Surveys Have Shown that Housing Counseling is a Better Option for Foreclosure Victims
Surveys have shown that housing counseling is a better option for foreclosure victims and there is a higher chance that a borrower who is distressed will be subject to an alternative plan or an adjustment to his loan.
More often than not, these counseling sessions are favourable in terms of leading the borrower to terms which are better and can be sustained. Another essential factor, as suggested by the studies carried out by Homeownership Preservation Foundation (HPF) is that housing counseling plays a major role in enhancing the level of the borrower’s confidence, as a result of which, he tends to perform much better in the future.
The aforementioned organization is a nonprofit based organization which concentrates on aiding distressed homeowners so that they do not have to be part of the foreclosure crisis.
One may reach the organization at its national hot-line (888-995-HOPE). As previously mentioned, this group points out that its latest studies show that there is “a surprising level of financial optimism” amongst property owners who call HPF for housing counseling to avoid foreclosure.
Over 50% of the survey participants said that their gross household earnings had considerably gone downhill as opposed to what they earned till about a year back. Around 88% expressed their concerns and doubts as to how much they would actually be able to pay up on their debt.
Irrespective of these high numbers who were deeply worried about their loan payments, there were still nearly 71 percent of respondents who were pretty confident that their property would be cleared of their debts in maximum a year.
Adding to it, there were a large portion of people (58%) who believed that they would probably be in a more stable financial condition and it would improve over the following year. There were quite a few reasons for what may seem like high hopes.
The most common reason behind it was that there was an anticipated decrease in the mortgage payments – this was why they believed that their finances would be in a better position. Some also expected to get employment, or perhaps even a raise at work!
Colleen Hernandez is CEO presiding over at HPF. According to her, she is a firm believer that owning a home is still clearly the most integral part of what may be termed as the ‘American Dream’. She says, “The results of HPF’s Homeowner Sentiment Survey underscore an undeniable sense of optimism and financial confidence among individuals who call us for foreclosure prevention counseling”.
