Report: Foreclosure Counseling Nearly Doubles Chances of Mortgage Modification, Reduces Likelihood of Re-default by at least 67 Percent

Washington, DC – December 19, 2011 – (RealEstateRama) — A report issued today by NeighborWorks America prepared by the Urban Institute on the consumer benefits of the National Foreclosure Mitigation Counseling (NFMC) Program shows that homeowners who received NFMC counseling were nearly twice as likely to obtain a mortgage modification and at least 67 percent more likely to remain current on their mortgage nine months after receiving one, saving servicers considerable time and expense. The data compares the results against homeowners who obtained a mortgage modification without the assistance of an NFMC foreclosure prevention counselor. The report also showed that homeowners received, on average, a mortgage modification that lowered their payment by $176 more per month, than homeowners who didn’t work with an NFMC counselor – a savings of close to $2,100 a year.