Why should I choose ByDesign™?
ByDesign Financial Solutions™ has provided consumers with financial counseling and education workshops for over 40 years, ByDesign™ is a well-established, reputable and trusted non-profit resource for low- and no-cost services.

Our services are tailored to meet your specific needs. Our NFCC-certified counselors are available face-to-face, over the telephone, and via the Internet, to review your personal situation and develop a course of action to help you achieve your financial goals.

How can you help me?
We help individuals and families to both prevent and solve money management difficulties.

Confidential, one-on-one counseling sessions (by phone, via the Internet, or in person) with a certified counselor are available to assist you with housing-related issues, debt, credit problems, imminent bankruptcy, or identity theft situations. We also offer workshops on a variety of topics, as well as self-help educational products.

Although we are best known for our services for people with severe debt problems, the majority of our educational workshops are designed to help people avoid financial difficulties by learning how to budget, use credit wisely, save and invest for the future, take action likely to prevent becoming a victim of identity theft, or learn the steps to take before buying your first home.

How are your services designed to meet my needs?
ByDesign™ offers a wide range of financial solutions tailored to meet your needs. Whether you need help with a debt problem, buying your first home, interpreting your credit report or understanding the implications of a reverse mortgage, our professional counselors are here for you. Your counseling session may result in various action plans depending on your particular situation. ByDesign™ also provides workshops on a wide variety of personal finance literacy topics. For assistance in person, we have convenient office locations throughout California and most of our services are also available via phone or Internet.

What are your fees?
Please refer to our Fee Schedule. We have no hidden fees, per creditor charges, set up fees, and we don't request or accept "donations" from our clients.

How are you funded?
Our funding comes from grants, foundations, voluntary contributions from creditors who participate in our debt management plans, donations from financial institutions and client fees.

Some of our funding comes from voluntary contributions from creditors who participate in Debt Management Plans (DMPs). Since creditors have a financial interest in getting paid, most are willing to make a contribution to help fund our agency. These contributions are usually calculated as a percentage of payments made through the DMP - up to 10% of each payment received. However, accounts with creditors are always credited with 100% of the amount paid through us and we will work with all creditors, regardless of whether or not they contribute to our agency. Our DMPs serve the dual role of helping individuals repay their debts and helping creditors collect the money owed them.

California Residents
We serve California residents with in-person counseling and educational workshops in the regions surrounding Los Angeles, Sacramento, Stockton and Fresno. We can also assist California residents at large with most of our services by telephone. Select interactive educational courses are also available to consumers throughout California through our web site.

We do not offer our debt management service, housing pre- and post- counseling, default/foreclosure counseling or rental counseling, however, to residents outside of California.

Our Personal Finance Management program is available to residents across the nation through our web site, as are the educational products in our online storefront.

If you have a question as to whether or not we can assist you, please call or email our Customer Service Department at (800) 750-2227 or csrhelp@bydesignsolutions.org, repectively.

What are your hours of operation?
Our Customer Care representatives are available by phone from Monday- Thursday, 7 a.m. to 7 p.m.; Friday, 8 a.m. to 7 p.m. and the third Saturday of the month from 8 a.m. to noon (Pacific Standard Time). You may also contact our Customer Service Department by sending an email to csrhelp@bydesignsolutions.org.

How can I get help most quickly?
Although we can assist you with most matters over the Internet, if your need is urgent, please call our Customer Service Department, during business hours, at (800) 750-2227.

Budget and Credit Counseling

What does it cost?
A budget and credit counseling session is free.

How long does it take?
A budget and credit counseling session usually last about one hour.

What should I bring to my budget and credit counseling session?
To get the most from your counseling session, it is very important to have the following information on hand:
• Current statements from your creditors
• Current paycheck stub or proof of income
• A good idea of what living expenses you have (rent, utilities, food, etc.)

If you do not have your credit information on hand, we can print a credit report for you and our counselor can review the information with you.

Which debts can you help me with?
Our counselor will address all debts on your credit report and other debts such as IRS, collection accounts and medical bills which may not appear on your report. Some debts, however, must be paid directly and may not be included in a debt management plan, such as child support and students loans. Our counselors will work hard to provide you with your overall best options for paying off your entire debt load.

