Housing Counseling Assistance For Foreclosure Prevention–What Benefits Do Counselors Offer Homeowners Seeking Help?

Recently housing counselors have been in the news for various reasons as there are counselors being made available to help homeowners through the new federal unemployment home loan program, but for homeowners who are seeking out foreclosure assistance options like modifications, there are also networks like the HOPE Hotline which has been in place for months as a way of homeowners to make contact with housing counselors to guide them through the modification process. Homeowners who are either buying a new home or may be in a position where foreclosure prevention assistance is needed have been able to benefit from housing counseling aid in some cases, but there are still questions as to how effective and efficient this type of assistance may be.

Some of the main problems that housing counselors have seen usually come in the form of for-profit organizations that may charge homeowners for information regarding the home loan modification process, as an example, but there are also scams that have been perpetrated and have left homeowners who were previously struggling in a much worse position. However, there are arguments that are currently being made as to how effective housing counseling assistance can be, for new homeowners or those looking to avoid foreclosure, and there are some mixed opinions on whether housing counseling assistance does help homeowners with these various aspects of homeownership.

As an example, homeowners who have turned to federal home loan modification assistance from housing counselors have numbered at over 1 million, according to Treasury Department reports, and there is some data that indicates this may help homeowners more efficiently work their way through the home modification process and acquire foreclosure prevention assistance that will be necessary to keep them in their home. Miscommunication can be a major problem for homeowners and servicers and, as a result, could delay the modification process or put homeowners in a much worse financial position then when they begin the application process to acquire a home loan modification plan.

The problem that homeowners face when seeking out housing counseling assistance is that there have been funding cuts in the past which may limit the amount of free counseling assistance available for certain homeowners, like new homebuyers or homeowners in need of foreclosure prevention, but there are also problems that arise with either lackluster counseling assistance or scams that are purposefully put in place to make money off of homeowners, so research must be done before a counselor is chosen.

Homeowners do have free resources, once again, from nationally accredited housing counselors, but in cases where a homeowner may see an advertisement for counseling aid that may help them either purchase a home or acquire modification, a homeowner must make sure that this particular counselor is reputable, has national accreditation, and even a simple online search can help to see whether past customers have been satisfied with the aid they received. Obviously, it will be better for homeowners find a counselor that will offer them specific assistance rather than generalized information or group meetings, so this is another aspect of a housing counselor that homeowners need to consider when they are looking for guidance in various areas of homeownership.

As to how helpful housing counseling happens to be is debatable, but homeowners who are totally at a loss for steps to take, particularly when it come to foreclosure prevention, a session with the right counselor can be helpful, even if there is no guarantee that they will be successful in the home loan endeavor they are pursuing.