Criticisms are being Leveled against Foreclosure Prevention Programmes

Criticism is growing leveled against foreclosure prevention programmes for leaning more towards Wall Street rather than Main Street. The suggestion being forwarded is that non-profit bodies certified by HUD would be able to expedite modifications.

HomeFree-USA has been one of such organizations that have been successful in preventing foreclosures. It has been noted by the Urban Institute. The institute measured the success of the work done by National Foreclosure Mitigation Counseling program that is managed by Neighborhood Works America and was set up in the later half of 2007 to contain growing foreclosures.

Ken Wade of NeighborWorks America said, “The findings announced today demonstrate the real impact foreclosure counseling can have for families facing foreclosure. Thanks to the hard work of nonprofit, HUD-approved housing counseling agencies around the country, and the expertise of their certified counselors, families are less likely to lose their homes to foreclosure and receive substantially better mortgage modifications, significantly reducing the likelihood of falling behind again on their mortgage.”

From 2007 over $300 million has been given to 1,700 non-profit agencies dealing with housing problems. One of them that have met with remarkable success is HomeFree-USA. The report by Urban Institute stated that from 2007 over $300 million has been granted to 1,700 housing counseling agencies (non-profit) for helping the needy borrowers. The report noted that those homeowners who consulted a housing counselor and got their loans modified, had their mortgage payments reduced by more $454 in comparison to those who did not.

The report also observed that the homeowners who were lagging behind in mortgage payments by a good number of months were more likely to get out of the foreclosure trap after consulting a housing counselor than those who did not.

Griffin explained, “Homeowners need help but they don’t know there are congressionally-funded nonprofits that can help them, that will advocate for them to get the best deal from their lender, and will hold their hand throughout the modification process.” She added that they have many options to offer. What is required is that the word has to be spread about the help that is available from them.

HomeFree-USA has set up a record of assisting the troubled borrowers. Their help is free and it is successful in eight out of ten cases. It has one of the leading success rates in the industry. The agency cooperates with those who have stopped mortgage payments and even with those who think they cannot continue being current especially on the ARM loans.

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