Foreclosure Prevention Counseling Could Save Your Home
Last updated: May 3, 2012 by Susan
Don’t let your pride get the better of you – foreclosure prevention counseling could mean the difference between saving your home and slipping into foreclosure.
But what exactly should you expect in the counseling process?
Here’s the short version: you explain the circumstances why you can’t make your payments, and the foreclosure counselor shows you what options you have available at your disposal while giving you advice on how to better manage your finances.
Foreclosure counselors can also connect you with legal, financial and government sources of assistance if you are eligible to receive any of these resources.
Considering that there are numerous state and federal-sponsored housing finance programs that can help provide cash assistance – like the CHFA for instance – it is definitely worth seeking the knowledge of foreclosure counselors to help get you out a fix.
Now while most counselors are legitimately trying to help out their clients, you do have to remember that there are still some rotten apples mixed in with the bunch.
Here are a couple of signs that you are looking at the wrong kind of counselor:
- Requests fees. The HUD pays foreclosure prevention counselors so you don’t have to, so always look for HUD-sponsored counselors in your area.
- Asks for property-related documents. A counselor has no business handling any kind of document related to your property. Legit counselors don’t need this information to help you with mortgage payments.
- Goes with an “I’ll handle it for you” approach. Legit counselors point you where to go. Be wary of counselors who promise to magically resolve your foreclosure problem – especially when they ask for money or documents to do so.
Just remember that foreclosure prevention counseling isn’t a sure-fire solution to your problems. If the situation is irreversible, then you might eventually be forced to grit your teeth and go through foreclosure after all.