Urban Institute Evaluation
A recent report showing the effectiveness of foreclosure prevention and intervention counseling – through NeighborWorks America’s National Foreclosure Mitigation Counseling (NFMC) program – was recently published by the Urban Institute. After a four-year study of the NFMC program, covering grant rounds 3 through 5, results showed the positive effects that counseling had on homeowners participating in the program.
Homeowners who received counseling through the NFMC program were more likely to cure a serious delinquency through a modification; in fact they were almost twice as likely to find a solution to their delinquency or foreclosure than those who did not receive counseling. The study also found that counseled homeowners had lower mortgage payments than those who did not receive counseling, and were more likely to stay current on their mortgages after the remedy was made. This was likely due in part to the lower monthly payments but also the budgeting and money management support provided.
SOURCE: Urban Institute