Free counseling can help struggling homeowners try to find ways to keep their homes: The U.S. Department of Housing and Urban Development (HUD) provides a list of government-approved counselors on its website, .
The counselors often know of special programs that lenders don’t, said Kevin Maher, director of community education for the nonprofit Consumer Credit Management Services in Delray Beach, Fla.
His counseling agency was among those giving free help recently to hundreds who stood in line at a Help for Homeowners Community Event in Hollywood, Fla. The event brought out an overflowing crowd: 1,333 homeowners when organizers had only expected about 1,000.
Counselors know about HUD, Fannie Mae and Freddie Mac programs, Maher said. They also keep up-to-date on what local agencies are offering.
If people are in foreclosure, the courts offer free mediation, added Diane Stephenson, foreclosure prevention services manager at Maher’s Consumer Credit agency. “It’s in the best interests of the people to take advantage of the mediation,” she said.
There are also programs to help the unemployed or underemployed, Maher said.
The Obama Administration has a new program, starting Aug. 1, that will give unemployed homeowners with FHA loans a break on part or all of their mortgage payments for up to 12 months.
To qualify, the unemployed will have to be 90-days delinquent on their loans, said Brian Sullivan, a U.S. Housing and Urban Development spokesman.
Those mortgage companies participating in the Making Home Affordable Program will also be required to give the year-long reprieve “whenever possible,” according to a HUD statement.