Foreclosure is as much an emotional process as it is a financial one. If you’re heading down the path to foreclosure, one of the people you want on your side is a foreclosure counselor. Working with a team of foreclosure specialists that includes a foreclosure counselor helps to take the emotion out of the process to help you make sound financial decisions as you move through it. Learn what a foreclosure counselor does – and does not do – to help you during this tough time:
What is a foreclosure counselor?
A foreclosure counselor is a professional that is approved by the U.S. Department of Housing and Urban Development (HUD). The counselor reviews your current financial situation, so he or she can then present programs to potentially stop the foreclosure. These programs are generally through your existing lender or government agencies that are helping homeowners avoid foreclosure. The best part is that the help of a foreclosure specialist is completely free. Contact the HUD foreclosure counseling hotline at 1-800-569-4287 or the HUD foreclosure prevention hotline at 1-888-995-HOPE (4673) for more information.
What does a foreclosure counselor do?
Homeowners who work with a foreclosure counselor to bring their mortgages current are 53 percent higher than those who do not work with a counselor, according to a December 2010 study by National Foreclosure Mitigation Counseling Program (NFMC). It’s a compelling statistic, so how can a foreclosure counselor make this work for you?
The role of a counselor:
- The counselor thoroughly reviews your complete financial situation (not just the foreclosure) and works with you to create a realistic budget;
- Presents all of the options you have available: loan modification, deed in lieu of foreclosure or a short sale;
- Once you choose the option you’d like to pursue, the counselor helps you work through the process with your lender or a loan servicing company.
What doesn’t a foreclosure counselor do?
While a foreclosure counselor is a professional who can help you navigate the difficult waters of the foreclosure process, there are some things they do not do. While their help may extend broadly, it is not comprehensive of your entire financial situation.
Not the role of counselor:
- Tax advisor;
- Legal advisor;
- Guarantor of a resolution.
A foreclosure counselor, however, may be able to refer you to professionals in the tax or legal field. This is especially true since you should have both of these professionals on your foreclosure team as well. Unfortunately, they will not be able to connect you with anyone that can guarantee the outcome of the foreclosure process.
Before you get too far down the road to foreclosure, make sure that you assemble a team of professionals to help you. The first professional you want to enroll is a foreclosure counselor. Since it is a free service provided by HUD, there really is no excuse to not have this team member on your side and working for you.
For more tips and tools to help you manage your home, including a free home loan review to show you if you can save money on your monthly mortgage payment, visit Quizzle.com.
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