Homeowners Weary of Mortgage Help

The sheer number of homeowners who faced foreclosure in recent years caused a myriad of federal and state housing programs, designed to assist individuals in avoiding foreclosure, to pop up everywhere. With these legitimate programs came a range of less than ethical opportunists who offered similar programs, which in some cases turned out to be expensive scams that did little to assist the homeowner in anything except going further into debt. A recent article on AOL Real Estate cited an example of a homeowner who waited nearly six years, struggling beneath an unaffordable rising interest rate, before he sought help through the government subsidized housing counselling organization called the NeighborWorks Home Ownership Center. His reason for waiting so long to seek help? He feared that most of the programs were scams.

A survey by Money Management International, a financial counseling organization approved by the Department of Housing and Urban Development, found that 53% of the homeowners who responded described fears of fraudulent services and scams as the number one reason that they did not seek help from housing counselling programs. It is important for individuals to make educated choices when it comes to housing assistance, but too much caution has led many homeowners to experience foreclosure rather than seek help. A study conducted by HUD found that 70% of homeowners who used housing counselling found a mortgage remedy while another study conducted by the Urban Institute found that individuals who used HUD backed counselling programs were 89% more likely to receive a loan modification.

At the state and federal level, there are a variety of programs that homeowners can consider if they're facing the possibility of foreclosure. It's important that people overcome their fears and seek assistance before their ultimate fear becomes a reality and they lose their home. Visit the Federal Reserve Website to find mortgage and foreclosure resources.

If you're buying or selling a home in the East Lansing or Greater Lansing areas of Michigan, please visit my website at MyRealtorRob. As an East Lansing realtor, I can assist you in the purchase or sale of your home and finding local resources for financing and foreclosure assistance.