What do you do to keep my personal information (for example, name, address, phone number, and financial information) confidential and secure?
ByDesign keeps clients personal information strictly confidential and secure, as outlined in our privacy policy. We use current firewall technologies to protect client data from outsiders, as well as passwords and permission levels internally, to restrict access to our proprietary network.

We have developed and implemented policies and procedures to be in full compliance with all federal and state laws concerning privacy.

Will the fact that I sought credit counseling hurt my credit?
No, not at all. If you do not join a Debt Management Plan, the credit bureaus will never know that you sought credit or debt counseling.

Debt Management Plans
(prospective clients)

Will a Debt Management Plan damage my credit report score?
Repayment of unsecured debt directly or through a Debt Management Plan (DMP) will, usually, result in gradual improvement in a consumer's credit score. Most, but not all, creditors show delinquent accounts as current after the creditor accepts the DMP and three consecutive payments have been received.

Per Fair Isaac & Company, the company that created the FICO scoring system formula (a system for quantifying a consumer's credit worthiness), the formula ignores any reference to enrollment in a Debt Management Plan that may be in a consumer's file.

How credit reports or access to new credit will be affected in the future depends on the view of the prospective creditor. Some creditors will see enrollment in a DMP as negative history, but others will regard it as a sincere and responsible attempt to satisfy one's financial obligations.

What will enrollment in a Debt Management Plan cost me?
There is no enrollment fee for a Debt Management Plan. The monthly fee for ByDesign™ to administer a Debt Management Plan for you is 8% of monies disbursed by us monthly to your creditors up to a maximum of $35 per month, which ever is less.

Developing money management skills is a crucial aspect of all debt management plans (DMPs). We want our DMP clients to be successful during and following their participation in a DMP. To enhance the effectiveness of our counseling sessions, for those clients that are enrolled in DMPs, our financial education programs are incorporated into the plan. These effective programs teach consumers how to budget, manage credit and routinely set money aside for financial goals and savings. A maximum $50 initial fee covers all counseling and educational services and provides for free access, during the life of the DMP, to the following workshops: Personal Finance Management, Financial Firsts, Alternatives to Foreclosure and First-Time Homebuyers. Our comprehensive financial education program, "Financial Education Toolkit," also includes the texts for the Personal Finance Management, Identity Theft Resolution and Financial Firsts books. Certification in the Personal Finance Management program is also included and available in workshop and online formats.

How long will a DMP last?
Clients who complete the DMP will repay 100% of what they owe in 3 - 3 1/2 years on average; in some cases the repayment time can take 48-60 months. During your counseling session, your counselor will estimate the payoff time.

Will I be able to get credit again after being on a DMP?
For the majority of clients on a repayment program, the answer is yes, though some creditors using risk-based-pricing may at first attempt to charge a little higher rate. That is why it is important to shop around for the best rate and terms to meet your individual needs. Many of our clients though actually find their credit better at the point of successfully completing their program than when they began, resulting in a higher credit score, and offered better interest rates.

When you enter a ByDesign™ Debt Management Program (DMP), ByDesign™ does not report your participation to credit bureaus. However, each creditor deals with ByDesign™ clients in a different way. Some creditors may report that your account is included on a DMP -- which in and of itself is not considered negative, according to the bureaus. Creditors may report your account as current when they receive our proposal, while some wait until they have received three consecutive payments or more through ByDesign™. They acknowledge that you are honoring your debts, rather than taking the perceived easier route of bankruptcy; and after seeing a consistent payment history through ByDesign™, may look at you as a better credit risk than the typical consumer.

Other creditors will consider your account delinquent (not meeting the original contractual terms) and will continue to report these delinquencies even though you are working with ByDesign™. They will accept the payment and stop calling you, but they may still report negative information to the credit bureaus. It is up to the individual creditor to make changes in the "History of Payment" column on your credit report. ByDesign™ cannot remove information from your credit report, but we can assist you in contacting your creditors for a review of your account, or supply a letter to summarize your consistent paying history, which is most critical to your program success and re-establishing credit.

