Housing may be healing, but that doesn’t mean mortgage servicers can let up their guard in terms of foreclosure prevention efforts. Financial challenges remain for many homeowners around the U.S.
For that reason, NeighborWorks America recently distributed nearly $40 million to 21 state housing finance agencies, 19 U.S. Department of Housing and Urban Development-approved housing counseling intermediaries, and 60 community-based NeighborWorks organizations to provide counseling to families and individuals working with their servicers to avoid foreclosure.
The funds are provided via the National Foreclosure Mitigation Counseling (NFMC) program, which was launched in December 2007 with funds appropriated by Congress.
This tenth round of funding is expected to help more than 122,000 struggling homeowners, NeighborWorks says in a release. The funds will be used to pay for counseling programs that are designed to help borrowers better manage their money and stay current. Research shows that borrowers who work with NFMC counselors are nearly twice as likely to cure a serious delinquency or foreclosure and nearly three times as likely to receive a modification cure.