New Yorkers have had more than their share of hardships in the recent years. With the economic down-turn we’re seeing more and more New Yorkers losing their homes to foreclosures. That’s why the government has recently granted money to organizations that help educate New Yorkers before they buy homes and when they are faced with foreclosures and bankruptcies. Housing Counseling for Homeowners There are many resources available to prospective homeowners who are in the market to purchase a home. The US Department of Housing and Urban Development (HUD) has approved many nonprofit organizations to provide counseling and legal services for new and prospective homeowners. One of the resources these organization provide is housing counseling in New York. Counselors trained in housing counseling can help prospective homeowners by walking them through the process of owning a home. They can walk prospective homeowners through setting a budget, which is one of the most important steps in home buying. Setting a realistic budget prevents new homeowners from facing mortgages they can't pay down the line and foreclosures. Counselors can also advise new home buyers on how to find a good mortgage brokers. Keep in mind that these counselors and the organizations that they work for do not actually loan money for the homes. While most home buyers interact very well with their mortgage brokers, there are some who have had bad experiences with predatory loans. Counselors can inform prospective buyers about what is legal and warn them about illegal actions such as documenting a property as a business or rental property when the buyer has stated that the property is intended to be a primary residence. Bankruptcy Education for Those Considering Bankruptcy These HUD-approved nonprofit organizations also offers education and advice for people who are facing foreclosures and bankruptcy. While many people think that bankruptcy is a chance to wipe their financial slate clean, there are many serious consequences to consider before filing for bankruptcy. This is why it is required to receive bankruptcy education in New York before filing for bankruptcy. Meeting with a trained counselor can help a homeowner faced with foreclosure and considering bankruptcy to decide whether or not filing for bankruptcy is the best option. Very often, the counselor will help the individual evaluate their current budget and possibly create a new, more appropriate budget. The counselors may also be able to contact the creditors directly and make payment arrangements fitting the individual's budget. A few examples of arrangements are forbearance and loan modifications. With forbearance, you are given more time to make your past due payments. While the loan modifications may either extend the length of your loan or lower your interest rate. These counselors are trained and have experience with negotiating with the lenders. For those who are good candidates to file for bankruptcy, these organizations often offer legal services or may be able to refer individuals to experienced lawyers.
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