Wednesday, Dec 21 2011 2:36PM
The NFMC Program has proven to help many homeowners stay current on their mortgages.
A report released by NeighborWorks America shows homeowners who received
housing counseling assistance through the National Foreclosure Mitigation Counseling (NFMC) Program greatly reduced their risk of defaulting and improved their chances of receiving loan modifications.
Homeowners who obtained a loan modification through the program were 67 percent more likely to stay current on their mortgages, the report found. Additionally, homeowners with modifications were able to reduce their monthly payments by an average of $176.
"In short, the personalized work nonprofit housing counselors do to help homeowners improve their overall financial situation had the greatest effect on a homeowner not falling behind again on their mortgages in the future," said Eileen Fitzgerald, NeighborWorks America CEO.
She added that the NFMC Program significantly helps mortgage servicers, as it reduces the risk of homeowners defaulting on their home loans. This helps foster good relationships with nonprofit counselors, as well, she noted.
Funding for housing counseling programs through the U.S. Department of Housing and Urban Development has been slashed. However, reports show millions of homeowners nationwide are late on home loans.
For further information, check out this source:
NeighborWorks America