Real estate website Zillow yesterday released results from its Mortgage Marketplace Survey, which found that one-third of homebuyers do not fully understand the basic terms of a mortgage, like down payments, lender rules, and mortgage rates. According to the survey, around 25 percent of homebuyers incorrectly believe that they are required to close their loan with the lender that pre-approved them.  In reality, prospective homebuyers should shop around for a loan that fits their unique financial needs rather than always go with the first bank that pre-approved them.

The survey also reported that one in five – or roughly 14 million homeowners –believe that underwater borrowers are unable to refinance their home loans. This is simply not true – to date, a significant portion of the 2.3 million homeowners who refinanced their mortgages via the Home Affordable Refinance Program (HARP) were underwater. Information about HARP, which has been extended through December 2015, is available by speaking with an HPF counselor at 888-995-HOPE (4673).

In addition to the evidence provided in the Zillow survey, last week’s HPF blog post discussed a recent academic study published by the Yale Law Journal, which found that, when presented with mortgage documents, homebuyers’ eyes focus more closely on language that is easy to comprehend rather than on the more complicated information. This leaves homebuyers’ susceptible to agree to terms they don’t understand, which could potentially harm them in the long run.

As with any other important financial decision, HPF urges homeowners to do their homework before taking out a mortgage. Taking the time to fully understand the terms of your mortgage and what the details of your loan entail is one of the first steps to take on the path to sustainable homeownership.

Over the past few days, we’ve received several comments on our blog from readers asking about the Independent Foreclosure Review (IFR) agreement and, specifically, the recent mailing of postcards to those who are eligible for compensation. First and foremost, we suggest that all those with questions visit the OCC’s website and read its list of “Independent Foreclosure Review Settlement Frequently Asked Questions,” which provides detailed answers to many of the questions that were posted on our blog. The FAQ also includes a breakdown of the servicers that are participating in the IFR agreement and those that are continuing with the review process.

Many of the questions we received were about the timing of the expected payments stemming from the IFR agreement with 13 major servicers. As we’ve previously posted, the over four million families who are expected to receive settlement checks from the IFR agreement were sent postcards over the last two weeks; these postcards provided further details on the anticipated payments. We urge those who believe they qualify for remediation via the settlement to check their mailboxes and open all mail that may pertain to the settlement. Additionally, it’s important to make sure that the program administrators have your current contact information, which you can verify by calling the payment administrator, Rust Consulting, at 888-952-9105.

Those who have received an IFR agreement check may have noticed that HPF’s Hotline number, 888-995-HOPE, is also listed in the accompanying letter. Homeowners who are still struggling financially or who are not sure how to best use their settlement payments to handle other debt issues are invited to call HPF to speak with a financial counselor. For more information on HPF counseling, read our previous blog post on the subject by clicking here.

Mr. Segal’s February 23 column particularly resonated with me.  In January, he was contacted by a robocaller offering an opportunity to lower his credit card interest rates.  Mr. Segal was immediately suspicious of the offer and decided to investigate the company.  It turns out that the company is run by a Florida couple who, according to Mr. Segal, control other outfits that were sued by the attorney general of Arkansas for violating various laws, including the Telemarketing Consumer Fraud and Abuse Prevention Act.

Mr. Segal is understandably outraged that the company continues to find new ways to operate, but he shouldn’t be.  Stamping out individuals bent on preying on unsuspecting consumers is akin to playing Whac-A-Mole – you stamp them down and they often instantly appear elsewhere.

HPF’s HOPE Hotline has received more than 30,000 reports of alleged mortgage scams in the past three years.  Many of the scamsters are repeat offenders – they get charged and then reemerge doing business under a different name.  They know how to circumvent the legal system and are quite sophisticated marketers.  Indeed, when Mr. Segal asked the robocaller where he was located, the person knew to terminate the call.

So take a bow, Mr. Segal, for doing your part to protect consumers in advance of National Consumer Protection Week.  And if you want to help stamp out the rapidly growing legion of mortgage scamsters, tell your readers to call the HPF HOPE Hotline at 888-995-HOPE (4673) to report suspected mortgage fraud. Reported scams are put in a database that is accessed by various law enforcement agencies.  And let your readers know that, if they are in need of FREE loan modification counseling, they can get it simply by calling the HPF HOPE Hotline.

Anyone who demands upfront fees for loan modification counseling is not worth listening to. Especially if the person making the offer is a robocaller.

As a partner of the Loan Modification Scam Prevention Network – a national anti-scam effort comprised of multiple organizations that runs the Loan Modification Scam Alert Campaign – HPF is supporting NCPW by educating homeowners on loan modification scams and directing them to free, legitimate mortgage resources, including our HOPE Hotline.

HPF reminds consumers that one of the leading signs of a loan modification scam is when an individual or organization requires an upfront fee for a loan modification service; doing so is illegal, which is why consumers can call our professionally trained counselors to receive loan modification counseling free of charge.

