HUD ANNOUNCES INITIATIVE DESIGNED TO ASSIST HOMEOWNERS FACING FINANCIAL HARDSHIP

The homeowner counseling effort is designed to help avoid defaults on mortgages insured by HUD's Federal Housing Administration (FHA).

"When financial troubles appear, borrowers need reassurance and assistance in handling their debt," said HUD Assistant Secretary/FHA Commissioner Nicolas P. Retsinas. "Early assistance from housing counselors will help to alert families to the danger of mortgage default and help them avoid it."

HUD-approved housing counseling agencies can advise families of the alternatives available when default looms. These agencies often have long-standing relationships in local business communities and have experience in producing debt payment plans that enable homeowners to retain their homes.

Under an agreement with HUD, the National Consumer Law Center, will conduct 10 14-hour regional training sessions to instruct counselors in techniques to avoid foreclosure, using HUD's loss mitigation tools. NCLC, a non-profit organization, advocates nationwide on behalf of low-income consumers to prevent unnecessary foreclosures and has trained hundreds of housing counselors on default counseling methods.