If you’re considering modifying your home loan and you have mortgage questions, reach out to a federally-approved housing counselor for assistance. You can double your chances of successfully modifying your loan.
According to Mary Kenney, the Executive Director of the Illinois Housing Development Authority, “A national report recently found foreclosure counseling nearly doubles the chances of mortgage modification and reduces likelihood of re-default by at least 67 percent.”
By scheduling a meeting with free counselors available to homeowners across the nation, you will do more than exponentially increase your chances of a modified loan; you can even lower the total debt owed on your home. Research reveals that eight times out of ten, successfully restructured in-house loan modifications will result in a principal reduction. That means as a homeowner, the principal amount owed by you can be reduced from, for example, $200,000 to $180,000.
For more information about loan mods and reducing the principal amount owed on your property, see the LoanModSource.com article entitled, “Eighty Percent of In-house Modifications Result in Principal Reduction.”
Homeowners Participating in Counseling Have Lower Monthly Payments
According to NeighborWorks America, a leader in community development and affordable housing, homeowners participating in housing counseling decrease their monthly home loan payments by almost $180 more than those who do not participate.
Free Help Available to Assist with Foreclosure Prevention and Home Finance Restructuring
Federally-approved housing counselors are available to assist consumers with mortgage questions. In September of 2011, HUD announced its plan to provide over $10 million to housing counseling agencies throughout nation. The monies were slated in great part to assist with foreclosure prevention efforts and to guide property owners successfully through restructuring their home loans.
However, budget restraints have threatened some foreclosure prevention and counseling funds. Recently mandated cuts took away millions of dollars in HUD-allocated funding that were the life-line of many foreclosure counseling programs. But 445 agencies across the U.S. are urging Congress to free the funds so they can continue to assist struggling homeowners. Through it all, there are still a great number of agencies poised and ready to assist homeowners in need of help now.
As you research loan modifications and other default prevention options, visit the United States Department of Housing and Urban Development’s website at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm. On this HUD website, you can search the list of Approved Housing Counseling Agencies. As a homeowner, you can find an organization in or near your city and get free foreclosure prevention assistance immediately.