Tuesday, Oct 11 2011 6:12PM
Housing counseling programs were awarded $88 million by Congress for 2011, but grants were not approved for next year.
Government budget cuts are in effect which decreases the amount of funding available for American homeowners looking to receive
housing counseling, according to The Atlanta Journal-Constitution.
Housing counseling programs were awarded $88 million by Congress for 2011, but grants were not approved for next year. The government made cuts due to concerns regarding the speed at which the U.S. Department of Housing and Urban Development disbursed the funds.
Michelle Jones, senior vice president for counseling for CredAbility, told the source the number of homeowners seeking assistance remained high this year after peaking in 2010. She also noted the decrease in funding has led to layoffs, which reduced the number of counselors available and increased the workload for those remaining.
To maintain services without government grants, some counselors are now charging for previously free services, the paper reports. Counselors assist consumers who are attempting to avoid foreclosure and secure or refinance a mortgage, among other services.
According to the U.S. Government Accountability Office, research indicates homeowners who receive housing counseling are almost twice as likely to avoid foreclosure as those who do not. Housing counseling stakeholders and supporters are lobbying for funding to be restored, or seeking alternate sources of support.
For further reference, check out this source:
The Atlanta Journal-Constitution