A Recent NeighborWorks America Report Confirms the Importance of Getting Outside Help to Stop Your Foreclosure
Found some interesting information that I had to pass along to you today.
As you know, I stress that if you are facing foreclosure, you should get the help of a lawyer or an expert in loan modifications to help you rather than trying to do it all by yourself.
There is an organization, NeighborWorks America, which congress designated as the administrator of the National Foreclosure Counseling Program at the end of 2007. NeighborWorks America funds the counseling provided by outside agencies for people facing foreclosure.
Several times since it became the administrator of this program, NeighborWorks America has sent reports to congress updating them on the results. Their latest report was at the end of May. This report has the results of the program from March of 2008 through February of 2009.
During that period of time over 373,100 people struggling to make their mortgage payments were helped. The results were:
25% of the total had their loans modified and their monthly payments lowered. They were still in their homes at the end of February.
Only 2% lost their homes.
The remaining people were still in negotiations with their lenders and remained in their homes.
The last item confirms what I have known for quite awhile. Mortgage companies are not acting quickly on loan modifications.
NeighborWorks America went on to report that those people who sought counseling help early had a better chance of saving their homes than those who sought help much later.
Now catch the change here. 60% of those who were more than four months behind on their mortgage payments at the time they sought help were at a high risk of losing their homes. Wow, I never realized what a difference a month could make.
The news media has been reporting right along that loan modifications don’t work. They report that over 50% of the people who have had their loans modified fall behind on their mortgage payments again and are in danger of losing their homes. Yet NeighborWorks America indicates that only 2% of the people who had been in the National Foreclosure Mitigation Counseling Program between March of 2008 and February of 2009 have lost their home.
What does this really mean?
That tells me that most of the people in the reports by the news media have not sought help from anyone. They tried to negotiate with their mortgage company on their own. They accepted what their mortgage company offered. The way their loan was modified did not help them from falling behind on their payments again.
The other thing that these results confirm is that the earlier a person facing foreclosure gets help the more likely they will be to save their homes.
So I urge you again. If you are facing foreclosure, your best chance of saving your home and protecting your family is to get help from a lawyer or an expert in loan modifications as soon as possible.
Much Success,
Mark Elkins
