief to borrowers who were not entitled to benefits from the earlier settlement and it includes additional practice changes that will protect future borrowers.

It also includes a Fresh Start program for borrowers who have lost their homes through foreclosure to HFC.

Finally, the resources in the settlement for counseling and financial literacy will help ACORN expand our work helping borrowers to avoid abusive loans and to access credit on fair terms. After more than 3 years of efforts by ACORN members to win changes in Households practices and relief for borrowers, we are glad to be able to use this new partnership around the FAP and support for financial literacy to continue working for fair lending.

ACORN Housing is aggressively working to insure that the maximum number of borrowers obtain relief. If you have suffered a verifiable loss of income or a verifiable increase in expenses since the time you took out your loan (such as loss of employment, temporary or permanent disability, reduction in monthly pay, increase in mortgage interest rate, child care, taxes or medical expenses), we may be able to help you to obtain hardship relief.

We have attached a worksheet to help to determine if you qualify for these programs. Please include all information listed on the worksheet, including your income (after taxes), expense, and loan information - we need documentation for all income and expenses. After completing this worksheet and gathering necessary documents, please fax to FAP at 312 939-4239 or mail to:

Foreclosure Avoidance Program-ACORN Housing
209 W. Jackson Blvd., Ste#301
Chicago, IL 60606

In addition to this worksheet - (download)
please send copies of all Income/Expense verification documents such as:

• Recent pay stubs for four weeks
  
• Social Security award letter
  
• Pension award letter or check stub
  
• Unemployment award letter or check stub
  
• Disability award letter
  
• Notarized letter from tenant for rental income
  
• Medical expense statements
  
• Child Care provider bills
  
• Alimony/Child Support court order
• Mortage Statements from other Lenders
• AHC Authorization Form - (download)

We must receive all necessary documents before we can review your loan and financial situation. Please collect all income/expense documents and fax or mail as a complete set. If you have questions, please email fap@acornhousing.org or call (888) 409-3557

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