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Debt Management Plans
(current clients)

My creditors keep calling me. What should I do?
Expect the calls to continue for the first 90 days of the Debt Management Program as creditors may take that long to process the proposals that we send them. In addition, some creditors will not give you their interest rate concession until you have made three consecutive payments. During this period, give any creditor who calls you your client number, our phone number and your expected deposit date. Once the 90-day period has ended, the call volume from your creditors will usually stop.

What happens when I pay off an account? Will my deposit decrease?
The goal of the Debt Management Program is to get you out of debt within 36-60 months. When you pay off an account, the payment that was going to that account will be applied to another account -- either to an account which has the highest interest rate or to the creditor with the smallest balance. If all else is equal, we'll divide the extra amount amongst all of your remaining creditors.

To pay off your debt as quickly as possible, your monthly deposit should stay the same.

Should I notify ByDesign™ if I am going to miss a payment or am not able to send in the full amount?
It is very important that you immediately contact a ByDesign customer care representative to notify us that you will miss a payment or only make a partial payment. Please provide a brief description of the problem so that the information can be notated on our file and we can convey the information to your creditors.

If you miss payments or make partial payments, late or past due fees may be charged by your creditors for the months a full payment was not received. Additionally, if you miss a payment or make partial payments over two or more months, your creditors may discontinue your debt management plan with them, ending the interest rate and other concessions associated with the plan.

How do I make changes to my electronic withdrawals?
If you are enrolled on the ACH program for automatic electronic withdrawals of your payments, you can make changes in the amount to be withdrawn by calling one of our customer care representatives and requesting a change. Or you may complete and submit the form on our web site. We must receive your completed change form at least 10 days prior to the scheduled payment withdrawal.

Can I add new accounts on to my existing plan?
Accounts that were not included on the Debt Management Plan originally may be added at a later date. However, please note that some creditors will automatically reject the addition of an account to the plan for certain reasons such as:

Also, if you add accounts on, the payment on the new account will be accelerated to pay the new account off within the same time frame left on your original DMP agreement.

Can I change my payment due date at any time?
Yes. But you must also make sure that you notify your creditors to change their due dates to correspond with the new payment due date you want with ByDesign™. This will insure that payments get credited in a timely manner and that late payment fees are not charged.

How often should I send ByDesign™ my creditor statements?
In order for us to have the most accurate record of the outstanding balances for all your accounts, we ask that you send in your statements at least every six months. You may either fax or mail them to us. We will update your balances immediately.

It is important for you to continue to review your creditor statements, throughout your debt management plan. You should compare your ByDesign™ account statement with your creditor statements each month to insure that payments are being posted in a timely manner.

What can I do if my circumstances change and I can no longer maintain the same payment due to a loss of income or increased expenses?
We offer re-counseling for all individuals on the program that may be struggling to meet the original payment amount due to higher expenses or decreased income. You can call a customer care representative to schedule a re-counsel appointment with any one of our certified counselors. The counselor may be able to obtain agreement from your creditors to temporarily reduce your payments until you are able to resolve some of your difficulties and get back on track again.

Can I request that extra funds (that I send or that result from one of my creditors being paid in full) be sent to a particular creditor?
Yes. We must have disbursement instructions in writing and we must receive the requests in advance of our disbursement date so that we have time to make the changes. A "Disbursement Instructions Request Form," may be completed at any one of our offices. It will be forwarded to our Los Angeles office where payments are posted and processed. You may also download this form here.

Once I join the DMP, may I continue to use credit occasionally?
If you wish to remain on the DMP, you cannot obtain any "new" credit or continue using credit cards that are included in the repayment plan (use of business cards not included in the plan may be permitted--speak with your counselor for details). Using credit outside of these parameters can result in creditors automatically revoking concessions or dropping you as a client.

Can I review my account information during non-business hours?
Yes. You will have access to your account information at any time through our web site. Just register under client log in and you will have access to your latest account information. You can even update and change your balances yourself, if needed.

