Homeowners who are facing foreclosure on their home are often unsure of what options may be available and, even when homeowners may know of home loan modification programs or other foreclosure prevention efforts that are currently in place, the process to qualify for assistance may be unfamiliar territory for certain individuals. However, homeowners who worry about their home loan payment and their financial position have often been advised, by sources like the Making Home Affordable Program, to seek counseling from sources like HUD.
There are also resources which homeowners may use through other avenues, like the Hope Hotline and website. The Homeownership Preservation Foundation oversees this hotline and assistance program for homeowners in need of counseling, so with various institutions who may be able to offer homeowners guidance concerning their mortgage difficulties, there is hopefully more homeowners who will find the foreclosure prevention aid they need.
However, homeowners do need to be wary of certain mortgage assistance and counseling organizations as there have been fraudulent companies who have attempted to take advantage of homeowners who fear they may lose their home and are seeking advice on what steps to take. While the FTC recently passed new rules regarding mortgage debt relief assistance organizations, which prevented these companies from collecting fees from homeowners before a formal agreement has been reached, homeowners need to be wary if they are dealing with a mortgage relief company outside of a HUD-approved housing counselor or an organization supported by the Making Home Affordable Program.
Homeowners must also understand that housing counselors and these assistance organizations are no guarantee to preventing foreclosure. Rather many of these institutions are simply able to look at a homeowner’s financial situation and either assist them in their personal financial lives so that they can continue meeting their mortgage payment or offer advice about applying and qualifying for home loan modification assistance. Obviously, not all homeowners can avoid loss of their home despite having modification plans available, but those who are simply at a loss of what steps to take once their mortgage payment becomes difficult may be able to benefit from these reputable home loan counseling agencies.