As homeowners struggle to recover from the housing recession that began in 2008, research shows that housing counseling can significantly improve homeowners’ chances of securing a loan and maintaining home ownership. More than 7 million households lost their homes during the recession, and the resulting foreclosures or short sales damaged owners’ credit and made getting a new mortgage extremely difficult. Divorce, student loans, and unemployment also have made the housing market inaccessible to many, and a number of people under the age of 35 have put off buying their first home.
An analysis in the MReport, a publication of the Five Star Institute, argues that housing counseling is the right solution to promoting recovery in the housing market. Lenders must adhere to stricter underwriting and regulatory requirements necessitating that some families undergo credit remediation before buying a house. Housing counseling can help at-risk buyers modify a loan and acquire a mortgage, and it can encourage regular repayment as well. Mortgage companies and nonprofit credit counseling organizations should work together to help people who previously have been unable to buy a house, the article states.
The managing attorney for Rosicki, Rosicki & Associates, P.C.’s Closing Department and one of the firm’s senior associates, Janet Ward is a member of the Legal League 100’s education committee. The Five Star Institute, which publishes MReport, also oversees Legal League 100.