Financial Counseling May Save Your Home

(NAPS)—There could be good news for the estimated 5.6 million families on the brink of losing their homes. New research shows that nonprofit groups might make all the difference. That’s why Freddie Mac and 13 of the country’s leading nonprofit groups are trying to reach those who are overwhelmed by collector calls or discouraged about getting a mortgage modification. In addition to a nationwide phone campaign, they’ve opened walk-in help centers offering “holistic” financial counseling around the country. Holistic counseling addresses a wide range of borrower debt and income issues, not just delinquent mortgages. This gives people access to one-on-one support from trusted independent, nonprofit organizations, explains Dwight P. Robinson, senior vice president of Community Relations and Housing Outreach for Freddie Mac. Homeowners who get credit counseling are 60 percent more likely to avoid foreclosure than those who don’t get it, says a NeighborWorks America report. That shows credit counseling can work. Here are four things to look for and four things to avoid when considering a credit counseling agency. Look for:
• Charges—HUD-approved housing counseling services are free, so
if an agency charges a fee, look very carefully at what type of services
require a charge;
• A reputable agency that is accredited by a recognized accreditation
organization such as NeighborWorks America or the National
Foundation for Credit Counseling;
• Organizations that have community presence—branches that are
open to the public;
• A written “Action Plan” after each counseling session.
Look to avoid:
• Anyone who “guarantees” success;
• Anyone who charges up-front fees for a mortgage modification;
• Anyone who wants you to sign away your deed, or paperwork you
don’t understand;
• Any place that wants you to pay it instead of the mortgage company. You can find a credit counseling agency in the phone book, by calling the U.S. Department of Housing and Urban Development (HUD) at (800) 569-4287 or by looking at the list at www.hud.gov. Homeowners can also call the HOPE hotline for help in English and Spanish at (888) 995-HOPE or visit www. FreddieMac.com/avoidforeclosure.