HUD Releases MBA-Sponsored Guide to Help Homeowners Avoid Foreclosure

HUD this week released the Homeowners Guide to Success as part of a public-private partnership between federal agencies and industry partners, including the Mortgage Bankers Association.

The guide provides homeowners with information on the critical first steps to take if they are at risk of missing a mortgage payment or facing foreclosure.

“This guide arms consumers with easy to understand, reliable information about the assistance available to help them keep their homes,” said HUD Secretary Ben Carson. “Valuable information like this can make a tremendous difference in the lives of homeowners who may be faced with foreclosure.”

This guide ensures homeowners will have resources at their fingertips and will be ready and responsible for the next steps. The guide also covers the value of HUD-approved housing counseling agencies, which offer free assistance to consumers and help borrowers find housing counselors and avoid scams.

As families recover from the recent hurricanes and are more likely to be targeted by scams, a HUD-approved housing counselor can assist them through the process of purchasing or keeping a home. Independent research shows that borrowers working with a HUD-approved housing counseling agency are more likely to avoid foreclosure than borrowers who do not seek housing counseling.

“Steering consumers away from fraudulent schemes is especially important when they are already facing the difficult situation of not being able to make their mortgage payment,” said Sarah Gerecke, Deputy Assistant Secretary for the Office of Housing Counseling at HUD.

As part of the partnership between HUD, Department of Veterans Affairs, Department of Agriculture, the Treasury Department, the Consumer Financial Protection Bureau, Federal Housing Finance Agency, MBA and housing counseling agencies, the guide will be available on federal agency and industry partner websites.

The Guide is available at https://www.hudexchange.info/resources/documents/Homeowners-Guide-to-Success.pdf.