In today's post-crisis environment, there are many homeowners who are still struggling with their mortgage payments. A survey by Money Management International asked 1,019 consumers nationwide about their their reactions to struggling mortgage payments.
Twenty-five percent of survey respondents stated that they or someone they knew needed assistance with mortgage payments since 2008. When asked who they turned to for payment assistance, the majority of the respondents listed family and friends, followed by lenders and housing counselors.
Further, surveyed respondents stated that some of their greatest concerns when seeking mortgage assistance included fraudulent services or scams, services that were too expensive or not worth the value they provided and services that were too complicated or provided solutions that they did not understand.
The survey also found that 63 percent of respondents seeking help for mortgage payments did so after they were one to three months late on payments. This indicates the need for increased mortgage counseling and awareness about funding opportunities available to help with debt before consumers find themselves in the situation of missed payments.
"Homeowners face real concerns when considering who to turn to for help with mortgage troubles," said Jo Kerstetter, vice president of education and community relations for MMI.
Many of these borrowers don't realize the programs and services that are available for them through the U.S. Housing and Urban Development agency. The Housing and Urban Development agency provides certification for counselors interested in helping struggling homeowners with their mortgage payments. These counselors can also provide consumers with financial planning advice as well.
The U.S Housing and Development agencies services are an extension of President Obama's Homeowner Affordability and Stability Plan (HASP). HASP is a $75 billion dollar federally funded program, designed to provide relief to homeowners and to set a framework for relief plans for homeowners affected by the financial crisis and ensuing mortgage defaults.
The HASP plan provides help for struggling consumers through its Making Homes Affordable provision which allows eligible borrowers to make home loan modifications, lowering their interest rate and reducing their monthly payments. The provision also provides refinancing options as well as solutions for foreclosures that can help consumers improve their credit situation.
