The role of housing counselor is to provide tools so that renters, homeowners and perspective homeowners can be financially prepared to manage their housing needs. Housing Counseling Agencies (HCA’s) have trained counselors, approved by Department of Housing and Urban Development (HUD), who meet face to face with homeowners or potential homeowners to assist them in making responsible decisions concerning their housing needs no matter what is happening with their finances.
A housing counselor can:
- Offer advice in the areas of buying a home, keeping a home, refinancing a home loan, or foreclosing on a home.
- Provide tips on a variety of topics including credit issues, buying and/or renting, reverse mortgages, default and foreclosure prevention.
- Review an existing budget or assist in developing a budget that focuses on reducing expenses such as consolidating existing debt or lowering payments.
- Assist people with identifying lending options, reviewing loan offers and terms, and help clients choose a loan that best meets their needs.
Where does the housing counselor start?
The housing counselor will start by helping you asses your financial situation. Inventory will be taken on your debts, expenses, income, and resources. If there are identified issues such as compulsive spending, controlling debt, or debt that is too high to repay they can make referrals to services that can provide further assistance.
Struggling to pay your monthly mortgage?
The housing counselor can help you make a budget so you can meet your monthly expenses including your mortgage loan. If you are having trouble paying your mortgage loan the housing counselor has access to information about the latest plans and programs to aid homeowners and will assist you in making a plan to get the help you need. This may include preparing you to talk with your mortgage company, looking at the option of loan modification or identify other local services that offer assistance.
Foreclosure prevention counseling and homeless counseling services are provided free of charge by HCA’s who are working in partnership with HUD. Housing Counseling Agencies are allowed to charge “reasonable fees” for other forms of housing counseling and education services as long as they comply with specific conditions.
- Agencies must provide counseling without charge to persons who demonstrate they cannot afford the fees;
- Agencies must inform clients of the fee structure in advance of providing services;
- Fees must be equal to the level of services provided.
Help is out there by way of a HUD-approved housing counselor. So take the opportunity to contact a housing counselor and make a plan to meet your commitments with confidence.
Need to locate a housing counselor? Search by zip code for a list of approved Department of Housing and Urban Development (HUD) counseling agencies at this website – http://www.consumerfinance.gov/find-a-housing-counselor/.