I'm on the DMP, but haven't received any newsletters. What should I do?
Our Take Control newsletter is a quarterly printed publication and will be mailed to you automatically four times a year.

Do you offer any educational support for people on DMPs?
We offer many workshops that provide clients with helpful information and money management skills to allow them to budget and manage their cash flow successfully while on the DMP. Several of our core classes are available online as well as in the community. Please click here for a full description of our educational workshops.

I am nearing the completion of my debt management plan. In six months, I expect to have paid off my debt in full. Is there anything I can do now to start rebuilding credit and improve my credit report?
Congratulations on your achievement! The place to start is with your credit report. Before taking the steps to improve your credit, you need to know where you currently stand.

Obtain a copy of your credit reports--either free through the provisions of the FACT Act or through ByDesign.

Once you've seen your credit reports, you'll need to dispute any incorrect information on the reports by challenging such information with the credit bureaus. You can do this over the Internet (through each credit bureau individually). You can also meet with a counselor for an explanation of your reports (our "Credit Report Review" service) or you may take our Credit Report Review class to learn how to clean up mistakes on your reports yourself.

If you've had credit problems in the past, consider earning our Personal Finance Management certificate. You may either take the Personal Finance Management course in person or over the Internet. Not only will you gain a well-rounded education in money management, but you may also earn a Personal Finance Management certificate. With the certificate, you may write and submit a 100-word statement to your credit bureau explaining how you have gained new money management skills through taking this comprehensive course. At ByDesign we maintain a database of everyone who has passed the course and earned the certificate and we will verify your certification with any creditors who call to inquire. Some creditors may look favorably on this certification when considering your applications for credit.

To start rebuilding your credit, you may obtain a secured credit card while still on a DMP. A secured card is issued when you deposit money into an account in a financial institution. Many secured cards start with a deposit of between $250-$500. When you use the card, you are allowed to charge up to 100% or 150% (depending on your card) of the deposit and make monthly payments so that your balance doesn't exceed the allowable line of credit. You need to make monthly deposits into the account and use it sparingly and carefully. To shop for the best rates on secured cards, visit www.bankrate.com. Before applying for any secured card, make sure to ask if the issuing company reports activity to the credit bureaus. If they do not, find another credit granter who will (otherwise you will not be effective in building a positive payment history with the credit bureaus).

The fact that you have been paying down your debt over course of DMP, in and of itself, will improve your credit standing. The lower your debt, the better your credit report. Other ways to improve your credit report and score include paying all of your bills on time, increasing your savings and assets and limiting applications for new credit. Prior to obtaining new cards, our counselors strongly suggest that you create an emergency savings fund to cover three to six months of living expenses, so that you will not be forced to use credit the next time you encounter an unexpected expense, needlessly running up the balance.

You've come a long way already. Now take the steps you now to improve your credit further and remember that after you have paid off your DMP, many creditors will take off any mention of you being on the DMP after a period of 3-6 months. Good luck!

Identity Theft

What exactly is identity theft?
Identity theft is the obtaining or use of a person’s identifying information without authorization.

How do the thieves get the information?
Identity thieves use a wide variety of tactics to get information including discretely copying account numbers, stealing mail, stealing trash (dumpster diving), asking for confidential information under false pretenses (phishing and telemarketing scams), computer spyware, hacking into databases, electronically copying credit card magnetic strip information (skimming), and taking discrete pictures of credit card or financial account information.

Why is identity theft such a big problem now?
Electronic reading and recording devices and electronic storage of information has made it easier for thieves to access, read and record (i.e. copy) large amounts of data quickly. The stolen information is then used to perpetrate fraud, usually credit card and check fraud.

What is preventing law enforcement from arresting the growth in identity theft cases?
Some identity theft rings have been broken up with arrests made. For example, an arrest was made with regard to the widely publicized ChoicePoint data leak. However, in many individual cases, it is not always easy to establish who perpetrated a fraud. If a person uses an account opened under a false name, SSN, and address, it may not be easy to track that individual down.

