Why Talk to a Housing Counselor?

• Author: Teresa Boehm
• Posted: 2024-06-06

It isn't unusual to hit on hard times. The last few years have seen more than their share of pandemics and financial crises. As a result, you may have trouble keeping yourself and your family properly housed. Now is the time for you to get the help you need to ensure that you can pay your mortgage and keep your home. A housing counselor can help you.
 

Communication is the Key to Staying Indoors

The laws regarding the process of foreclosure tend to vary depending on the state that you live in. In most cases, a mortgage company will start foreclosure proceedings anywhere from three to six months after you have missed a payment. This is a time during which it is vitally important for you to stay in contact with the lender.

Keep in mind that there are always alternatives to getting foreclosed on. Consulting with a housing counselor can be the key to avoiding the loss of your property. You may be able to negotiate a modification of your home loan. There are also other plans, such as general forbearance or a modification of your repayment agreement.
 

A Housing Counselor Can Help Avoid Foreclosure

A housing counselor is the industry expert who is most qualified to help you understand exactly what the foreclosure process entails. They are the one who can make you aware of the precise conditions under which this system operates. They are also the ones who are best able to give you advice on how to avoid getting caught up in this process.

The counselor that you speak to is the one who can help you understand the options that you possess for repayment. They can give you advice on such matters as a possible modification to your mortgage. This is valuable counsel that can give you a much more manageable way to finance the payments for your home.

If it should come to the worst, a housing counselor is able to provide support to help you cope with losing your home. They have the ability to show you a wide range of options that will help you and your family survive. A housing counselor can divulge various means of support that you can lean on until you get back on your feet.

You should also note that a housing counselor is equipped to provide you with a series of tools that you can use to avert any future delinquency. They are always armed with valuable advice that you can use to stay solvent in this regard.
 

Can Counseling Lead to Appreciable Results?

Perhaps the biggest question that you may have will be whether or not meeting with a housing counselor can lead to noticeable results. The answer is a resounding yes. For one thing, this is the person who is able to work directly with your mortgage lender in order to find a viable solution. They will serve as your representative in this matter.

A housing counselor can also help you to devise and adhere to a sensible household budget. This is an arrangement that can help you cut our wasteful spending so that you will have the means to pay your mortgage. A sustainable monthly budget will also help you to meet your other bills so that you can keep your car and other possessions.

This is also the person who is best qualified to help you reduce your total amount of debt. Doing so can give you the means to begin rebuilding your savings. The more money you can save, the easier it will be to dig out of the financial hole you find yourself in. At the same time, you can also begin to rebuild your general credit score.
 

What Are the Permanent Effects of Housing Counseling?

Recent studies conducted by experts in the housing industry have shown proof of the positive effects of housing counseling. These reports indicate that people who receive this type of counseling are far less likely to default on a loan within the first two years.

HUD studies also indicate that those who interact regularly with a housing counselor tend to be in far less debt. Some reports allege that the amount may be as much as $11,300.

It's also worth noting that counseling is especially helpful to first time home buyers. Older buyers who are looking for a reverse mortgage can also benefit from the advice of a professional counselor.