Consumerist: counseling

Where Do I Turn For Help With My Mortgage?

Meg Marco — Tue, 25 Nov 2008 12:12:54 EST

Reader Mike is in a "challenging mortgage situation" and wants to know where he should turn for help.

Mike asks:

What's the typical mortgagee's point of contact to find out how all this bailout stuff affects them? If I have a challenging mortgage situation and want to see if I qualify for relief, what do I do? Call my mortgager? Write my congressman?

It sounds like you need some professional guidance. The FTC recommends contacting a housing counseling agency. Here is how they recommend finding one:

Call the local office of the U.S. Department of Housing and Urban Development (www.hud.gov) or the housing authority in your state, city, or county for help in finding a legitimate housing counseling agency nearby. Or consider contacting the NeighborWorks® Center for Foreclosure Solutions at 888-995-HOPE or www.nw.org. The Center is an initiative of NeighborWorks America.

Here's NeighborWorks America's Foreclosure Resource page, and here's a Guide to Avoiding Foreclosure from HUD.

We hope that helps you, Mike. Good luck.

Mortgage Payments Sending You Reeling? Here’s What to Do [FTC]
Foreclosure Resources [NeighborWorks America]
Guide To Avoiding Foreclosure [HUD]
(Photo: Groovnick )

Don't Wait Too Long To Get Help With Money Problems

Chris Walters — Wed, 07 Nov 2007 19:45:37 EST

Too many people wait until they hit rock bottom before seeking help from credit counseling agencies, says a New York credit counseling service. The consequence is that consumers end up limiting "the options available to them without having to make major, and often very difficult lifestyle changes. If they wait too long, debt repayment plans become unaffordable—leaving them more vulnerable to losing assets or having to file bankruptcy."

So how do you know when it's time to ask for help? If your monthly payments are exceeding your monthly income, it's probably a good time. To find an agency, check out wikiHow's How To entry, and use this list provided by Bankrate to ensure the agency will be able to provide the services you need.

"Don't wait too long to get credit help" [StarGazetteNews.com]

Debt Counselors Feeling The Strain Of Subprime Meltdown

Chris Walters — Thu, 01 Nov 2007 13:57:59 EDT

As foreclosures continue to skyrocket, debt counselors have become a last resort—sometimes the only resort—for thousands of panicked homeowners who don't know how they're going to keep their homes. "I don't think people fully appreciate the pressure that's being put on those counselor organizations today," says a Housing and Urban Development official. In addition to offering financial advice, the counselors try to help negotiate payment plans with lenders, stave off foreclosure notices, and even offer mental health support for people so distraught that they become depressed or suicidal. The average pay: $30-50,000 a year.

Counselors have tried to keep up with the increasing demand for their services—Neighborworks, one prominent organization, trained 1,678 counselors in 2007 compared to 143 in 2004. More counselors are asking for foreclosure prevention training, and the organization is now offering stress management training as well. But the total number of financial housing counseling has remained about the same in the past several years due to limited government funding. And now, with a drastically increasing workload, organizations are worried that they won't be able to offer competitive salaries to retain counselors at a time when they're most needed.

"Counselors stressed out by desperate clients" [CNN Money]
(Photo: Getty)

Facing Foreclosure? Take A Deep Breath And Don't Panic

Carey — Sat, 08 Sep 2007 09:34:18 EDT

The ongoing subprime meltdown will claim its next victims in October, when adjustable rate mortgages worth over $50 billion reset, but homeowners facing foreclosure can keep a roof over their head by following a few common-sense tips. Above all, don't panic, and don't ignore the problem - instead, try the following:

Reason With Your Lender: Ask and ye shall receive. Explain your situation, and ask for a lower or fixed rate, or more time to pay off the mortgage. As the subprime market implodes, lenders are trying harder than ever to retain paying customers.

Call A Counselor: Counselors can help delay foreclosure - sometimes for up to a year - but only if you give them ample time to negotiate with lenders.

Lawyer Up: As a last resort, a lawyer can help you file for Chapter 13 bankruptcy, which forces lenders to negotiate a payment plan. Lawyers can also help borrowers who had little chance of repaying truly outrageous loans sue the lender for violations of the Truth in Lending Act.

Be careful if you choose the legal route, as Chapter 13 can hurt your credit score, and a failed suit against a lender can put you further in debt by making you liable for attorney's fees.

What People Can Do If Foreclosure Looms [WSJ] (Subscription req'd)
(Photo: goat_girl_photos)