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Housing Counseling Groups Trying Hard to Prevent Foreclosures

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Housing counseling groups are trying hard to prevent foreclosures and give some relief to the harassed borrowers. But the counselors themselves are overwhelmed with confusing work.

Carol Robinson of Home Free USA is having problems with a senior person whose income fell after he underwent heart surgery. He was not allowed to modify his mortgage. Not to be deterred, Robinson contacted the lender and found that it was an error and there had been no refusal on the part of the bank.

Each call takes about an hour to be put through and this frustrates Robinson considering the amount of work she tackles. It is like fighting on the front lines. Tissue boxes are kept handy for those homeowners who break down. Nearly a hundred e-mails have to be handled and applications tracked. The work involves talking with the lenders and even reaching out to those borrowers who have buried their heads in the sand and not seeking help.

There are nearly 2,700 HUD certified non-profit housing agencies that provide counseling and assistance to those who are financially strapped and facing foreclosures. This group has been serving customers for a long time giving advice about budgeting finances and managing mortgage loans. Right now the prime focus is on foreclosure prevention.

It boils down to plugging down a tsunami like tide. Over 300,000 houses are facing foreclosure each month as per the findings of RealtyTrac. The good news is that the homeowners can avail of help even if they are not delinquent or are not eligible for federal programme for modification.

HomeFree services of Washington D.C. and also Maryland have expanded from a small office to a bigger one having nine counselors. Their work has gone up by 45% this month. The clients hare helped through the application process and given advice about their budgets and how to balance their income with expenditure. It involves endless follow-up calls to the customers as well as the lenders to keep track of the success of the moves initiated.

Robinson said, “You have to be a certain kind of person to do this and stay calm, even if we may freak out behind the scenes. I have my box of tissues right here for people. They come in, they’re overwhelmed, stressed. We can help transform that person’s life.”

Fortunately their endeavours are making some dents. A private group of servicers, investors and insurers of mortgages together with non-profit counselors say that over 1.7 million borrowers facing foreclosures have been helped.

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