300 West Leonard Street
Pensacola, Florida 32501
850.434.5456
Delinquency and Foreclosure Policy and Procedure
Updated February 2013
Payments are due on the first of each month. There is a grace period of 5 days; a payment is considered
on time if it has been received by the 5th of the month. A payment is late if it is postmarked on the 6th or
later when received by mail, or if it is presented in person at the Habitat office on the 6th or later.
Pensacola Habitat for Humanity will honor the terms of earlier mortgages signed with a 15-day grace
period.
Once payment is 16 days late, Pensacola Habitat for Humanity will send a reminder
letter (Attachment 1) to the homeowner reminding them that we have not received the
scheduled payment.
Once payment is 30 or more days late, Pensacola Habitat for Humanity will write the
homeowner a letter (Attachment 2) indicating to the homeowner that we have not
received the scheduled payment. Pensacola Habitat for Humanity may also follow up
with a phone call. The letter will state what is owed, including late fees. The homeowner
will be asked to pay the delinquent amount immediately. This letter will also include the
warning that the mortgage is considered in default and could be charged attorney fees and
interest on the unpaid balance.
When payment is 45 or more days late, Pensacola Habitat for Humanity will refuse
any payment by the homeowner, and the homeowner will be required to attend the
Homeowners Stabilization Workshop (Attachment 3).
When payment is 60 or more days late, Pensacola Habitat for Humanity will attempt
to contact the homeowner by telephone, as well as send another letter (Attachment 4)
informing the homeowner that he/she is late by 60 days or more, and outline the options
available to Pensacola Habitat for Humanity to cure the default. This letter will suggest a
meeting date at Pensacola Habitat for Humanity office to discuss the homeowner’s
payment problems. The homeowner will be given a specified period of time to respond
(14 days) to the letter AND 45 days to cure the default.
When payment is 105 days or more late, Habitat will turn the file over to its attorney
who will initiate foreclosure action once the past due has become 120 days past due.
Note that there will never be interest charged on late fees or collection fees.
At any time during the delinquency Pensacola Habitat for Humanity can make payment arrangements as
follows:
1. Homeowner may pay balance owed in full and return to making regularly scheduled
payments, after attendance at a Homeowners Stabilization Workshop if delinquency is
greater than 45 days.
www.pensacolahabitat.org
300 West Leonard Street
Pensacola, Florida 32501
850.434.5456
2. Pensacola Habitat for Humanity may enter into a formal agreement to allow the
homeowner to repay the arrearage over a specified period of time. (Attachment 5)
Additional Items:
1. Pensacola Habitat for Humanity will not accept partial payment except as stated on
the signed Repayment Agreement. This will include regular monthly payments.
2. Repayment agreements that are defaulted will result in immediate legal enforcement
of the mortgage.
3. Pensacola Habitat staff is only authorized to make a repayment agreement terms 12
month or less.
4. Any exceptions to the Delinquency and Foreclosure policy must be approved by the
Delinquency Committee.
Once foreclosure is initiated, the homeowner has a certain amount of time set by statute to stop the
foreclosure by becoming current or by paying off the full balance of the loan. At Pensacola Habitat for
Humanity’s option, Pensacola Habitat can stop foreclosure proceedings and work out a payment
arrangement with the defaulting homeowner. The agreement establishing this payment arrangement will
include:
(1)
a definite time frame within which the homeowner must become current;
(2)
that in the event of default under the new plan, Pensacola Habitat for Humanity is
able to resume foreclosure immediately (as allowed by applicable law). This
allows Pensacola Habitat for Humanity to pick up the foreclosure proceedings at
the point Pensacola Habitat for Humanity stopped them and decided to work with
the homeowner. Otherwise, Pensacola Habitat for Humanity may have to start
the process all over again, thus taking extra time and costing more money; and
(3)
that the underlying note and mortgage will remain in full force and effect, and
that the agreement does not constitute a waiver of any future defaults. This
preserves Pensacola Habitat for Humanity’s rights in the event of future defaults
after the homeowner has completed the payment arrangement requirements
www.pensacolahabitat.org
300 West Leonard Street
Pensacola, Florida 32501
850.434.5456
ATTACHMENT 1
[TO BE PRINTED ON PENSACOLA HABITAT FOR HUMANITY LETTERHEAD]
[ Date ]
[ Homeowner ]
[ Address ]
[ City ], [ State ] [ Zip Code ]
Dear [ Homeowner ]:
Our records indicate that your mortgage payment is past due. The last payment received was on [ Date ]
for your [ Month ] payment.
As of today, your past due balance is as follows:
[ Month ]
[ Payment ] (includes $25 late fee)
Please pay this amount immediately to stop further action on your account.
As a reminder, your mortgage payment is due on the first of each month and is considered late on the
second. You are assessed a late fee of $25.00 for any payment received after the fifth.
If you have any questions, please contact me at (850) 434-5456.
Sincerely,
[Authorized Person]
[Title]
www.pensacolahabitat.org
300 West Leonard Street
Pensacola, Florida 32501
850.434.5456
ATTACHMENT 2
[TO BE PRINTED ON PENSACOLA HABITAT FOR HUMANITY LETTERHEAD]
[ Date ]
[ Homeowner ]
[ Address ]
[ City ], [ State ] [ Zip Code ]
Dear [ Homeowner ]:
According to our records, your mortgage payments are [ Months ] past due in the amount of [Amount
Due ].
Your mortgage agreement with Pensacola Habitat for Humanity, Inc. states that you are “in default” if
your payment does not arrive in full by the 1st day of each month. If you are in default, Pensacola
Habitat has several options, including:



