CredAbility is offering free HECM counseling for borrowers in default from failure to pay their taxes and insurance said the agency on Thursday.
Between late January and early April, lenders will be sending this group of borrowers a letter explaining that they are in default, advising them to call a nonprofit reverse mortgage counseling agency.
CredAbility is one of only five national nonprofit housing counseling organizations – including Neighborworks, NFCC, Money Management International, and National Council of Aging – approved by the Department of Housing and Urban Development to provide free counseling to any homeowner struggling with these tax and default issues. To fund the initiative, HUD is providing $3 million specifically for this type of counseling.
“Reverse mortgage counselors at nonprofit housing counseling agencies have special training in these unique products, and can help homeowners understand all of their options when faced with the possibility of foreclosure,” said Michelle Jones, senior vice president of Counseling for CredAbility. “We will review each homeowner’s financial situation in detail, explaining the options that may be available to them to help save their home.”
The agency said it provides education on the process and recommended action steps based on their individual needs. “In addition, for consumers who need help paying utilities, buying low-cost groceries, or meeting other essential needs, CredAbility counselors can help consumers locate these resources through referrals to other human service agencies,” said Jones.
Homeowners can call CredAbility 24 hours a day, seven days a week to schedule an appointment with a housing counselor.
Update: The article has been updated to reflect that other counseling agencies are also providing free HECM T&I Default Counseling.