Demand for Counseling Funds Far Exceeds Supply
WASHINGTON, April 16, 2013 /PRNewswire-USNewswire/ -- NeighborWorks America today announced that $70.1 million has been awarded to 30 state housing finance agencies (HFAs), 17 HUD-approved housing counseling intermediaries, and 72 community-based NeighborWorks organizations to provide counseling to families and individuals facing the threat of foreclosure. Just one month after the seventh round of National Foreclosure Mitigation Counseling (NFMC) Program funds were appropriated, communities across our country will be able to put the funds to immediate use.
When foreclosure is likely to affect more than one million people this year, the need for the NFMC funding is critical. Demand for NFMC grant funds remains high, with eligible applicants requesting more than $105 million in NFMC grant funds.
These grants are especially timely now, during Financial Literacy Month, since being aware of your financial options, including foreclosure prevention options, is what NeighborWorks America and the NeighborWorks network help families do every day.
In total, more than 1,200 nonprofit counseling agencies and local NeighborWorks organizations across the country are expected to be engaged in the NFMC Program as a result of these awards. These organizations provide invaluable, free assistance to families at risk of losing their homes, determine homeowner eligibility for the various state and federal foreclosure prevention assistance programs, help homeowners understand the complex foreclosure process, and identify possible courses of action so their homeowner clients can make informed decisions and take action.
To date, more than 1,560,000 families in all 50 states, Puerto Rico and Washington, D.C. have received foreclosure counseling through the NFMC Program. It is estimated that nearly 193,000 families facing the threat of foreclosure will be directly assisted with this seventh round of funding. Many more will be helped by the training of foreclosure counselors, provided through the NFMC Program. NeighborWorks expects to train 2,000 counselors with the seventh round of NFMC funding.
NFMC foreclosure prevention funding supports counseling that helps families through the long and complicated foreclosure process. NeighborWorks America believes that a number of these families might not have fallen into foreclosure if they had the benefit of NeighborWorks pre-purchase housing counseling and education prior to becoming homeowners.
Last month, NeighborWorks America released new research on the effectiveness of NeighborWorks pre-purchase housing counseling and education. The research showed an average 33 percent decline in serious mortgage delinquency for homeowners who received NeighborWorks pre-purchase guidance compared to similar homeowners who didn't receive the same NeighborWorks pre-purchase help.
NFMC awardees are listed and more information is available at www.nw.org/nfmc.
About NeighborWorks America
For 35 years, NeighborWorks America has created opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. In the last five years, NeighborWorks organizations have generated more than $19.5 billion in reinvestment in these communities. NeighborWorks America is the nation's leading trainer of community development and affordable housing professionals.
SOURCE NeighborWorks America