The Washington Post reported yesterday that a new report published by the Urban Institute shows homeowners having difficulty making their mortgage payments are 60 percent more likely to avoid foreclosure if they receive homeownership counseling than those who do not.
Those receiving counseling are also 60 percent more likely to have their mortgage payments lowered "significantly."
The report looks at the effects of $300 million distributed to 1,700 non-profit housing counseling organizations since 2007 as part of the federal National Foreclosure Mitigation Counseling program.
Homeowners who received counseling and a loan modification had their monthly mortgage payments reduced by an average of $454 more than those who did not receive counseling.
Congress has budgeted $356 million for the foreclosure prevention counseling program, and is considering boosting that amount by $60 million next fiscal year.
According to NeighborWorks, approximately 730,000 homeowners have received help through the program.
In Vermont, NeighborWorks operates a number of HomeOwnership Centers where Vermonters can receive homebuyer education and financial counseling. Contact a center near you by visiting the HomeOwnership Centers of Vermont Web site.