September 5, 2011
In recent months there have been many headlines about con artists targeting FHA and conventional borrowers in trouble on their home loans. A recent press release from the Department of Housing and Urban Development announced a new program to fight scammers. HUD has pledged more than $10 million in housing counseling grants for HUD-approved agencies.
“The funding announced today is specifically earmarked to provide counseling assistance relating to mortgage modification, avoiding potential mortgage scams, and assisting victims of scams,” according to Department of Housing and Urban Development Secretary Shaun Donovan. “It is crucial that we support these agencies in helping struggling families do whatever is possible to avoid foreclosure without being victimized by so called mortgage ‘rescue’ companies.”
The grand money will be awarded to 139 local housing counseling agencies nationwide, with more than $7 million earmarked for 23 housing counseling intermediary agencies. The grants are intended to help those living in “the nation’s top 100 metropolitan areas” experiencing the worst foreclosure problems.
The HUD grant money is said to be mainly for counseling related to foreclosure prevention, but it will also go toward helping borrowers in trouble get assistance with application to Federal mortgage modification and loss mitigation programs, plus non-government sponsored programs.
The HUD press release says, “It will also support outreach and counseling efforts designed to identify and assist victims of mortgage modification scams, and report those cases to the applicable authorities.”
FHA home loan applicants don’t start the process thinking they might fall on hard times and default on the mortgage, but for those who do help is available. One of the key aspects of the FHA loan foreclosure avoidance counseling programs is that it is available for free. Borrowers should never pay for foreclosure avoidance counseling–contact the FHA to get a referral to an FHA/HUD approved agency near you.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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