to demand full payment of your mortgage balance at once
to charge 12% interest on the remainder of your debt
to foreclose and take possession of your house
This letter is to remind you of your partnership agreement to repay the cost of building your house. Your
payments are used to continue our work of building simple decent housing for other families in need here
in Escambia and Santa Rosa counties.
Please contact [Collection Specialist] by XXXX [date- 14 days] at (850) 434-5456 to schedule an
appointment to discuss your mortgage repayment options.
Sincerely,
[Authorized Person]
[Title]
www.pensacolahabitat.org
300 West Leonard Street
Pensacola, Florida 32501
850.434.5456
ATTACHMENT 3
[Date]
[Homeowner]
Subject – Mortgage Delinquency
Our records indicate your mortgage is currently in default. You are in serious danger of legal action. If legal action
has already been started, we are offering you a chance to stop that action.
Pensacola Habitat for Humanity is offering you an opportunity to work out repayment arrangements.
In order for us to make repayment arrangements, you are required to attend one of the following classes:
Saturday, January 26, 2013 @ 10:00 a.m.
OR
Tuesday, January 29, 2013 @ 6:00 p.m.

Classes will last 3 hours

The classes will be held at the Pensacola Habitat for Humanity Main Office Location –
300 W Leonard St, Pensacola, FL

Seating in the classes is limited – YOU MUST SIGN UP TO ATTEND – Drop-ins will not be accepted.

PROOF OF INCOME MUST be provided when you sign up for the class. If you do not provide proof of
income to Pensacola Habitat BEFORE your scheduled class time, you will not be allowed admittance.

NO SHOWS WILL NOT BE RESCHEDULED AND LEGAL ACTION WILL START OR CONTINUE.

YOU MUST BE ON TIME – LATECOMERS WILL NOT BE ALLOWED ADMITTANCE.

You will receive a CERTIFICATE as proof of attendance and verification of income.

