Financial Counseling

How to Obtain Financial Counseling Before Mortgage Foreclosure
Homeowners who wish to avoid foreclosure can speak with financial counselors for assistance. Avoiding foreclosure may simply entail an overhauling of one's monthly budgeting system, or it may involve more intensified steps such as working with a lender to modify an existing loan. The U.S. Department of Housing and Urban Development sponsors programs that are aimed at helping homeowners manage their financial affairs in order to avoid the possibility of foreclosure. Homeowners may take advantage of these services at minimal costs or for free.

Find Your Local HUD Office -  To take advantage of the reduced-cost financial counseling offered by the government, individuals will have to find a local HUD office near them. At the local HUD office, an individual can gain support and benefit from the wisdom that financial counselors have to offer about governmental programs aimed at reducing one's monthly loan payment or reducing the principle balance of a loan. Financial counselors at the HUD offices may also be able to help homeowners learn how to better manage credit card debt so that they can begin to make their monthly mortgage payments on time. If you are unable to afford the fee of these services, then you can submit an application to have the fee waived.

Work with a Private Company -  Another option that you have is to work with a private company to obtain financial counseling. Some homeowners pursue this option after they have attempted to qualify for reduced-fee services from the government for financial counseling. Before working with a private company, a homeowner should make sure that the company has obtained actual results in negotiating mortgage modifications or helping homeowners in other ways. A homeowner may also want to check the status of the company with the Better Business Bureau to make sure that no formal complaints have been lodged against the company. A housing specialist can help you find resolution to your foreclosure issues by obtaining a loan modification, forbearance terms or a new repayment plan for your loan. A housing specialist can also help homeowners understand the effects of a short sale or deed-in-lieu of foreclosure options.