Loss Mitigation Counseling Now Available to Assist
Reverse Mortgage Borrowers with Delinquent Property Charges
Washington, DC – April 12, 2011 – (RealEstateRama) — The National Foundation for Credit Counseling (NFCC) is the recipient of a Housing and Urban Development (HUD) program grant to assist seniors who have taken out a Home Equity Conversion Mortgage (HECM) and who are delinquent on their property charges, such as taxes and insurance, thus putting their home in danger of foreclosure.
The HECM product, also known as a reverse mortgage, allows seniors age 62 and above to tap into the equity in their home without having to vacate the property, and is often used as a tool to increase cash-flow for this age group. In the recent years, many seniors found themselves in a position where they were house rich, but cash poor, and sought relief through a reverse mortgage.
“Seniors were not immune to the financial woes that have plagued Americans for the past few years, as many saw their retirement plans decimated by the downturn on Wall Street,” said Gail Cunningham, spokesperson for the NFCC. “Some are still struggling to keep their home, even after tapping into the resources generated by the reverse mortgage. This new program is geared to help people cure their tax and insurance delinquencies and remain in their house, something that benefits the individual and the community.”
The HUD regulations contain specific requirements governing the payment of property charges by the mortgagor. This federal program provides additional loss mitigation options available to the borrowers who have a delinquent mortgage due to unpaid property charges.
The NFCC has recruited 25 of its most qualified HECM and loss mitigation counselors from 14 different NFCC Member Agencies across the country to be available as resources for these borrowers, and has created a dedicated toll-free number that consumers should call for assistance (1-866-363-2227).
Through this pilot program, counselors work with the HECM borrowers who are delinquent on their real estate taxes, property insurance, or any other property charges or special assessments such as condominium fees, homeowner’s association dues, etc. Assistance is provided at no cost to resolve the delinquency, determine the options for additional financial assistance, explore other housing options, identify resources to provide transitional housing guidance and when appropriate, refer the borrower to a local Area Agency on Aging (AAA) for additional guidance and counseling to assist with the transition.
“Servicers are required to notify by letter all HECM borrowers who are delinquent on their taxes and insurance by April 29. Homeowners who have been notified, or those who are in danger of falling behind on their property charges, thus putting their home at risk of foreclosure, should reach out for this free help immediately,” continued Cunningham.
Do not risk losing your home due to property charge delinquencies. Reach out to an experienced and certified HECM and loss mitigation housing counselor by dialing1-866-363-2227.
The National Foundation for Credit Counseling (NFCC), founded in 1951, is the nation’s largest and longest serving national nonprofit credit counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior and build capacity for its Members to deliver the highest quality financial education and counseling services. NFCC Members annually help over three million consumers through close to 800 community-based offices nationwide. For free and affordable confidential advice through a reputable NFCC Member, call (800) 388-2227, (en Español (800) 682-9832) or visit www.nfcc.org. Visit us on Facebook at http://www.facebook.com/NFCCDebtAdvice and on Twitter at http://twitter.com/NFCCDebtAdvice.