HPF also encourages consumers to be wary of web-based loan modification services that “guarantee” modifications, since only lenders can guarantee a mortgage solution.

If you or someone you know has been the victim of a scam, call 888-995-HOPE (4673) to speak with an HPF counselor for free. You can also visit our scam warning signs page to learn more about how to avoid being scammed.

Click here to read the news release about the Loan Modification Scam Prevention Network’s support of National Consumer Protection Week.

These statistics are contrary to the many indications that the housing market is in recovery: CoreLogic reported that housing prices are up; RealtyTrac says foreclosures are down; and the US Census Bureau announced that homes are once again being built. These improvements, all reported by extremely credible sources, are very good news for homeowners, especially those who are underwater on their mortgages or whose home values have depreciated because of an abundance of distressed properties in their neighborhoods.

The devil, however, may lie in the details. RealtyTrac’s data reports that, while down on a national average, foreclosure activity has increased in 57% of the nation’s metropolitan areas.  In Tampa, Miami, Baltimore, Chicago, and New York, the housing crisis is far from over. Additionally, CoreLogic’s foreclosure report noted that the 56,000 foreclosures completed in December, while down year-over-year, was still nearly triple the pre-crisis foreclosure level.

And here’s another sobering statistic: as previously reported, there’s been a dramatic increase in calls from homeowners who are current on their mortgages but are in danger of default. HPF counselors continue to remain busy helping homeowners build the budgets and find the solutions that will help them avoid foreclosure.

If you or someone you know is having trouble making mortgage payments, counselors are available to assess your financial situation. Call 888-995-HOPE (4673) to find out more.

Q: HPF uses the MortgageKeeper service to direct the distressed homeowners who call our HPF HOPE Hotline at 888-995-HOPE (4673) to local community services that can help consumers get back on track with their finances. Can you explain how you came up with the idea for MortgageKeeper and how it evolved into the business it is today?

A: I worked in community development for many years.  One of my frequent collaborators was Dr. J. Michael Collins, a professor at the University of Wisconsin-Madison, who had been researching consumer behavior for the housing and mortgage industry.  We knew from our experience that more should be done to connect homeowners in need with local services that could assist. Too often, people did not know where to go for help and ended up in the hands of unscrupulous actors offering to “help.” Servicers didn’t have the bandwidth to know the local markets for each of their delinquent homeowners.  MortgageKeeper (MK) was the logical solution to both problems, and in 2005 we put it together.

Q: What are the services that homeowners are most often referred to?

A: Currently our top three service categories are food assistance (which tells us that people are facing some big financial challenges), utility payment assistance, and housing counseling, which is the referral most used by HPF.  These have stayed pretty consistent over the past year.

Q: What is the largest trend you’ve identified in terms of how the MortgageKeeper system is being used?

A: We’ve seen an increase in demand for rental housing options that wasn’t really expected. MK was created to help more homeowners stay in their homes, but it was gratifying to learn our local resources can help anyone, regardless of their housing status.  Since some homeowners have to transition from ownership to affordable rental housing, our services are still very much needed.

Q: You recently reported that 900,000 homeowners were referred to local assistance via MortgageKeeper in 2012, which was a 34% increase from the year before. Can you tell us what you attribute that jump to?

A:  More organizations are turning to MK to help them connect their customers to local help.  In addition, times continue to be tough and more and more people need assistance as their income remains low and they look for suitable employment.  Last year also brought a new release of our desktop application, which made using MK easier for our clients.

Q: In November, military resources were added to the MortgageKeeper database to help struggling veterans. What are other resource categories that you have recently added or plan to add in the future?

A: In partnership with HPF, a recent addition was state-by-state foreclosure law summaries for counselors.  We’ve also added rental housing because unfortunately not everyone is able to stay in their home, and we want to make sure that their transition from a house to a rental goes as smoothly as possible.  Next up we will be adding a disaster relief category.  Our clients will be able to easily refer a homeowner to the appropriate agency or service provider.  With that framework in place, we will be able to quickly upload assistance resources that spring up to serve the need when disaster strikes.

Q: In your experience, what is the most surprising thing that you’ve encountered in terms of how the referral system is used?

A:  It has to be the consistent usage of our products.  Month-to-month, year over year, our subscribers are logging in.  Every day they access the tools and refer consumers to support and options they previously did not know existed.  Even after many years, most subscribers today see their usage hitting all-time highs.  And while this is surprising, it’s also tremendously gratifying to know that people are getting connected with organizations that can help them.  It’s why I love my job.

Rochelle Nawrocki Gorey, President/Co-Founder of MortgageKeeper Referral Services, has more than 20 years experience in housing policy research—research made practical by applying it to issues like homeownership, mortgage default and foreclosure, and financial literacy. She has co-authored various publications and training materials related to foreclosure intervention strategies and loss mitigation best practices. Rochelle is also sought out as a speaker, most recently at the Annual Meeting of the American Bar Association.

