Homeowners Who Receive Foreclosure Counseling Are Sixty Percent More Likely to Avoid Foreclosure

Homeowners Who Receive Foreclosure Counseling Are Sixty Percent More Likely to Avoid Foreclosure than Homeowners Who Don’t Seek Counseling NFMC Program Counselors Help Homeowners Reduce Their Mortgage Payments an Average of More Than $5,000 per Year

Today Neighborhood Housing Services of Orange County (NHS OC) announced that homeowners who receive foreclosure counseling are 60 percent more likely to avoid losing their homes to foreclosure than homeowners who do not receive foreclosure counseling, according to findings in a recent report of the National Foreclosure Mitigation Counseling (NFMC) Program. NHS OC is a grantee of the NFMC program, and an affiliate of NeighborWorks America, which was selected by Congress to administer a homeowner counseling program to address the national foreclosure crisis.

As a result of NFMC Program funding, Orange County families along with families across the nation who sought and received foreclosure counseling were provided much needed information, assistance and guidance to address their risk of foreclosure, which helped them find a solution to foreclosure.

The report, which analyzed NFMC Program activity during the first year of the program (January 1-December 31, 2008) also found that NFMC Program clients were more likely to receive a loan modification than homeowners who did not receive counseling, and NFMC Program clients who received loan modifications 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 results of this study only verify what we at NHS OC already knew from experience and that is that homeowners that receive education and counseling fare much better than those that don’t,” said Glenn Hayes, Executive Director, NHS OC. “Thanks to the hard work and expertise of our Home Preservation Counseling staff, Orange County 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.”

While the report analyzes the program data through December 31, 2008, to date more than 750,000 families have received foreclosure counseling as a result of NFMC Program funding.

Because of funding from the NFMC program, NHS OC is positively affecting the lives of real people in Orange County, like Ms. Simons. “I turned to a friend to help me purchase a home thinking that she had a legal obligation to help me get an affordable loan. I found out that I was wrong,” said Ms. Simons. “I was scared when I turned to NHS OC for help. Handing over “my whole life” on paper was unnerving but Ana, (Gonzalez, Home Preservation Counselor) handled my case with so much expertise I felt confident that a solution would be found.”

“It took a lot of work and a long time but Ana was able to secure a loan modification. I am so grateful to Ana and to NHS OC for the help that they gave me and my family,” said Ms. Simons, “now I can make my payments, maintain my budget and keep my home.” “I am happy I was able to assist Ms. Simons overcome her hardship. Although the lender was reluctant to provide the assistance she needed; it was Ms. Simons determination and faith in my stick-to-itiveness, that we were able to reach such a goal. Ms. Simons is a proud and determined mom, one that I have much respect, it was truly an honor to meet and assist such a strong and loving person,” said Ana Gonzalez, Home Preservation Counselor, NHS OC.

The NFMC Program was created by Congress to address the nationwide foreclosure crisis by dramatically increasing the availability of housing counseling for families at risk of foreclosure. The $180 million program was authorized through the FY 2008 Consolidated Appropriations Bill, which named NeighborWorks as its administrator. An additional $180 million was appropriated to this effort on July 30, 2008 through the Housing and Economic Recovery Act of 2008, and the Omnibus Appropriations Act of 2009 appropriated another $50 million to the program on March 11, 2009.

For more information about the National Foreclosure Mitigation Counseling Program, visit www.nw.org/nfmc. Homeowners in the Orange County area who would like to receive foreclosure counseling at NHS OC can contact Roberto Gonzalez at robertog@nhsoc.org or call 714-490-1250, or visit our web site – www.nhsoc.org – for additional information. Orange County homeowners can also visit www.findaforeclosurecounselor.org to find additional NFMC Program-funded counseling agencies in our area.

About Neighborhood Housing Services of Orange County

NHS OC’s Home Preservation program promotes foreclosure prevention through education, face-to-face counseling, and community outreach. This three pronged approach ensures that NHS OC reaches as many distressed borrowers as possible while providing individual, customized counseling. NHS OC is a HUD-approved housing counseling agency with counselors that are certified foreclosure prevention experts.