CredAbility, an Atlanta-based nonprofit organization, has received more than $4 million from two separate federal grants to provide free foreclosure prevention counseling to homeowners seeking to modify their home mortgage loans or take other action to avoid foreclosure.
The organization received $3.55 million from NeighborWorks and $473,400 from the U.S. Treasury Department's Making Home Affordable (MHA) Outreach and Intake Project. The latter grant covers the cost of providing counseling to homeowners seeking to avoid foreclosure that have lost a job or experienced a significant loss of household income.
The group's counselors will help homeowners determine if they qualify for a loan modification that will lower monthly payments and interest rates under MHA. Counselors will also help people who own homes that are valued at less money than their mortgage, and have been unable to refinance their mortgage loans, by exploring the possibility of a principal reduction.