FAQ

Frequently Asked Questions (FAQs)

FAQs

General FAQ

1. How Can FC HELP enable me to keep my home?

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2. Is it too late to ask for help? How much time do you need?

Each situation is different. We often succeed in helping people with only a few days left before the foreclosure sale. However, it is always easier if there is more time. Typical mortgage servicers will not go out of their way to help. As a result, time is of the essence. Please call immediately – the more time we have, the easier it is for us to help you.

3. I’m strapped for money, how much does FC Help charge for consulting?

We will consult with you for free. You only pay when you are due for a monthly loan or rent payment. Please contact us so we can discuss which of our solutions will work for you.

4. What other alternatives do I have?

We offer real solutions that can keep you in your home as well as help you reduce your financial distress. Of course, there are other ways to deal with foreclosure situations. Namely, you can sell you home to a redevelopment company or to a bargain hunter (door knocker). These companies and individuals specialize in investment properties. They focus on getting people out of their homes so they can fix up and resell the homes for quick profit.

5. What about bankruptcy?

Bankruptcy may be appropriate in some situations. FC Help can recommend a bankruptcy attorney that will look into your situation and help you decide what is appropriate for you. In some instances, we will refer you to a bankruptcy attorney to delay the foreclosure sale until we can arrange one of our solutions to keep you in your home.

6. How does FC Help make money?

FC Help gets its income from the rental payments and from the difference between the amount we spend to purchase homes and the price at which we sell them. However, we have a fixed margin when the house is sold back to the original owner.

Refinancing FAQ

1. I have bad credit—Can FC Help still help me?

Yes. FC Help looks at much more than credit scores. We consider circumstances on a case-by-case basis. Maybe you were out of work for 6 months or were suddenly faced with unexpected bills. Many events in life can create financial distress. If you want to save your home, we want to help you find a way. We do not judge you – we try to get you back on track.

2. What kind of loans do you give? do you charge high interest rates?

We will tailor the loan to your needs. Depending on the individual’s needs, we originate one to five year loans. We can adjust the interest rate to make sure you are comfortable with the payments and, if you so wish, we can give you an interest only loan which typically has a lower monthly payment.

3. Is there a prepayment penalty?

We do not typically charge a pre-payment penalty.

4. Can i get cash from the refinancing to pay other debts?

Yes, depending on the value of your house and your ability to pay.

5. do you collect insurance and tax with the mortgage payment?

We do not require you to pay the insurance and real estate tax with your monthly mortgage payment. You can pay these on your own. However, if you prefer, we can set-up an escrow account for you and collect these payments monthly so that the funds are available to pay the insurance premium and tax when due.

LBB – Lease-Buy-Back FAQ

1. What will happen to my equity if I sell you my home?

You will regain much of your equity when you repurchase your home. We give you a "Bill of Rights" contract that will spell out your rental and re-purchase rights.

2. How is the repurchase price determined?

The repurchase price is typically 10% over the amount we paid to purchase your house when you buy it back within a year. The less we pay to buy your house, the less you will pay to buy it back regardless of its market value. All rates and prices are included in our written agreement.

3. How much will my rent cost me?

The monthly rental is a function of the amount we pay to your lender(s). There is a good chance your monthly payment will go down compared with your mortgage payment. The less we pay to your lender(s) the less you pay in rent. Further, each time you make a rent payment larger than the agreed upon rate, 150% of the excess amount goes toward your repurchase. For example, if your rent is $800 per month and you pay $900 per month, we will apply $150 each month towards your future purchase or closing costs.

4. Who pays the taxes while I’m renting?

FC Help pays the property tax.

5. What about insurance?

FC Help pays to insure the house. However, we ask that you purchase renter’s insurance, which is significantly less costly than homeowners insurance.

6. Who repairs the house while I’m renting?

You must maintain the property, but FC Help covers any structural damage that occurs and is typically covered under tenant-landlord agreements.