Homeowners who are facing hardships related to their home loan payments and fear that they may run the risk of facing foreclosure on their mortgage do have options from not only home loan modification programs, but there are opportunities that homeowners may be able to take advantage of from housing counseling assistance as well. Obviously, when it comes to avoiding the loss of a homeowner’s property, there are some who are in a better situation than others, in terms of the severity of their mortgage payment issues, but for homeowners in a variety of situations, housing counseling may be helpful when it comes to aiding homeowners and finding more affordability.
While homeowners need to understand that a housing counselor and assistance that may be offered from these resources does not necessarily guarantee that a homeowner will avoid the loss of their home, they can be helpful when it comes to either finding ways to meet payments on a home loan or aid when homeowners are going through the home loan modification process. There have been resources like the Hope Hotline from the Homeownership Preservation Foundation and the Making Home Affordable website.
Understandably, it will depend on a homeowner’s particular needs as to what forms of housing counseling or information may be helpful for their position or even available, but homeowners may also find that they can more easily make their way through the modification process, as some of these counselors could be in a better position to help homeowners organize paperwork, hardship documentation, and simply deal with their servicer.
However, homeowners do also need to make sure that they seek out a reputable housing counseling organization, that may be approved by either HAMP or HUD as there are some fraudulent organizations that are looking to take advantage of homeowners in a bad financial position. Some organizations have, in the past, asked homeowners to sign over the deed to the property or make payments directly to them, and this can be detrimental to a homeowner in a financial situation where meeting their mortgage payment is hard enough already. Typically, housing counselors will act as a guide for homeowners when it comes to either budgeting, the application process for assistance like modifications, or guiding homeowners through alternative options that may be available outside of a traditional modification program.
Again, homeowners need to understand that these are not guarantees and housing counseling assistance, which may be available for many homeowners in a bad financial position, does not automatically translate to an affordable mortgage payment or foreclosure prevention. However, homeowners who are in need of aid and contact a reputable counseling agency early before their financial position becomes too dire may either find more affordability on their home loans through options available for their specific situation or there are some who can help homeowners through the modification process that may increase the likelihood a homeowner will find aid.