After the class, you will be able to schedule a meeting with one of the Finance staff in order to make a
repayment agreement.
We strongly encourage you to take advantage of this opportunity. Please contact the office @ (850) 434-5456 and
speak with [Collection Specialist] to arrange sign up and get details about the opportunity as soon as possible.
Sincerely,
[Authorized Management]
[Title]
www.pensacolahabitat.org
Pensacola Habitat for Humanity, Inc.
Policies and Procedures
ATTACHMENT 4
[ON PHFH LETTERHEAD]
DATE
Re:
Dear
:
This letter is to notify you that you are in default of your Promissory Notes and Mortgage to
Pensacola Habitat For Humanity, Inc., for failure to make the ********, 20**, mortgage payment in full
and all payments thereafter.
Based on your default under the terms of the notes and mortgage, Pensacola Habitat for
Humanity, Inc., has elected to accelerate the balance of the mortgage, and to declare the outstanding
balance of $************* to be due and payable without further notice or demand, including 12%
interest from ************* to **************** in the amount of $************, plus late fees of
$************ for the months of *************, through ****************, escrow payments of
$**************** for the months of *************, through ************, plus attorneys fees in
the amount of $***********, for a total of $****************.
You may reinstate the mortgage by paying the following by *****************:
Description
Amount
Interest through ***********
$
Late
Fees
for
************,
*********************.
through $
Delinquency and Foreclosure Policy and Procedure
Updated February 2013
Escrow Payments From ****************,
$
through ******************.
Principal Payments From
through **************.
***************, $
Attorneys Fees
$
************** Monthly Payment
$
Total
$
TOTAL
If you are unable or unwilling to reinstate the mortgage, Pensacola Habitat for
Humanity, Inc., may accept a deed from you transferring the property back to Pensacola Habitat for
Humanity, Inc., instead of foreclosure. This would prevent a foreclosure from being reported to the
credit bureau. You would need to voluntarily vacate the premises as a condition of this agreement.
Acceptance of a deed instead of foreclosure is conditioned upon examination of title information for
your property.
Failure to reinstate the mortgage as set forth above, or to deed the property back to Pensacola
Habitat for Humanity, Inc., by *************, will leave Pensacola Habitat for Humanity, Inc., no choice
but to initiate foreclosure of the mortgage.
Your prompt attention to this matter is appreciated.
Very truly yours,
[Authorized Signature, Upper MGMT]
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Delinquency and Foreclosure Policy and Procedure
Updated February 2013
ATTACHMENT 5
REPAYMENT AGREEMENT
This Repayment Agreement (the “Agreement”) is made and entered into this ___ day of
______________, 20__, by and between __________ (“Homeowner”), and Pensacola Habitat for
Humanity, Inc., a Florida not for profit corporation (“Habitat”).
WITNESSETH:
WHEREAS, Homeowner owns that certain real property located at _______________________
Florida (the “Property”), more particularly described as follows:
________________________________________________________________________
___________________________________________________________;
WHEREAS, Habitat furnished purchase-money financing for Homeowner’s purchase of the
Property;
WHEREAS, the amounts owed Habitat are set forth in promissory note(s) dated ____________
(the “Notes”);
WHEREAS, Property is encumbered by the following mortgage(s) to Habitat:
(a)
mortgage in the original principal amount of $________, dated ____________
and recorded in Official Records Book _____, at Page ____ of the public records of __________ County,
Florida (the “First Mortgage”);
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Delinquency and Foreclosure Policy and Procedure
Updated February 2013
(b)
mortgage in the original principal amount of $________, dated ____________
and recorded in Official Records Book _____, at Page ____ of the public records of __________ County,
Florida (the “Second Mortgage”);
(the First Mortgage and the Second Mortgage may be referred to as the “Mortgages”);
WHEREAS, Homeowner is in default under the Mortgages for failure to make timely payments
due under the Notes;
WHEREAS, Homeowner has requested Habitat to allow Homeowner to pay the delinquency
balance in installments and Habitat is willing to enter into this Agreement provided Homeowner makes
all delinquent payments timely and is otherwise in compliance with the terms of the Notes and
Mortgages; and
WHEREAS, the parties desire to enter into this Agreement to reduce to writing their
understandings and agreements.
NOW, THEREFORE, in consideration of the premises, and the mutual covenants set forth herein,
and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties agree as follows:
1.
Recitals and Exhibits. The foregoing recitations are true and correct and are
hereby incorporated herein by reference. All Exhibits annexed to this Agreement are hereby
incorporated herein and by reference made a part hereof.
2.
Acknowledgment of Delinquency. Homeowner and Habitat acknowledge and
agree that the amounts delinquent under the Notes and the Mortgages as of the date of this
Agreement total the sum of $____________ (the “Delinquent Amount”).
3.
Repayment of Delinquent Amount. Homeowner will pay the Delinquent Amount in ___
monthly installments each in the amount of $__________ commencing _____________ and continuing
