More than 1 million homeowners facing foreclosure have received counseling via the congressionally funded National Foreclosure Mitigation Counseling (NFMC) program, reports program administrator NeighborWorks America.
Since December 2007, Congress has appropriated $475 million to NFCM. According to an independent evaluation of the program by the Urban Institute, homeowners who received counseling through NFMC were 60% more likely to avoid losing their home to foreclosure than homeowners who did not seek counseling. NFMC program clients were more likely to receive a loan modification and, on average, saved $454 more on their monthly mortgage payments per month, than homeowners who received modifications but did not work with a counselor.
"The evaluation findings speak volumes about the value of counseling and the vital role counselors play in helping homeowners find a solution to foreclosure," says NeighborWorks CEO Ken Wade.
SOURCE: NeighborWorks America