NHS Launches Mortgage Relief Campaign

The Neighborhood Housing Services (NHS) help provide classes that educate clients in understanding what they can afford, the power of their credit score and what to expect throughout their home buying experience. A recent study found that homeowners receiving education and one-on-one counseling from a HUD-certified housing counseling agency are one-third less likely to become 90 plus days delinquent on their mortgages.
The Neighborhood Housing Services (NHS) help provide classes that educate clients in understanding what they can afford, the power of their credit score and what to expect throughout their home buying experience. A recent study found that homeowners receiving education and one-on-one counseling from a HUD-certified housing counseling agency are one-third less likely to become 90 plus days delinquent on their mortgages.

NHS Launches Mortgage Relief Campaign

By Safiyyah P. Muhammad

The Neighborhood Housing Services of Chicago (NHS) is launching a campaign to provide relief to Chicago and South suburban homeowners. The NHS Mortgage Relief program is set to help homeowners know their mortgage options before some of the programs expire on December 30, 2016.

“Several programs are available to help homeowners who risk losing their home to foreclosure or are struggling to make their payments,” said Karen Woods, NHS director of home ownership services. “It’s important that homeowners do not delay seeking assistance. We understand they may not be aware of the tools available, but NHS can help connect homeowners to mortgage relief solutions and help navigate the process.”

According to a NHS press release, the programs include, but are not limited, to Home Affordable Modification Program (HAMP), which helps financially struggling homeowners avoid foreclosure by modifying loans to a level that is affordable to borrowers.

The Home Affordable Refinancing Program (HARP) enables borrowers with little or no equity to refinance into more affordable mortgages without new or additional mortgage insurance.

The Illinois Hardest Hit Fun provides mortgage assistance to homeowners who have experienced at least a 15 percent reduction in their income due to a hardship event.

Another program NHS offers is I-Refi, which helps income-ineligible homeowners who are current on their mortgage payments, but owe more than what their home is worth due to declining property value in their community.

“At NHS, we educate prospective homebuyers by providing free, homebuyer education classes and one on- one consultation,” said Wanda Collins, manager of homeownership services at NHS.

“Our classes help educate clients in understanding what they can a¦ord, the power of their credit score and what to expect throughout the home buying process.”

Collins said that research has shown that homeowners who participate in homebuyer education and counseling are more successfully than those who do not.

Collins also cited a recent study that found homeowners who receive education and one-one counseling from a HUD-certified housing counseling agency are one-third less likely to become 90 plus days delinquent on their mortgages over two years. Collins said that at the current time there is no state legislation that helps low-to-moderate income families avoid or alleviate foreclosure, but she did say that Attorney General Lisa Madigan was instrumental in filing several lawsuits where it was determined certain communities were targeted through predatory lending practices.

The money received from the national settlements contributed to foreclosure relief efforts Collins said. Many people believe that when buying the home, the buyer must have perfect credit. NHS works to help clients understand the importance of having good credit.

“Clients do not need to have perfect credit score when applying for a home loan. However, a bank looks for compensating factors when reviewing a loan application,” she said.

She further explained the scenario of having good credit. “For example, a single medical collection for $300 with no additional credit blemishes may not negatively impact a person’s ability to secure a mortgage, but an applicant who has had recent late payments on their credit cards may find it more difficult. There are also nonprofit mortgage lenders like our affiliate Neighborhood Lending Services that do not rely solely on credit scores, but rather examine a prospective home buyer’s entire financial picture.”

According to a NHS press release, Chicago is among U.S. cities with the highest underwater mortgage rates.

Collins said, “People who are underwater, meaning that they owe more than their home is worth, need to understand that there are mortgage solutions available to help them. The first step is to contact a housing counseling agency like NHS to understand their options. There are programs that offer principal reductions, loan modifications or grants to help pay their mortgage.

“At NHS, we believe knowledge is power when it comes to the home buying process. That is why we educate prospective homebuyers before they purchase a home so they are prepared,” Collins said.

For more information, call the NHS Mortgage Relief Hotline at 773-329-4220 or visit nhschicago.org.”

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