ATLANTA, March 6, 2012 (GLOBE NEWSWIRE) -- More homeowners called CredAbility for housing counseling in the first two months of 2012 as "underwater" homeowners seek help to refinance their mortgage and others inquire about options to reduce the principal amount on their mortgage or achieve a loan modification.
CredAbility, a national nonprofit organization that offers free counseling to homeowners, counseled 6,433 homeowners in February. This is a 16% increase compared to January – even though there were two fewer days in February – and the highest monthly total since June 2011. Homeowners can speak with a CredAbility counselor 24/7 online at www.CredAbility.org or by calling 800.251.2227.
"In the past several weeks, demand for counseling has increased for several reasons," said Michelle Jones, senior vice president of counseling for CredAbility. "We hearing from more homeowners who are "underwater" who have a real opportunity to reduce their interest rates and monthly payments. Other homeowners want to know about possible principal reduction options, while others with new jobs are seeking loan modifications."
Homeowners who are current on their mortgage payments want to find out if they qualify for the Home Affordable Refinancing Program (HARP) 2.0. This program is intended to help borrowers who owe significantly more on their home than its current value. HARP 2.0 expands the original program, which was created to help borrowers who owed up to 125% of their home's market value to refinance their mortgage. HARP 2.0 removes the 125% cap, allowing borrowers who are deeply underwater to get a new mortgage at a lower interest rate and with more affordable monthly payments. To qualify, borrowers must have either a Freddie Mac or Fannie Mae-backed mortgage.
Other homeowners who are current on their payments have read about the recent $25 billion foreclosure settlement by five major US banks and want to know if they may qualify for a $20,000 principal reduction. Homeowners will not be selected for that program until later this year. However, homeowners may qualify for a principal reduction as part of the Home Affordable Modification Program (HAMP). Homeowners with mortgages owned by Fannie Mae or Freddie Mac do not qualify for this program.
A third group of homeowners seeking counseling this year are those with new jobs who had fallen behind on their mortgage payments while unemployed or underemployed. According to the U.S. Bureau of Labor Statistics, 2.3 million more Americans were employed in January 2012 vs. the same period in 2011. Some of these homeowners are seeking to determine if they can qualify for a loan modification.
CredAbility is approved by the U.S. Department of Housing & Urban Development and has more than 100 certified housing counselors.
About CredAbility
CredAbility is one of the leading nonprofit credit counseling and education agencies in the United States, serving clients in all 50 states plus Guam, Puerto Rico and the US Virgin Islands, in both English and Spanish. In addition to providing counseling via telephone and internet, CredAbility operates 28 offices across the southeast, including 25 offices where people can receive in-person counseling.
CredAbility is a family of Consumer Credit Counseling Service agencies that include CCCS of Greater Atlanta, CCCS of Central Florida and the Florida Gulf Coast, CCCS of Palm Beach County and the Treasure Coast, CCCS of East Tennessee and CCCS of Central Mississippi.
CredAbility is accredited by the Council on Accreditation and is a member of the Better Business Bureau and the National Foundation for Credit Counseling (NFCC). Governed by a community-based board of directors, CredAbility is funded by creditors, clients, contributors and grants from foundations, businesses and government agencies. /CredAbility provides 24/7 service by phone at 800.251.2227 and online at www.CredAbility.org.
The CredAbility logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11910
Contact:
Scott Scredon
404.653.8833 office
770.315.0745 cell
Scott.Scredon@CredAbility.org
John McCosh
404.260.3108 office
404.272.0010 cell
John.McCosh@CredAbility.org
A file accompanying this release is available at:
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