LEXINGTON, Ky. (June 26, 2012) — Community Ventures Corporation (CVC) reported today that it has provided foreclosure prevention counseling to more than 1,700 since bringing the National Foreclosure Mitigation Counseling (NFMC) program in its community in 2008.
Nationally, the NFMC program has helped more than 1.3 million homeowners – slightly more than half of whom are women-headed households. The NFMC program was created by Congress in December 2007 and is administered by NeighborWorks America, one of the nation’s largest nonprofit community development corporations.
The foreclosure situation in Kentucky’s cities including Lexington, Ashland, Elizabethtown and Bowling Green continues at an unacceptable pace, according to Lexington-based Community Ventures, and it is very important that homeowners facing financial difficulties connect early with a housing counselor from CVC.
“We keep thinking we are ahead of the curve on this foreclosure crisis, but as soon as one factor seems to get resolved, like the robo-signing by some banks, another one shows up, like new factory and business closings,” said Kevin R. Smith, CVC’s president and CEO.
“The NFMC program is a remarkable success, helping more than 1.3 million homeowners,” said NeighborWorks America CEO Eileen Fitzgerald. “The program has had a real effect on families. The average homeowner who receives NFMC program help saves $2,100 each year after getting her mortgage modified, compared to a homeowner who doesn’t work with a NFMC counselor and obtains a mortgage modification. In all, it’s estimated that homeowners save more than $370 million annually because of the work of Community Ventures Corporation and other NFMC program organizations.”
The full report on homeowner savings is available at www.nw.org/nfmc.
Foreclosure prevention roadblocks persist
Obstacles remain to CVC doing even more to help homeowners, Smith said. For example, he said, although the servicing industry has significantly increased its response time, outreach tactics and overall synergy with Community Ventures Corporation, the greatest challenge continues to involve servicer responsiveness.
And with the loss of or reduction in income still the top reasons for homeowners to fall behind on their mortgages, Smith said homeowners’ resources are an obstacle to successfully preventing foreclosure.
Avoid foreclosure-related scams
The latest NFMC report released by NeighborWorks America stresses that the best resource for homeowners in danger of foreclosure is a HUD-approved housing counselor. Homeowners should not pay for foreclosure prevention services. People or organizations who charge a fee often are scams.
For tips on how to avoid a foreclosure or mortgage modification scam, visit www.loanscamalert.org .
To find a free foreclosure prevention counselor working with the NFMC program, visit www.findaforeclosurecounselor.org.
For more information about foreclosure assistance and other services offered by Community Ventures Corporation, call 1-800-299-0267 or visit www.cvcky.org. CVC also has offices in Bowling Green, Campbellsville, Henderson, Louisville and Paris.