Grants Flowing In To Stop Foreclosures

March 12th, 2008 | Tags: Real Estate

A national foreclosure prevention service has granted $139,200 to Consumer Credit Counseling Service of Northern Colorado and South East Wyoming. The National Foundation for Credit Counseling by NeighborWorks has been given the task of distribution $15 million to various organizations that deal with foreclosure victims. Consumer Credit Counseling provides free counseling at six localities and is partly supported by United way. This non profit group is a member of Colorado Foreclosure Hotline and Colorado Foreclosure Prevention Task Force.

Consumer Credit Counseling has an office in Loveland – 315E 7th Street. With this grant it will be able to reach out effectively to more customers said Heather Green, the director. The extended programmes will focus on Longmont and Greeley. Green explained that the crux of the problem is to reach the people when theyare in default and the figure is low enough to be solved. With each passing day the amount increases letting the situation go out of hand. Since the past two years the numbers seeking help have considerably gone up. From 728 in 2006 it went up to 998 in 2007. The first two months has already seen 138 cases come in – that calculates to 41% higher than what it was in February the previous year. With the work pressure increasing more assistants will have to be hired. It is being mulled over by the heads concerned.

Credit Counseling made its debut in 1984 in Fort Collins. It also gives advice about bankruptcy related matters in its management and educational workshops. Its grant of $130 million is a federal sanctioned fund coming through NeighborWorks.

The country is reeling under foreclosure tsunami and since the entire society is affected all are sitting up to do something about it starting from local, state, and community levels to the federal heights. When a month’s payment is missed the mortgage is said to go into default. It becomes delinquent when 90 days have been missed. At this stage a foreclosure notice is issue. The foreclosure is a legal step by which, through the court, the lender realizes dues by selling the house. A foreclosure is bad for credit ratings. The borrower loses all chances of regaining position so as to avail of another loan to set up a home again. As such it is imperative that foreclosures should to be avoided. To do so steps must be taken as soon as danger signals blink.