FORECLOSURE PREVENTION GAINING TRACTION
HOME LOANS, INDUSTRY NEWS, SHASTA COUNTY, SHORT SALES, TIPS FOR SELLERS
November 19th, 2008
HUD released a report recently that found a 55% increase in the number of households receiving 
foreclosure prevention counseling from 2006 to 2007. Predictably, 2008 should be a much bigger year for homeowners seeking help.
Of the 136,000 that completed counseling, 45% were able to stay in their homes while 14% lost their home at auction. The report gave no indication what happened to the other 41%! I would assume they are still working to keep their homes using loan modifications or refinances. I would also assume some will end up losing their homes anyway.
One fact of interest is 55% of low-income families never sought pre-purchase counseling. It is likely that these families made what is a huge purchase relatively speaking, without guidance from a qualified credit counselor leaving them unprepared to tackle this large financial commitment.
The report also showed that minorities were substantially more likely to be credit counseling clients than whites. HUD-approved counselors said their clients were either low-income or very low-income. A breakdown for 2007 credit counseling clients show:
- 308,389 sought pre-purchase counseling
- 264,989 sought help regarding mortgage delinquency
- 380,006 sought rental counseling
- 202,795 received mortgage refinance and reverse mortgage counseling
- 48,953 sought homeless assistance program or shelter counseling
Anyone seeking help should first contact their lender for assistance. Failing that, homeowners in trouble should contact a HUD approved credit counselor. Avoid any foreclosure prevention service that insists on upfront payment for promised services. Con artists are preying on homeowners in distress.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
