Today, NeighborWorks America, a nonpartisan, nonprofit organization that provides access to homeownership and to safe and affordable rental housing, announced the National Foreclosure Mitigation Counseling awarded almost $40 million to 21 state housing finance agencies, 19 HUD-approved housing counseling intermediaries and 60 community-based NeighborWorks organizations to provide counseling to families and individuals who are working with their servicers to avoid foreclosures.
The foreclosure rate slowed down, in fact, there were fewer foreclosure proceedings initiated during the month of April than in any month in the last 10 years, a new report from Black Knight Financial Services shows.
That being said, many are still struggling with the ever rising home prices.
“Home prices continue to climb at more than twice the rate of inflation,” said David Blitzer, Index Committee at S&P Dow Jones Indices managing director and chairman.
Homeowners who work with NFMC counselors were nearly twice as likely to cure a serious delinquency or foreclosure, and nearly three times as likely to receive a modification cure, according to a study by the Urban Institute for NeighborWorks.
An estimated 122,000 families facing foreclosures will be directly assisted through this funding.
Unfortunately, demand was more than twice funds available in this program round, reaching nearly $84 million.
Overall, over 840 nonprofit counseling agencies and local NeighborWorks organizations who provide free assistance to families at risk of losing their home are expected to engage in the program. These organizations will determine homeowner eligibility for the various state and federal foreclosure prevention assistance programs, help homeowners understand the foreclosure process and identify possible courses of action for homeowners to make informed decisions.
In addition, many more families will be helped with the program’s addition of 1,600 counselors this round.