Working with a housing counselor is free. Be aware that they will not work with your lender on your behalf. Rather the counselor helps you prepare for negotiating with your lender. They act like a sort of mortgage help coach.
It is also important to be aware that working with a housing counselor in no way guarantees that you will be able to stop foreclosure and save your home. As stated earlier they are just there to coach you through the situation and help you navigate through the details of the lender negotiation process.
Often the lender will postpone or delay the foreclosure while you seek help with a counselor and they analyze your financial situation. This foreclosure freeze also allows time for you to negotiate with the lender.
The Foreclosure Help a Nonprofit Housing Counselor Provides
- They will help you analyze your current Income
- Help you analyze your current expenses and highlight opportunities to save.
- Help you create an optimal monthly budget
- Help you create a hardship letter that identifies and explains why you were unable to keep up with the monthly mortgage payments.
- Help you determine the best mortgage workout solutions to seek given your unique situations. Whether this is a loan modification that lowers your monthly mortgage payment, or a request for a deed in lieu of foreclosure accompanied with financial assistance through a cash for keys program, or whatever plan is right for you.
- They will be able to help answer any questions you may have about this process and help you understand the laws and processes of foreclosure in your local area.
If you think this type of service would benefit you then your next step should be to contact a nonprofit housing counselor.