NeighborWorks America believes that one way to reduce the default rate is for homeowners to receive the lowest sustainable mortgage payment possible when they rework their mortgages. Foreclosure counseling also greatly increases the chances that homeowners will be successful in their efforts to keep their homes.
In a report released in November, NeighborWorks America found that homeowners who received loan modifications through the National Foreclosure Mitigation Counseling (NFMC) Program lowered their mortgage payments significantly more than homeowners who received loan modifications without NFMC Program counseling.
NFMC Program clients, with the help of their counselors, secured loan modifications that lowered their monthly mortgage payments $454 more than the clients who received modifications without foreclosure counseling, which results in an average annual savings of $5,448. The same report found that NFMC clients are 60 percent more likely to avoid foreclosure than homeowners who don’t seek counseling.
Read “Quarter of HAMP Mods in Default Again” at DSnews.com
Learn more about the NFMC report in the NeighborWorks newsroom.