What is law enforcement overall doing about identity theft?
The Federal Trade Commission (FTC) has some excellent information on its web site covering identity theft issues, including a consumer complaint form. The information inputted into the complaint is fed into the Consumer Sentinel Database, which is accessed by both local and national law enforcement agencies throughout the nation including the Dept. of Justice, FBI, Secret Service, and Treasury Dept., to help spot patterns in ID theft cases.

How might I find out about an identity theft problem?
Consumers might find out about an identity theft problem when they apply for a home loan, try to buy a car, or ask for a new line of credit. Consumers may also discover a problem when they review a copy of their credit report, when they apply for a job or discover fraudulent expenses in credit card bills.

What can I do about identity theft once discovered?
There are FIVE critical steps to overcoming an identity theft problem.

This will be very time-consuming. Is there anyone who can help me with this problem?
Because the identity theft resolution process can be overwhelming, ByDesign™ offers several services to help those with identity theft problems. We offer individualized counseling and an Identity Theft Resolution Guide to help victims understand the problem and know exactly what to do about it. We also have Identity Theft Prevention and Resolution workshops that cover the information in a group setting. For even greater assistance, we provide a professional resolution service that, via special power of attorney, provides our clients with complete assistance, from placing the fraud alert to writing the dispute letters and following up with the credit bureaus, if needed.

What if the police do not want to take an identity theft report?
Given the growing problem of ID theft, police are more sensitive to the need for a police report to stop the fraud. However, if you run into difficulty, most police will take a report if reminded that under the new Fair and Accurate Credit Transactions Act (FACT Act), a police report is required to have the credit reporting agencies block disputed data in ID theft cases. If you still have difficulty, contact your local Sheriff’s office or District Attorney’s office.

Should I cancel all of my credit cards?
This is not necessary if there has been no fraudulent activity on any of your accounts. However, you should place a unique password on each account (something new, not your mother’s maiden name or your pet’s name).

Should I change my Social Security Number?
No, that only confuses the issue as to who you really are. Also, with a new social security number, you may not be able to get credit, as there is no credit history. Alternatively, your new number may be linked with the old and therefore subject to potential theft as well.

What if someone stole my checks?
Notify your financial institution immediately and close the account. Transfer your funds into another account. Contact all merchants with whom you have outstanding checks and make alternative payment arrangements. Contact your financial institution’s check verification company and ask them to stop all of your checks. File a police report and an FTC consumer complaint.

Will I be responsible for the NSF charges?
Your financial institution will usually waive NSF fees if it is notified immediately of the stolen checks. Merchants may waive their fees if they are notified of the problem and paid before the check bounces.

What if my DMV record has fraudulent data on it?
You should file a police report immediately. Next, prepare a statement describing the fraud. It is important to keep detailed records describing the issue and the steps you have taken to correct it. Be sure to keep a listing of names and numbers of anyone you contact in order to rectify this situation. If a citation was issued in your name, check on the time and day when the citation was given. If you were at work, you can get a letter or copy of your timesheet from your employer that confirms this. If you become aware of the court date set for the citation, you can take with you to the court your employer’s letter or copy of your timesheet as evidence that you were at work when the citation was issued. Finally, contact your Department of Motor Vehicles’ (DMV) fraud assistance unit. In California, call the California DMV fraud unit, toll-free, at 866-658-5758.

How often should I review my credit report?
At least one a year. However, every six months is better.

How can I get a free copy of my credit report?
The Fair and Accurate Credit Transactions Act (FACT) requires the three Credit Reporting Agencies to provide one free credit report to each consumer every year. You may request your free copy of your credit reports from AnnualCreditReport.com online at www.annualcreditreport.com and via telephone at 877-322-8228.

Should I get a credit report from all three major credit reporting agencies?
Generally speaking, it is best to view all three reports at once so that you are fully aware of what is contained in each. This is especially true if you are planning to borrow in the near future. However, you may also want to view one agency report every 4 months thus enabling you to view all three for free over the course of a year.

