“Last year, LIHS counseled a total of 146 clients with Conventional or FHA loans that were in default and facing foreclosure action. Our goals include educating the homeowner about how to prevent homelessness and minimize losses, to educate consumers to make choices affordable and realistic according to means and options available while avoiding predatory and abusive lenders and products. We teach homeowners how to budget their income and expenses, negotiate with lenders for workouts, forbearance, streamlining, restructuring debt, and/or loan modification. If, after counseling, a client's home cannot be saved, our counselors advise the homeowner as to options available to negotiate a deed in lieu of foreclosure or a pre-foreclosure sale. LIHS counsels clients on their liabilities and credit repercussions should one abandon their home and financial obligations.
A variety of factors can cause serious delinquencies. In cases of predatory or abusive high loan terms, LIHS has expended a great deal of its resources in trying to intervene with the lender, report to the government or gain legal counsel to challenge unlawful practices.
Benefits to clients: avoid foreclosure that will allow family to halt any further disruption of family/financial stability. Delinquency, default, and foreclosure are tremendously disruptive to the family's psychological and physical well being. In addition, the possible successful results of counseling (renegotiated loan terms, forbearance, etc.) allow the owner to recover without adducing additional penalizing fees and threats.”