Friday, May 18 2012 2:43PM

The U.S. Department of Housing and Urban Development (HUD) released two reports on the influence HUD-approved housing counseling has had on families who are first-time homeowners and those struggling to prevent foreclosure.

The Pre-Purchase Counseling Outcome Study found that 35 percent of the study participants had purchased a home 18 months after seeking counseling services. Seventy-one percent had a FICO score of 320 or higher and 72 percent completed housing counseling. Of 573 participants, only one has fallen behind on their mortgage payments after going through counseling, indicating that the counseling had a positive effect on homeowners and their actions.

HUD's Foreclosure Counseling Outcome Study found that nearly 75 percent of homeowners who had fallen behind on their mortgage payments had a loss of income and little savings. The study reveals that a large number of homeowners who had counseling were able to catch up on their mortgage payments and save their home. Nearly 70 percent of clients who sought counseling before becoming delinquent still had their home and were current on their payments.

"The evidence is clear, with a little investment on the front end, we can go a long way toward improving the chances families will buy a home they can afford and sustain their homes in the long run," said Raphael Bostic, HUD's Assistant Secretary for Policy Development.

For further information, check out this source: U.S. Department of Housing and Urban Development