Homeowners who are delinquent on their mortgage or who may be facing a foreclosure filing can get help. Several foreclosure centers are being opened across Chicago by Freddie Mac. The centers will put people in touch with counselors who can provide them access to resources and information on options to get back on track with paying their mortgage, including loan modifications and refinancing.
Thousands of Chicago borrowers are 30 days or more behind on their Freddie Mac-owned or managed mortgages. These homeowners may be eligible for assistance with making their mortgages more affordable, including a loan modification, forbearance, a reduction in principal, or more options. Click here for more on principal reduction.
Freddie Mac is being pro-active. They are proactively contacting these homeowners, as well as others whose loan modification efforts have previously been unsuccessful, to talk to these borrowers about their options. These homeowners who may be eligible are will be contacted by either Neighborhood Housing Services of Chicago Inc. or the Latin United Community Housing Association to receive financial counseling and other assistance.
The centers being established, and the pro-active approach being taken by Freddie Mac, will give the banks and lenders a chance to work directly with a homeowner to prevent a foreclosure. The Neighborhood Housing Services of Chicago is a key agency in this process. In the past the bank or lender always slowed down the loan modification process, and the goal now is to break down these barriers and provide relief as quickly as possible.
It is extensive, and goes beyond just mortgage relief. In addition to loan modifications and other housing solutions, so called “holistic” financial and debt counseling is offered. This means that the assistance goes beyond just dealing with mortgage issues. It also includes an assessment of the borrowers debt, medical bills and credit card issues that could affect a borrower's ability to stay current on their mortgage after they were to get a modification. They can help with auto loans, budgeting, and any other type of financial counseling that people need.
The facts show many people do not ask for help when they are struggling. A report issued by the State Foreclosure Prevention Working Group found that only four in 10 seriously delinquent borrowers have asked for help and tried to get assistance dealing with their problem mortgages.
The two Freddie Mac foreclosure centers that are being created will be located at Latin United Community Housing, 1152 N. Christiana Ave., (phone 773-276-5338) on the city's South Side, and at Neighborhood Housing Services' office at 1279 N. Milwaukee Ave. Contact them for assistance.
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