Well, it looks like there goes the free loan modification help. With congress on the verge of a slash and burn budget campaign it appears that $88 million will be cut from the HUD budget. This means that, in the middle of the housing crisis, the funding which goes to local HUD approved housing counseling agencies, intermediaries, and state housing finance agencies for prepurchase, rental, reverse mortgage, and foreclosure counseling will not be available.
Before we totally sound the alarm, we got clarification that the HUD funding under discussion would fund 2012 housing counseling, meaning that the current funding for 2011 remains in place. We also hear that National Foreclosure Mitigation Counseling Program got $65M in funding.
Still, anyone who thinks that people won’t need to counselor assistance for loan mods, foreclosure assistance and the like in 2012 better take a good look at the possible adjustable loans still on the horizon. Let’s not forget that many people with normal fixed rate loans can’t pay their mortgage if they lose or don’t have a job.
If the counseling budgets do get slashed people can always turn to the banks for loan modification assistance but without a counselor that’s like getting a loan without a loan officer or selling a property with a real estate agent.