Foreclosure Prevention Counseling Programs For Homeowners–How Information On Available Aid Has Helped

10/31/2011
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Foreclosure prevention counseling programs may bring assistance to homeowners who are currently struggling as we have seen aid available to these men and women in the past that has helped them to better explore options that may make their mortgage payment more affordable, may help them find long-term stability, and explore the variety of opportunities that will be best for their situation as some are still struggling with personal financial distress. Yet, consumers do need to be aware that information that may be available should only be taken by reputable sources, as there are some scams that have also been perpetrated when homeowners start looking for assistance to help them prevent the loss of their home through foreclosure as a result of many setbacks that have been seen over the past months and even years.

While reputable resources like the Homeowner’s HOPE Hotline and the Department of Housing and Urban Development have been some of the common resources that consumers have consulted, there are also some men and women who have benefited from simply contacting their state housing agencies as the variety of programs that are being made available at a federal and state level have been beneficial when it comes to helping some avoid the loss of their home. Obviously, homeowners are well aware of federal modification plans, but there are extension programs within HAMP that may offer some homeowners the opportunity to refinance when their home is underwater or take advantage of a forbearance option that may be available for unemployed homeowners.

We recently saw changes in the underwater mortgage refinance program that is an extension of HAMP, but there are homeowners who may benefit more from state-specific initiatives as there are some areas where subsidies or grant-like opportunities are available to meet a homeowners mortgage payments, while others have been able to assist homeowners with negative equity or unemployment as well.  In some cases, there have been homeowners who have benefited solely from these state-specific plans as many major mortgage servicers are offering assistance in certain states and the programs within these state initiatives, but even if these plans are unavailable homeowners do still benefit from foreclosure prevention counseling when it comes to exploring all the opportunities that may be helpful for their situation.

However, what officials want homeowners to understand is that the foreclosure prevention counseling opportunities are usually from programs that may be associated with federal agencies or, once again, a state housing agency, but when a counseling program wants money up front or may ask that a homeowner start working with them rather than their servicer, this has often been a red flag for some as again there are some scams that have been used to put homeowners in a more difficult financial position as a result of these desperate men and women seeking aid from any source they can. Again though, reputable sources are available and even can offer free housing counseling assistance, but depending on the situation and a homeowner’s state, the opportunities available to help them avoid the loss of their home will differ and may not always be guaranteed to help when it comes to keeping a homeowner in their property.

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