Two weeks ago, 5,000 homeowners gathered at the Cow Palace arena in Daly City looking for a mortgage miracle from the Neighborhood Assistance Corporation of America, a Massachusetts-based nonprofit organization certified by the U.S. Department of Housing and Urban Development (HUD). As the home foreclosure epidemic claims more victims, homeowners are turning to loan modification programs in growing numbers. Many non-profit
organizations are providing free assistance for homeowners who are struggling with paying their mortgages, or who are at risk of losing their homes.More importantly, these organizations has set agreements with the key lending institutions holding troubled mortgages, such as Bank of America, Wells Fargo and Chase. Its counselors can go directly to the lenders to request loan modifications that reduce mortgage payments.
Homeowners in the East Bay will soon have a chance to get free help with their mortgages at an event in Oakland on Nov. 7. The NID-Housing Counseling Agency (www.nidonline.org) and the City of Oakland will host The Making Your Home Affordable Clinic where NID housing counselors will help homeowners modify their home loans with bank representatives at the event.
“We work to convert their mortgage payment so it is affordable for them,” says Latisha Malbrough of NID in Oakland. Headquartered in Oakland, NID operates in more than thirteen states and has counseled more than 15,000 persons or entities since 1995. The organization is one of 23 national HUD-approved agencies that provide mortgage counseling services free of charge. “NID’s creation was to fill a void in terms of serving minority homeowners and first time homeowners, “says Malbrough.
Two real examples from NID clients show the big difference a loan modification can make in monthly mortgage payments. One client who qualified for the government’s Making Home Affordable program reduced their mortgage payment from $1,924.56 (including taxes and insurance) to $744.01. Another client reduced their interest-only payment of $2,375 to $1,584.54.
For the many homeowners who do not qualify under the Making Home Affordable program, Malbrough says being denied is not the final answer. “Having the support of a HUD-certified housing counselor that offers free services can be instrumental in helping the homeowner develop the hardship application, submit to the bank on their behalf and advocate for a fair modification offer,” she says.
When asked if people should try to work with their bank directly, Malbrough says that homeowners should contact a HUD-approved agency. She suggests people go to www.hud.gov and search for a counseling agency. When working with any counselor or bank, Malbrough stresses that the process should be totally transparent. Loan modifications are being promoted heavily in the current real estate market and homeowners need to be careful who they choose to help them with their mortgage.
The Making Your Home Affordable event happens Saturday, November 7, 2009, from 10 am to 2 pm at Oakland City Hall, 1 Frank Ogawa Plaza.