Why is the HUD Housing Counseling Program valuable to lenders with customers facing foreclosure?
Since foreclosures are costly and detrimental to lenders as well as homeowners, it is imperative that lenders are aware of, and support, any efforts that would prevent “at risk” borrowers from entering foreclosure. The mortgage delinquency and loss mitigation services offered by HUD-approved housing counseling agencies are designed to help prevent homeowners from losing their homes. Housing Counseling agencies work closely with lenders while taking a holistic approach to helping homeowners assess their mortgage situation. Generally foreclosure counseling includes: (1) gathering baseline client information during an intake session; (2) assessing a client’s mortgage situation; (3) helping the client work with the lender to assess loss mitigation options; (4) helping the clients communicate with servicers; (5) assisting clients with submitting loss mitigation packages to servicers; and (6) creating written action plans to help clients avoid foreclosure and future financial crises. These s
