Foreclosure - Counseling Organizations Help Foreclosure Victims In Elizabeth

Counseling Organizations Help Foreclosure Victims In Elizabeth

March 31st, 2008

The efforts of NeighborWorks are beginning to show effects. Brand New Day, based in New Jersey, is part of its network in Elizabeth. It stressed that families in the grip of foreclosures should be the ones to take the initial step and contact counseling organizations that are certified. The latter have a proven record of having helped house owners by counseling them to modify loans or seek out other alternatives in the wake of the foreclosure crisis.

Krishna Garlic is the executive director of Brand New Day. She stressed that lately it has become imperative that the distressed families seek out certified counselors who have uppermost in their minds the welfare of the borrowers. In the market today there are many dubious and shrewd schemes that dupe the victims and make the situation worse for them. But housing counselors who are part of non-profit agencies have been with the community for many years and have a good track record. They can help. But it is the house owner who has to first knock on their doors.

Krishna went on to add that of late her group had helped a self employed person whose adjustable mortgage rate had shot up to unaffordable levels. It came at a time when his business performance was at an all time low. Unable to refinance because of the mortgage industry and banks reeling under a credit crunch the person was in a state of despair. Even at the best of times those who are self employed have difficulty obtaining loans. It was out of the question for him in this situation of foreclosure crisis. But one of the counselors of Brand New Day worked with him for two months compiling papers to show his credit worthiness to the lender. The result was positive. He could avail of loan modification.

In Freehold, New Jersey, President Bush in a press conference highlighted the success story of the teaming up of non-profit counseling agencies and lenders. Penny Meredith, of Brand New Day and the above mentioned house owner attended the press conference.

Most of the 230 counseling groups under NeighborWorks are active in their efforts. Marietta Rodriguez, the national director of Homeownership Programs at NeighborWorks is all praise for the way the counselors are finding out various routes of escape. Sometimes all that is required is proper budgeting, or a small rescue fund.