on the ___ day of each month thereafter until paid in full.
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Delinquency and Foreclosure Policy and Procedure
Updated February 2013
4.
No Grace Period.
Homeowner acknowledges that payments required under
paragraph three (3), above, are required to be paid on time and that Habitat shall have the right to reject
any payments not made on or before the date due and to proceed to enforce the Notes and Mortgages
without further notice.
5.
Homeowner’s Release of Habitat. Homeowner does hereby release and forever discharge
Habitat, its attorneys, directors, officers, agents, employees, members, managers, representatives,
successors, and/or assigns, of and from any and all manners of action and actions, causes and causes of
action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants,
contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, appeals of
judgments, executions, claims, demands, and liabilities of any nature whatsoever, in law or in equity, that
Homeowner, Homeowner’s successors and/or assigns may have had, now have, or may hereafter have
against Habitat, its attorneys, directors, officers, agents, employees, members, managers, representatives,
successors, and/or assigns, arising out of or in any manner pertaining to dealings of the parties prior to the
date hereof.
6.
Confidentiality and Non-Disclosure.
Each party hereto agrees that they will keep
confidential and shall not at any time, directly or indirectly, divulge, reveal or communicate any aspect of
this dispute including, without limitation, the underlying facts of this dispute, the settlement of this
dispute and the terms and conditions of this Agreement.
7.
Governing Law/Venue. This Agreement shall be governed by and enforced and
construed under the laws of the State of Florida, without regard to its conflicts of laws provisions. Venue
of any proceeding involving this Agreement will be in ____________ County, Florida.
8.
Captions. All captions or title of paragraphs used in this Agreement are for convenience
only and are not intended to construe, limit, define or describe the scope or intent of any paragraph of this
Agreement nor in any way affect this Agreement.
9.
Counterparts. This Agreement and any amendments hereto may be executed in
counterparts, each of which shall be deemed an original and such counterparts shall constitute but one and
the same instrument.
10.
Binding Effects. All covenants, agreements, warranties and provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors,
administrators, personal representatives, successors, and permitted assigns.
11.
Construction of Terms. Where appropriate, any word denoting the singular shall be
deemed to denote the plural, and vice versa. Where appropriate, any word denoting or referring to one
gender shall be deemed to include the other gender, or the neuter.
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Delinquency and Foreclosure Policy and Procedure
Updated February 2013
12.
Entire Agreement. This contract contains the sole and entire agreement of the parties
hereto with respect to the transaction contemplated hereunder and no representation, inducement, promise
or agreement, parol or written, between them and not incorporated or referred to herein shall be of any
force or effect. Any amendment to this Agreement shall be in writing and executed by both parties
hereto.
13.
Attorneys’ Fees. Each party is to pay its own attorneys’ fees and costs related to the
disputes, which are resolved by this settlement. In the event of any litigation arising out of this
Agreement, the prevailing party shall be entitled to recover all costs incurred including, but not limited to,
reasonable attorneys’ fees at all trial and appellate levels and post-judgment proceedings, including all
fees incurred in establishing entitlement to and amount of the fees.
14.
Acknowledgement.
The parties further represent that they have read this Agreement
in its entirety and understand all the terms contained herein and further acknowledge that this Agreement
contains and sets forth the entire Agreement between the parties hereto and there is no part of the
Agreement between them which is not fully, completely, accurately and truly set forth herein.
(end of text; signature of Homeowner on following page)
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Delinquency and Foreclosure Policy and Procedure
Updated February 2013
Homeowner:
_________________________________
Print name:________________________
STATE OF FLORIDA
COUNTY OF _______________________
The foregoing instrument was acknowledged before me this _____ day of _______________,
20___, by _____________________.
__________________________________
NOTARY PUBLIC
______Personally Known
OR
______Produced Identification
Type of Identification Produced________________________
12
Delinquency and Foreclosure Policy and Procedure
Updated February 2013
PENSACOLA HABITAT FOR HUMANITY,
INC., a Florida not for profit corporation
__________________________________
By: ______________________________
Its: ______________________________
STATE OF FLORIDA
COUNTY OF ESCAMBIA
The foregoing instrument was acknowledged before me this _____ day of _______________,
20_____, by __________________ as _________________________ of Pensacola Habitat for Humanity,
Inc., a Florida not for profit corporation.
__________________________________
NOTARY PUBLIC
______Personally Known
OR
______Produced Identification
Type of Identification Produced_______________________
13