Housing Counseling Keeps Homeowners Out Of Foreclosure

The Department of Housing and Urban Development restored $42 million in housing counseling funds within the past three months. In 2011 federal budget cuts eliminated $88 million in funding for HUD approved housing counselors; but pressure from housing advocates and many housing industry trade groups forced the government restore half of the funding.
“We fought hard to persuade Congress to restore funding for housing counseling in HUD’s budget and now we’re working to make these important resources available as quickly as possible,” HUD Secretary Shaun Donovan said.
The housing counselor funding has been reportedly responsible reducing foreclosures. According to Donovan, nine out of ten homeowners who received counseling avoided foreclosure. Many of them went on to receive mortgage modifications. Donovan is hoping that a large portion of the $25 billion foreclosure settlement will go to fund housing counseling on the federal and state level.
For homeowners facing foreclosure, housing counseling is a no-cost choice that can give them an overview of their foreclosure prevention options. Even if a homeowner believes they have done their research, meeting with a housing counselor might be a good idea because foreclosure prevention programs can change quickly. HUD-approved housing counselors will have the latest and most accurate information about the best ways to prevent foreclosure.

What To Expect From A Housing Counselor

Below are a few things homeowners can expect from a housing counselor:

1. Housing counselors should be HUD approved and able to provide you with up-to-date information about your foreclosure prevention options. To find a HUD approved housing counselor in your area visit the HUD website.

2. The housing counselor should take the time to evaluate your financial situation. It’s important that you are honest with the counselor and provide as much relevant information about your finances as possible, this way he can recommend you your best financing options like https://thesoutherninstitute.com.

3. The housing counselor should work with you to create a budget that can help you resolve your foreclosure issue. Even if you’re unemployed, the housing counselor can provide you with information on local resources that help employed homeowners. There are a few programs available for unemployed homeowners facing foreclosure.

What To Bring To Your Meeting

To get the most out of your meeting with your housing counselor bring the following items:

• Monthly mortgage statement

• Information about other mortgages on your home, if applicable

• Two most recent pay stubs for all household members contributing toward the mortgage payment

• Last two years of tax returns

• If self-employed, the most recent quarterly or year-to-date profit and loss statement

• Documentation of income you receive from other sources (alimony, child support, social security, etc.)

• Two most recent bank statements

• A utility bill showing homeowner name and property address

• Unemployment insurance letter, if applicable

• Account balances and minimum monthly payments due on all of your credit cards

• Information about your savings and other assets

• It may also be helpful to have: A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.). By the way, if you’re a single parent due to divorce and the support is not enough, go to conner-roberts.com for a consultation regarding child support.

You should also fill out the Request For Mortgage Assistance form before you meet with your housing counselor. If you have any other questions about how you can effectively work with a housing counselor call 888-995-HOPE (4673).