Mortgage Foreclosure Prevention Counseling, Wright County Community Action

Wright County Community Action (WCCA) offers Mortgage Foreclosure Prevention Counseling to homeowners facing a foreclosure due to a temporary financial crisis. WCCA helps homeowners to maintain stable housing and establish financial stability, while learning strategies to avoid future financial struggles. The Mortgage Foreclosure Prevention Counseling Program serves households by successfully negotiating work-out agreements, debt repayment plans, or loan modification plans with mortgage lenders on behalf of participants.

The program works with homeowners to determine and address problems that are occurring or are expected to occur because of home mortgage default; it negotiates with mortgage companies, conducts family budgeting and loan repayment planning, facilitates credit reviews, and provides information/referral to other needed services.

One of WCCA’s many successes was Mary (name changed). In January of this year Mary was laid off from her job after working for the company for many years. Mary received severance pay until the end of March. She applied for unemployment and began collecting unemployment in April. She was diligently seeking employment, had applied for numerous positions with no relief in sight. Mary was concerned she would not be able to make her monthly mortgage payments, or be able to make up the delinquent mortgage payments when she found employment. The fear of losing her home to foreclosure and becoming homeless were making her very nervous. With the help of the Mortgage Foreclosure Counselor, Mary received a forbearance agreement from her mortgage company in May which reduced her June, July and August payments by $913 per month. The middle of August Mary was notified that she was approved for an extended loan modification due to her continued hardship. Her new loan modification will run from October 2015 through May 2016 with her new payment of just $25.00 per month.