More than 1.3 million homeowners have received foreclosure prevention counseling by local nonprofits and state housing finance agencies participating in the National Foreclosure Mitigation Counseling (NFMC) program administered by NeighborWorks America since the program began in March 2008, according to a report from NeighborWorks America.
The report found that 51% of homeowners seeking NFMC help are women, and 20% of the people being served by NFMC counselors have mortgage rates that exceed 8%. The national level for the 30-year mortgage has averaged less than 5% since April 2010.
Furthermore, the report found that 38% of NFMC program clients spend half or more of their income on their monthly home loan payments, while 23% of NFMC program clients spend more than $2,000 on monthly mortgage payments.
‘The NFMC program is a remarkable success, helping more than 1.3 million homeowners,’ says NeighborWorks America CEO Eileen Fitzgerald. ‘The program has had a real effect on families. The average homeowner who receives NFMC program help saves $2,100 each year after getting her mortgage modified, compared to a homeowner who doesn't work with an NFMC counselor and obtains a mortgage modification. In all, it's estimated that homeowners save more than $370 million annually because of the NFMC program.’