How do I read my credit reports?
Each credit reporting agency provides its reports in a different format. Sometimes a key is provided to help consumers understand the data contained in the report. Consumers may also elect to use a reputable credit counseling agency to review the credit report with them and explain it in detail. ByDesign™ provides this service and can order your reports, including credit scores, for you.

Credit Report Review

What is a credit reporting agency?
A credit reporting agency is a for-profit company that gathers, stores and updates information on consumers. They keep personal information such as names, addresses, previous addresses and employers. They note any information about you that is available in the public record and which might have a baring on your financial stability, such as judgments, bankruptcies and liens. They also keep and update information on your use of credit, the kinds of credit you have and how you use it. They track how much debt you carry, the frequency and amount of your payments and the new applications for credit that you submit.

Creditors use this information to determine whether or not to offer you credit and what terms (interest, fees and penalties) should be provided to you.

Credit reporting agencies deal in information. They have no vested interest in whether or not you can obtain credit or are denied credit. Their main concern is the accuracy of the information that is in their files because their subscribers (credit grantors) pay for accurate data.

What are the main credit reporting agencies?
Trans Union, Equifax, Experian are the biggest. They do not share information with each other, except for consumer "fraud alerts," and they are competitors, not government agencies.

Can I obtain free credit reports?
You can always obtain a free credit report if you have been turned down for credit, a job, insurance or rental property within the last 60 days because of information on your credit report or if you have been a victim of identify theft.

You are also entitled to one free credit report each year from each of the three major credit reporting agencies. To obtain your free reports, go to www.annualcreditreport.com or call (877) 322-8228. Hearing impaired consumers can access the TDD service at (877) 730–4104. You will have to pay a small fee (between $5-$7) to get your credit scores.

Why should I access my credit reports?
A recent U.S. Public Interest Research Group study found that nearly eight in 10 credit reports have factual errors and one in four have errors serious enough to result in a borrower being denied a loan.

When does negative information drop off my report?
Most true negative information (30-, 60-, 90-day late payments, charge-offs, etc.) may legally remain on your credit reports for seven years from the date of the last transaction on the account. Bankruptcies and judgments generally remain on a consumer's credit report for 10 years. If the negative information has been left on the credit reports for longer than these times, you may write the credit bureaus and request that the outdated negative information be removed.

What do the codes in my credit report mean?
I = installment debt
R = revolving debt
M = Mortgage debt
R 1-9 = (best 1 to worst 9)
Charge off = means the creditor has written the account off as a bad debt for tax purposes but this does not mean you are no longer responsible for the debt.
Our credit counselors will explain other codes used in credit reports.

Should I close accounts I no longer use or if I feel I have too many accounts?
Closing an account is often not a good idea. Closing an account may negatively affect up to 45% of the factors that make up your score. It will shorten your credit history (15% of the score) and reduce your overall credit availability thereby increasing your outstanding debt to available credit ratio (30% of the score).

Home Pre-purchase

What do you charge for pre-purchase/first-time homebuyer counseling?
Pre-purchase/first-time homebuyer counseling is free of charge.

What is a credit score?
A credit score is a number determined by a statistical model to predict the likelihood of a borrower repaying a credit obligation. It is based on previous credit performance, current level of indebtedness, amount of time credit has been in use, pursuit of new credit and types of credit available. The goal of a credit score is to rank an individual in relation to others and to industry standards for the purpose of making lending decisions. The higher the score, the more likely the borrower is to pay his/her bills on time. Thus, lenders offer borrowers with higher scores better interest rates and stipulations.

Credit scores range from approximately 300 (lowest) to 850 (highest), as each credit bureau has its own scoring model with different highest and lowest scores.

How high a credit score do I need to purchase a house?
That depends on the mortgage program you choose. There are many programs available that accept less than perfect credit and still offer good interest rates. However, a lower credit score can result in your paying a higher interest rate. Make an appointment to meet with one of our housing counselors to undertake a credit report review. At that time our counselor will give you a plan for improving or correcting your credit report, to help you increase your score.

Should I close all/any of my credit card accounts?
Not necessarily. This will depend on your personal situation. In some cases, closing your accounts may actually decrease your credit score. Our counselor can help you determine what best to do.

