FHA Loan Articles

Should I Pay a Credit Counselor to Get Help With An Obama Mortgage?

With millions of Americans in need of help in the face of late home loan payments, loan default or even foreclosure, it’s easy to understand why borrowers seek professional financial help. Even with homeowner bailout programs like Hope For Homeowners and the Obama mortgage, there is still much confusion about which program to use and whether a borrower is eligible.

If you have an FHA loan, VA loan or any other government-insured loan product, you have plenty of free assistance through the Department of Housing and Urban Development’s hotline at 1-888-995-HOPE (4673). If you need assistance with a VA loan, you can call the Department of Veterans Affairs for help at 1-800-827-1000. Those who need help with issues related to the Obama mortgage or Making Home Affordable programs can get help from HUD at (202) 708-1112. The one thing you don’t have to do is pay someone to get help with these government programs.

In fact, the Making Home Affordable website warns people not to pay for assistance with Obama mortgage, whether you need refinancing or loan modification. All help with determining eligibility, getting complete information or submitting paperwork is available for free.

Have you been approached by someone who offers to provide housing counseling or loan modification for a fee? Don’t accept help from anyone charging a fee for these services. The same goes for companies or individuals who ask you to transfer the deed of your property to them in order to save the home. Always work directly with your mortgage company or loan officer to resolve home mortgage issues.

On the Making Home Affordable official website there is also a warning against paying your mortgage to anyone other than your lender without the approval of the finance company.

Government-initiated homeowner bailout programs are designed to help people in bad financial situations avoid going further into debt. Companies that charge a fee for assistance with programs like the Obama mortgage or Making Home Affordable are attempting to take advantage of confusion those in need of these programs often have.

Should you hire a financial counselor? In many cases professional advice on how to rearrange your spending and bill paying may be appropriate, but when it comes to any government program—HUD, VA loans, or FHA mortgages—you never need to pay to get information or advice on how to proceed. The government has all the information you need available without a fee.

FHA and VA loan holders should know there is pending legislation to offer similar homeowner assistance to that in the Making Home Affordable refinancing and loan modification programs. Watch this space for the latest developments.

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