Home > Homeownership Programs > Seattle Foreclosure Prevention Program

Seattle Foreclosure Prevention Program can help homeowners avoid default and work out repayment plans in order to stay in their homes, or gain enough time to sell their homes on their own terms. The program provides financial and mortgage counseling, assistance in working with lenders and stabilization loans of up to $5,000 and is administered by non-profit partner organizations.

Similar to many areas of Washington state, foreclosures are on the rise in Seattle. In an effort to address this increase, the Office of Housing began the Foreclosure Prevention Pilot Program in 2008. Since its inception, the program has assisted more than 30 homeowners who might otherwise have lost their homes to foreclosure. The program helped to stabilize their financial situation, allowing these families to remain in their homes.

The program is administered by the non-profit organizations Urban League of Metropolitan Seattle and Solid Ground. Counselors can help struggling homeowners by coordinating:

• Financial and mortgage counseling
• Assistance negotiating repayment plans with lenders
• Stabilization loans of up to $5,000

The program will give homeowners two options:

• Avoid default and work out a repayment plan to stay in their homes
• Gain enough time to sell their homes on their own terms

Find out if you qualify
To qualify for the program, household income must be below 80 percent of the area median income (see current eligibility limits). Homeowners must also prove the capacity to afford the mortgage for the long-term.

Homeowners in need of assistance should contact Solid Ground or the Urban League directly to see if they qualify:

• Urban League
  (800) 368-1455
• Solid Ground
  Mortgage Hotline:
  (206) 694-6766
  Open Monday, Wednesday and Thursday from 10:30 a.m. to 4:30 p.m.
  All screenings and appointments must go through the hotline.
  Counselors are not able to take walk-in appointments.

Mortgage and Default Counseling
A number of nonprofits assist homeowners facing foreclosure with mortgage default and foreclosure counseling, including the following:

• El Centro de la Raza
  (206) 957-4610
• International District Housing Alliance
  (206) 623-5132
• Solid Ground
  (206) 694-6766
• Urban League of Metropolitan Seattle
  (800) 368-1455

See also the Washington Foreclosure Prevention Resource Guide, available from the Seattle-King County Asset Building Collaborative Foreclosure Prevention Action Team website. This guide was designed to provide practical tools, information and resources to help homeowners dealing with foreclosure issues.

State Foreclosure Prevention Resources
The Washington State Bar Association, together with the Northwest Justice Project and the Department of Financial Institutions, now offer the Home Foreclosure Legal Aid Project.  The program connects volunteer lawyers who have agreed to provide pro bono representation with homeowners experiencing legal problems related to foreclosure.  For more information on the program call 877-894 HOME (4663) or visit the website here.

Washington State Department of Financial Institutions provides a vast amount on information on avoiding foreclosure rescue scams, mortgage counseling and navigating the foreclosure process.

Federal Programs
The Obama Administration announced the Making Home Affordable program in February 2009. This program provides resources to homeowners who are making good-faith effort to make their mortgage payments. An overview of this program is available on the federal Road to Stability site. Detailed information and self-assessment tools are available at Making Home Affordable.

HOPE NOW is an alliance between counselors, mortgage companies, investors, and other mortgage market participants. This alliance will maximize outreach efforts to homeowners in distress to help them stay in their homes and will create a unified, coordinated plan to reach and help as many homeowners as possible. View Real People, Real Stories: Avoid Foreclosure Rescue Scams, produced by the Federal Trade Commission.

Questions for the Office of Housing?

If you have questions about any of the City of Seattle homeownership programs, contact our reception desk at (206) 684-0721.