MORTGAGE FORECLOSURE

Here was another situation I was faced with at the foreclosure clinic this week: a homeowner was seeking a modification and paid an attorney around $3,000 to do the work. Obviously, the homeowner did not know, and was not advised, that these services are available for free. From the HUD web site:

"Foreclosure Avoidance Counseling

HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama's comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home.

If you need help understanding the Making Home Affordable programs, you can use this search tool to find a counseling agency in your area that will provide you with free foreclosure prevention services. If you are eligible for the loan modification or refinance program, the counselor will work with you to compile an intake package for your servicer.

Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services."

The search tool is available at this site:

http://www.hud.gov/offices/hsg/sfh/hcc/fc/index.cfm