Will lenders require all my debts to be paid off before I buy a house?
Mortgage lenders do not normally require that any debts be repaid in full. However, the minimum payments required for any outstanding debts will impact your debt to income ratio and may lower the amount of mortgage loan for which you will qualify.

How high of a mortgage loan do I qualify for?
This will depend on your gross income and outstanding debt obligations. Different lenders have different debt to income ratios they find acceptable when they are asked to pre-qualify you for a home loan. When you are ready to purchase a home, the first step is to develop a budget to establish if you can afford to make the payment on the loan for which you qualify. ByDesign can help you do this in a counseling session or in a first-time homebuyer workshop.

You may be able to qualify for a mortgage loan amount which is higher than you can truly afford. A comprehensive analysis of your budget will enable you to establish how much house that you can afford.

Home Post-purchase

If I refinance my home, will my taxes go up?
No, in general, refinancing your home does not affect your taxes. If you take out cash and increase your principal, you may pay more interest on your mortgage over the year and that interest is tax-deductible.

Will my interest rate go up if I refinance my house?
Your new interest rate will depend upon current mortgage interest rates, the type of loan you select, your current credit report and score and your current debt to income ratios.

My lender sold my loan; can the new service provider raise my interest rate?
When a mortgage company transfers your loan to a new service provider, the terms of the loan stay the same. When your loan is transferred to a new service provider, you should receive a letter from your previous mortgage loan provider advising you that the loan servicing has been transferred. Never forward your payments to a new servicing company unless your current loan company has notified you. If you have any questions, call your old servicing company to confirm that you should be paying the new company.

Should I get a consolidation loan to payoff my creditors?
You should assess your whole financial situation first and consider all of your options. Make an appointment with one of our certified counselors to assist you in an analysis of your financial situation and to discuss the various options for resolving your debt problems as quickly as possible.

Mortgage Default Counseling

What happens if I miss my mortgage loan payments?
If you miss mortgage loan payments, foreclosure on your property may occur. Timing is critical in these matters, so call ByDesign™ for assistance as soon as possible.

When you meet with one of our certified housing counselors, each of these options for which you are eligible will be fully explained. (Depending on your loan and circumstances, some of these options may not be available to you.)

Call (800) 750-2227 to make an appointment with one of our certified housing counselors to research these various options and to better understand the timeline for foreclosure.

Reverse Mortgage Counseling

What is a reverse mortgage?
A reverse mortgage is a type of home loan for seniors (at least 62 years of age) that allows a homeowner to convert a portion of their home equity into cash with no monthly payments required until the client leaves the home permanently or goes to a nursing home for 12 months in a row.

Can I qualify for a reverse mortgage?
To be eligible for a reverse mortgage, you must be 62 years of age or older, own your home outright or have a low enough mortgage balance so that a reverse mortgage will be able to pay it off. You also must live in your house. You are required to receive counseling from a HUD-approved counseling agency prior to closing your reverse mortgage loan.

Are there circumstances in which I could lose my home?
Your reverse mortgage lender cannot take your home away as long as the home remains your primary residence, you pay your taxes, homeowners insurance, and maintain the property in good condition. No repayments on the loan are required during this time.

How can I receive my reverse mortgage payments?
There are five options:

Will I still have an estate that I can leave to my heirs?
If you vacate your home for more than 12 consecutive months or die, you or your heirs must repay your reverse mortgage loan and all interest and other fees. The remainder of the equity, if any, belongs to you or your heirs. There is no prepayment penalty on the reverse mortgage. Your other assets are never affected by this debt. You will never owe more than the market value of your home.

Rental Counseling

How often can my landlord raise my rent?
If you have a lease it cannot be raised until the end of the lease. If there is no lease it can be raised as often as the landlord wishes as long as he gives proper notice-at least 30 days advance written notice if the increase is 10% or less. Sixty days if the increase is greater then 10%.

When can a landlord enter my home?
Under normal circumstances, they must give reasonable advance notice. They can enter only during normal business hours on weekdays, usually between 8 a.m. and 5 p.m.

General FAQs