Regardless of who we are talking to, however, one of our core messages remains the same and that is, simply, that housing counseling produces results; after undergoing counseling, more homeowners are able to save their homes, avoid foreclosure, understand their finances, and regain financial stability.

In the last year or two, there has been a great deal of compelling research from HUD, Harvard University, The Urban Institute, and other reputable sources that easily make that case. HPF probably has a filing cabinet’s worth of data, stats, and research at this point that indicates the myriad ways in which housing counseling is a good use of time, effort, and resources for homeowners, their lenders, housing sector investors, the government, local communities, and the economy.

That said, this story by Lew Sichelman, a syndicated columnist who has been covering housing and real estate for decades, does a superb job of hitting some of the highlights. If you’re wondering whether housing counseling can help you with your mortgage challenges, I strongly encourage you to read Mr. Sichelman’s article and then to call our HUD-approved counselors at 888-995-HOPE (4673).  Housing counseling can help.  There’s no reason to try to tackle your financial crisis alone.  Let our counselors work with you to find the best possible solution for you and your situation.

As always, we’d love to hear your thoughts here, on our Facebook page or via Twitter.

We understand that your house is more than just an investment. It’s where memories are made, children are raised, future life plans dreamed up… it is so, so much more than just a mortgage, it’s a home. So, when distressed homeowners reach out to HPF’s housing counselors for assistance on how to possibly prevent foreclosure, we look at every conceivable option available to them to try to help them find a sustainable solution to stay in their home. And we take great pride in our success rate.  Seventy percent of those who were counseled by HPF reported that they were still in their homes one year later, having successfully avoided foreclosure.

Regrettably, however, holding onto the home may not be feasible for every caller — but that doesn’t necessarily mean foreclosure is inevitable.  There are alternative options, including:

Short Sale:  Under this arrangement, the homeowner and lender agree to sell the home for less than the balance due on the loan.

Deed in Lieu:  This option gives the property rights of the home back to the lender; it has a less negative effect on your credit score and may include borrower relocation assistance.

To learn more about these alternatives to foreclosure, please call our Homeowner’s HOPE Hotline at 888-995-HOPE (4673) today — our counselors are available every hour of every day to answer your questions and explain your options. When staying in your home is no longer an option, they have the requisite experience, expertise, and compassion to help you figure out the best path to exit the home and put this difficult time behind you. They can also help you begin the process of getting back on your financial feet.

In our experience, rarely do mortgage delinquencies occur in a financial vacuum. A study published by TransUnion last year, for example, found that more than 60% of people who were delinquent on their mortgage were also behind on their auto loans and credit cards. It’s an all-too-common scenario.

So, while every one of the counselors are HUD-approved, housing counseling specialists, the vast majority of them are equally prepared to provide more holistic financial counseling to homeowners who need guidance with getting all their finances back on track.  They will help the caller look beyond just the immediate issue of addressing the foreclosure worries, and help them create monthly budgets and realistic “pay back” schedules to clear debts, understand better where and how they are spending their money, and ultimately restore their financial footing.

Although we are known for our housing counseling expertise, having this “big picture” financial counseling knowledge and offering it to interested homeowners through our counselors certainly makes sense.  Logic suggests that someone looking to prevent foreclosure (or, after having received a loan modification, are looking to stay current) has a far greater chance of doing so by getting all his or her finances in order.

The more complete a picture our counselors have of your financial situation, the more likely it is that we can help you manage it — all of it.  And while the thought of sharing all the details of your financial life to an outsider over the phone may seem a bit uncomfortable at first, we really are just here to help. Our counselors don’t judge people or lecture them for how they’ve been handling their finances. Quite the contrary — we understand that personal finances, like life, can get messy sometimes through no fault of your own. Holistic counseling is an ideal way to begin to mop it up when it does.

If holistic counseling sounds like something that could benefit you, just call our Homeowner’s HOPE Hotline at 888-995-HOPE today and let your counselor know.

We take great pride that HPF counselor Betsy Carvajal was recently the recipient of the Excellence in Counseling Award from NeighborWorks America as part of its first ever National Foreclosure Mitigation Counseling (NFMC) Counselor Awards. As a housing counselor at Atlanta-based CredAbility, an HPF partner agency that helps run the national HOPE Hotline, Ms. Carvajal was recognized for empathetic listening, which helps homeowners feel more comfortable about sharing their tales of financial hardship. Ms. Carvajal was also cited for her effectiveness in running training programs for other counselors and her innovative solutions to better tracking the ever-changing list of foreclosure prevention programs. For these efforts and more, the entire HPF team would like to thank Ms. Carvajal for her tireless dedication in guiding homeowners to sustainable housing solutions.

And stay tuned for HPF’s own inaugural counselor of the year awards, which will be announced in the coming months.