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If you’re struggling to keep up with your mortgage payments, free help is available. This article will introduce you to the profession of housing counseling and describe the counseling process from start to finish.
What is a housing counselor?
In the U.S., the Department of Housing and Urban Development (HUD) certifies professional housing counselors to provide independent advice to individuals and families on a range of topics. All housing counselors work for one of the thousands of HUD-approved housing counseling agencies across the country. Housing counselors have been helping consumers for more than 50 years.
Who qualifies for housing counseling services?
Housing counseling is for everyone, regardless of age or income status. Housing counselors work with people experiencing homelessness, renters, first-time homebuyers, and existing homeowners.
How much does it cost?
Housing counseling is free for homeowners who are at risk of foreclosure. Housing counseling agencies receive funds from HUD to provide these services to you.
What is the purpose of housing counseling?
The goal of housing counseling is to provide you with information and insight so you can make informed choices about your housing. Housing counselors will not make decisions for you, but they will help you weigh the pros and cons of all available options.
How does housing counseling work?
The housing counseling process has a beginning, middle, and end. If you decide to enroll in counseling, start by calling a housing counseling agency to request services. A counselor or other staff member will greet you and ask some questions to get to know you and your housing situation. They will formally open a counseling case file and ask you to supply certain items such as a mortgage statement, bank statements, and a budget worksheet.
In the middle of the housing counseling process, you and your counselor will meet in person, on the phone, or by video to create a plan of action. If you are behind on your mortgage payments, your counselor will guide you to:
- Contact your lender
- Obtain a Request for Mortgage Assistance (RMA) application
- Return a complete RMA to the lender
- Maintain ongoing communication with your lender
Your counselor will contact your lender regularly to make sure it is processing your RMA according to established guidelines. If needed, and with your permission, your counselor may also negotiate with your lender.
Most importantly, your counselor will talk to you about all of the available workout options and discuss the benefits and drawbacks of each one so you can make the choice that’s best for you. If you choose a workout option that requires you to formalize a new financial agreement with your lender, your counselor will guide you through all of the necessary steps.
As you and your counselor work together, you will probably have many questions. Your counselor is available to answer your questions and provide referrals to other agencies and programs for additional help as needed.
You may be wondering if your housing counselor is also a case manager – that is, a professional who coordinates social services and advocates for you with other programs or agencies. While your counselor can point you in the direction of other social services, she/he will not arrange those services on your behalf. Your counselor will stay focused on her/his expertise, which is resolving housing problems.
You may also wonder if your housing counselor has funding to help you catch up on your mortgage payments. The answer is no. The role of the counselor is to be aware of all possible assistance programs – whether those programs are offered by your lender, government agencies, or private organizations – and inform you of the possibilities. The counselor is not responsible for determining your eligibility for assistance or promising any particular outcomes.
The final stage of housing counseling involves follow-up and formal closure. Once you have made a decision about how to resolve your mortgage delinquency, your counselor will contact you after a period of time to make sure you have no further questions. If you feel like all of your questions have been answered and you know how to proceed, the counselor will send you a formal letter or email to close your counseling file.
Is there much paperwork involved?
Housing counselors understand that stable housing is vital to your health and well-being. They are unique, trusted professionals who take your housing issues seriously. To provide the best possible advice, they need information that only you can provide, so paperwork such as mortgage statements, bank statements, and pay stubs are essential. Other documents such as counseling agreements and action plans ensure that you and your counselor are working together toward the same goals.
How long does counseling last?
Counseling services may be brief or more involved. With the guidance of a housing counselor, some homeowners are able to find a relatively quick resolution to their mortgage problems. Other homeowners have complex situations and need more time to communicate with their lenders and counselors as they decide on the best path forward. As long as you stay in contact with your counselor and follow through with your plan of action, your counselor will keep your file open and work in partnership with you.
Summary
Housing counselors are trusted professionals who specialize in resolving housing issues. You and your family are eligible for free housing counseling, regardless of your age, income, or current housing status. The purpose of counseling is to give you unbiased information so that you can make the best possible decisions about your housing situation. While counselors cannot give you money to pay your mortgage, they are available to offer expert advice and actively work with you toward your housing goals.