Consumer Counseling For Home Loan Foreclosure Prevention–How Can Counseling Help Struggling Homeowners?

Earlier this month it was reported that funding that helps provide housing counseling to distressed homeowners was made available to various state housing finance agencies in the hopes of providing more information to homeowners who are in need of some form of foreclosure prevention assistance, as there are problems when it comes to homeowners dealing with financial institutions or even being aware of certain programs that may help them keep their home. One of the reasons that these initiatives are constantly reported on is that homeowners who may know little or nothing about programs, such as home loan modifications, are always coming into the foreclosure prevention arena but, since these programs have been ongoing for so long, these uninformed individuals may simply not have access to the data they need since there are those who feel that foreclosure prevention options are common knowledge.

Yet, when it comes to general housing counseling assistance, homeowners must understand that these resources are available from many reputable institutions, but there are also scams being perpetrated as well, so being careful and cautious about what forms of counseling assistance are sought out is the first step that a homeowner must take if they are looking for help with their mortgage difficulties.

Homeowners should know though, there are not simply new funds being made available for the first time to help counseling agencies aid homeowners, but there are a variety of services from nonprofit credit counseling agencies to housing counselors associated with the Making Home Affordable Program or HUD that have also been available to assist homeowners with exploring options to save their home. As an example, the HOPE Hotline has, as of the most recent reports which tracked home loan modification data through the month of April, given free housing counseling assistance to over 1 million homeowners.

While not all homeowners may find the assistance they need through these housing counseling initiatives, foreclosure prevention that is available through these counseling sessions can be beneficial in that homeowners may find a more in-depth understanding of the home loan modification process or be made aware of programs not only from federal initiatives but there are also options that may be open from their state housing agency or directly from their servicer. Some homeowners have found that dealing with certain banks is quite frustrating as there seems to be a lack of organization or miscommunications between homeowners and these representatives, so housing counseling can also help guide homeowners through the modification foreclosure prevention process in a more streamlined way.

Homeowners need to understand that housing counseling will not guarantee foreclosure prevention, but is simply a supplement to plans that are currently available that could give a homeowner a better chance at finding the foreclosure prevention assistance they need and could eliminate any mistakes by a homeowner which could either delay their home loan assistance or may potentially disqualify them from finding the help that they seek.