NeighborWorks America has released a study by the Washington, DC-based Urban Institute. The study is based on the analysis of nearly 240,000 homeowners who received counseling through the National Foreclosure Mitigation Counseling program. More than 1.8 million homeowners have been helped by the NFMC program, administered by NeighborWorks America since 2008.
- Homeowners who work with housing counselors are, on average, almost three times more likely to obtain a money-saving mortgage modification.
- The probability of completing a short sale once started was 21% greater when working with a housing counselor.
- By working with a housing counselor a homeowner is nearly twice as likely to get caught up on missed mortgage payments and about 60 percent less likely to fall behind again.
- Nearly two-thirds of the 151,000 loan modifications that NFMC clients received would not have happened at all without the assistance of their counselor.