Here is some solid evidence in support of our contention that if underwater homeowners educate themselves, they can change their outcome regarding mortgage or foreclosure issues they may be facing, now or going forward.
In order to educate underwater homeowners and folks with foreclosure issues regarding breaking news related to foreclosure, which also gives information to assist underwater homeowners in Confronting Fraudulent Housing Debt; we often carry short data driven articles from DSNews. Esther Cho wrote the article below. You can read her entire article below, or at her web: “”HUD Studies Suggest Counseling Keeps Owners in Homes “” The link is live, or, read it directly below.
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“Buying a home is the biggest financial investment many people will ever make. It’s also an investment that, in recent years, has become lost for millions. According to data from CoreLogic, since September 2008, there have been 3.5 million completed foreclosures.” [Emphasis Added.]
“Through counseling, HUD found homeowners are more likely to stay in their properties, even when facing foreclosure.“ [Emphasis Added.]
Ken here. Counseling is arguably education. You can educate yourself right here. In fact you are doing that right now. Congratulations.
“HUD released reports on two types of counseling:
- “pre-purchase and
- “foreclosure prevention.
In both studies, HUD reported counseling significantly improved the likelihood homeowners remained in their homes.” [Emphasis Added.]
“The studies enrolled clients in the fall of 2009 and early 2010. For those who enrolled into pre-purchase counseling, HUD revealed that 35 percent of participants became homeowners within 18 months of pre-purchase counseling and only one of those buyers fell behind on mortgage payments.”
“The foreclosure counseling study revealed that of those who received assistance, nearly 70 percent obtained a mortgage remedy to retain their home, and 56 percent cured their defaults and became current again.”
Ken here. That is all well and very good. Yet, you may do better if you take action to Confront Fraudulent Housing Debt and obtain a Forced Debt Reorganization. Wouldn’t it be wise to check it out? Read our book, all of this blog, and come back and tell us you have, and, if you do, we an offer some “tools” to enable you to take action to protect and defend your family and your home.
“The evidence is clear, with a little investment on the front end, we can go a long way toward improving the chances families will buy a home they can afford and sustain their homes in the long run,” said Raphael Bostic, HUD’s assistant secretary for policy development and research.”
“Pre-purchase study
“For the pre-purchase study, 573 people enrolled in counseling services in fall 2009 from 15 HUD-funded counseling agencies across the country.”
“Most purchasers, or 71 percent, had a FICO score of 620 or higher, and 72 percent were reported as having completed counseling by their housing counselor.”
“Participants represented different racial backgrounds (52 percent African American, 32 percent White, 16 percent of another race or multi-racial, and 19 percent Hispanic), and 51 percent were under age 35.”
“Foreclosure study”
“HUD’s foreclosure counseling study included 824 foreclosure clients. About three-quarters of the homeowners fell behind on payments because of a loss of income, and very few had any savings for their missed payments.”
“Homeowners who sought counseling before becoming delinquent or in the early stages of delinquency (1-3 months) were more likely to obtain a remedy, retain their home, and become current on their mortgages.”
“Most study participants attempted to contact their servicer when they first fell behind but were unsuccessful in negotiating with their lenders.”
“At the 18-month follow up period, nearly 70 percent of clients who sought counseling before becoming delinquent were in their home and current on payments, whereas only 30 percent of clients who were six or more months behind at the time they entered counseling were in their home and current at follow-up.”
“The study also found that those who sought counseling via telephone tended to have more income and savings, were less likely to be a minority, lived in more geographically dispersed areas, and achieved stronger housing outcomes.”
“According to the study, this may suggest expanding telephone counseling provided an important alternative for those who can’t receive in-person counseling.”
Ken here. We don’t offer legal advice, but frankly, we say:
How about online informal “counseling” through information leading to self-education!
You can do it. Frankly, most are too lazy. Or, don’t believe in themselves, don’t think they can understand what to do. Our whole deal is to make it easy to understand. Check it out: Our Mission from the top of the blog.
Mission / Intent: To remove the fear of the unknown for underwater homeowners through Education − enabling Trust − leading to Action!
We’re quite proud of that. C’mon along.
