“Housing Counselors” received more than $400,000,000.00 in federal funds to help against the mortgage crisis. Those counselors help troubled homeowners avoid foreclosure and lower their monthly payments.
Borrowers facing foreclosure are 62% more likely to avoid the disaster if they receive counseling. Borrowers who received some sort of loan modifications were able to reduce their monthly payments approximately $400 lower than those who did not receive counseling.
So far more than three quarters of a millon homeowners have received counseling which is administered by NeighborWorks America. The counselors reviewed borrowers’ income and expenses to determine whether they could afford to remain in their homes. The counselors also work with loan servicers to help borrowers apply for loan modification programs.
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I know 2 friends who trid the counseling thing and it didn’t help them at all. They got their credit pulled and it dinged their credit score and then they found out they couldn’t do much for them
Loan modification worked great for me. I cut my mortgage payment by $147 per month, extending the loan from the remaining 21 years back to 30 years, and cut the interest rate from 7.8 to 6%.