Americans who receive housing counseling in order to resolve foreclosure struggles were successful in 69% of cases including 56% of counselees who were able to become current on their mortgages, says a Department of Housing and Urban Development report released in May.
The study did not detail reverse mortgage borrowers specifically, but presented several findings about telephone counseling versus in-person counseling. Phone counseling clients tended to have higher incomes, higher savings, were less percentage minority and were more geographically dispersed, HUD reports. They also received “stronger housing outcomes” than in-person clients seeking foreclosure assistance.
“This does not constitute proof that telephone counseling is as effective as in-person counseling for any individual client,” the report states. “Nevertheless, it suggests that the expansion of telephone counseling during the foreclosure crisis provided an important alternative resource for individuals and communities—particularly those living in areas without an in-person counseling provider.”
Additionally, phone clients were older and likely to be married, the survey found.
HUD says it uses the information collected in its surveys to improve the counseling process overall.
View the report.
Written by Elizabeth Ecker