Mortgage counselors help with paying and refinancing your mortgage.
You don’t have to go through the foreclosure prevention process alone. There are people who will help. A mortgage counselor with a housing counseling agency will answer your questions, can assess your situation, go over your options, and also help you prepare for those important discussions with your loan servicer. Best of all, housing counseling services are usually free or low cost. Get details on how mortgage and housing counselors help homeowners.
Mortgage counselors serve many roles for homeowners. They can help borrowers find a way to get current on any outstanding home loan and associated bills, assist with owners finances, help modify a mortgage, and also, if needed, explain how the foreclosure process works. They may offer other services as well. Some counselors even direct clients to various home buying programs.
Services offered by mortgage counselors
Mortgage counselors will also work with creditors, banks and lenders to try to come up with a solution to saving a home from foreclosure. They explore options including refinancing or loan modifications. This service is for homeowners and it will help them with paying their mortgage, home loan and any other relevant debts they may have.
Counselors have numerous roles to meet. They include good listening, negotiation, being advocates for the homeowner, and also the ability to analyze sometimes complex financial situations. Many times they need to deal with scared, angry, and frustrated homeowners who may be ashamed and confused about their current situations. These homeowners may often times be embarrassed to be asking for help with paying bills or their mortgage. That being said, the many borrowers who are assisted by this process are extremely thankful to their counselor for their assistance in pointing them in the right direction.
Many of the issues mortgage counselors deal with have been caused by shady lending practices or financially inexperienced homeowners that got in way over their heads. There are too many people that were deceived or maybe didn’t understand the terms of their home loan. Many others homeowners were sweet-talked into signing by these unscrupulous banks or lenders who only cared about their commission and closing the deal.
The variety and type of troubled homeowners notwithstanding, mortgage counselors have very difficult jobs that demand diplomacy, tact, and professionalism under a wide range of circumstances. Most of these counselors got into the counseling business out of a real desire to help people deal with this nationwide problem. Make sure you conduct research to ensure you use a mortgage counselor who is qualified. As there are some shady practices out there. But there are many others who will offer help with paying your mortgage and bills.
In addition to mortgage counselors helping people keep their homes and dealing with mortgage troubles, there are various ways to get help with other debt, such as credit cards and more. As all of the money freed up on those costs can be redistributed to making payments on the home. Learn about how to get help with debt.
Mortgage counselors give advice on government programs
Counselors are also up to date on the numerous federal as well as state government mortgage and foreclosure programs. As there are a number of resources that are available to homeowners across the country. There are options that can help people avoid a foreclosure, get a loan modification, and help them refinance and alter a loan. They also know how to contact mortgage servicers.
- Many states also offer mediation programs, and a counselor can help facilitate that process. Mediation involves finding a solution that works for both the lender and homeowner, and it uses a neutral third party to negotiate. Read more om foreclosure mediation.
- While some of the government programs have been slow to ramp up, the fact is that the total number is increasing. So there are many resources used that hundreds of thousands of people are getting assistance from them. Some of the other options include FHA foreclosure programs, and various options and state government mortgage programs.
Be Alert to Scams and Shady so Called Counselors
Scam artists always follow the headlines, whether it is a hurricane or the current mortgage issues or foreclosure crisis, and they claim to provide you needed help, but they don’t. They know there are countless homeowners falling behind on their mortgage loan payments or that are at risk for foreclosure. The pitches from these people may sound like a way for you to get out from under your bills, but their intentions are usually not honorable. They want to take your money. Among the predatory scams that have already been reported are:
- The foreclosure prevention specialist: This “specialist” is actually a phony counselor who will charge you outrageous fees in exchange for making a few quick, simple phone calls or completing some basic paperwork that anyone could easily do for themselves. None of their actions will result in saving the house. They give homeowners a false sense of hope, it delays them from seeking qualified help, and it even exposes a homeowners personal financial information to a fraudster.
- The lease/buy back: Homeowners are tricked or deceived into signing over the deed to their home to a scam artist who will lie to them, and tell them they will be able to stay in the house as a renter and eventually buy it back. Usually, the terms of this fraudulent scheme are so demanding that the lease/buy back becomes impossible, the homeowner gets evicted, and the so called rescuer (scam artist) walks off with most or all of the equity.
- The bait-and-switch: Homeowners think they are signing documents with a counselor to both bring their mortgage current and pay off their debts. Instead, they are actually signing over the deed to their house. Homeowners usually do not know they have been scammed until they get an eviction or foreclosure notice.
Housing, credit, and foreclosure counselors are one of the best options to call for housing assistance. Most are non-profits, and provide services for free. Get a listing of low cost credit counseling agencies. If you qualify based on your income then some of the counseling can even be provided for free.
Before entering into any arrangement with a credit counseling agency, always read the find print. Feel free to contact the better business bureau (BBB) as well. Oftentimes using the services of a HUD certified housing counseling agency may limit your risks.
Locate a non-profit housing counselor
Counselors are located in many counties and cities throughout the nation, including at community action agencies. There are also more than likely credit and housing counseling agencies, many of which are HUD certified, in your area as well. Often times the services offered are one and the same.
Call the local office of the U.S. Department of Housing and Urban Development. Or contact the housing authority in your city, state, or county for help in finding a legitimate housing counseling agency nearby. Or you can also contact the NeighborWorks Center for Foreclosure Solutions at (202) 760-4000 or https://www.neighborworks.org/. Click here to find a listing of community action agencies, counselors, and non-profits in your county and state.
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