Freddie Mac and a network of non-profit organizations announced a nationwide phone campaign to convince discouraged delinquent borrowers to pursue mortgage workouts that can save their homes and steer clear of foreclosure.
In addition, they will open walk-in help centers offering “holistic” credit counseling in Chicago, Washington, DC, Phoenix, and California. Holistic counseling addresses a wide range of borrower debt and income issues, not just delinquent mortgages. This will allow people to have access to confidential one-on one support from trusted independent, non-profit organizations.
Freddie Mac is also launching a separate Borrower Help Network offering similar counseling over the phone to targeted Freddie Mac borrowers across the nation.
Both efforts rely on non-profit organizations with strong reputations to work with Freddie Mac borrowers who may be eligible for a modification but never called their lender or became frustrated or uncertain of the process and gave up trying.
“We know that fear and frustration are keeping thousands of borrowers from getting the help they’re eligible to receive,” says Ed Haldeman, Chief Executive Officer, Freddie Mac. “So we’re going to address the problem head-on to make the difference in keeping families in their homes and out of foreclosure.”
Groups participating in the Borrower Help Center and Borrower Help Network include the National Urban League, National Council of La Raza (NCLR), HomeFree-USA, local Neighborhood Housing Services in Chicago, Phoenix, and Ontario, California, and other local community organizations.
“NCLR’s partnership with Freddie Mac on this program means that distressed minority homeowners can access effective, personalized housing counseling from trusted community organizations. This effort will strengthen our ability to replicate best practices and succeed in helping more Latino families stay in their homes,” said Janet Murguia, President and CEO of NCLR, the largest national Hispanic civil rights and advocacy organization in the United States.
In 2009 Freddie Mac helped nearly 250,000 borrowers avoid foreclosure through loan modifications, forbearance, repayment plans and other workouts. Although the company finances almost 23 percent of America’s residential mortgages, it accounts for just nine percent of seriously delinquent mortgages.
Neighborhood Borrower Help Centers Open in Four Key Markets
The free Borrower Help Centers in Chicago, Phoenix, Washington, DC and Riverside/San Bernardino Counties in California have already started contacting delinquent borrowers identified by Freddie Mac for appointments. Borrowers who know Freddie Mac owns their mortgage can also schedule free appointments by contacting the Borrower Help Center in their community. (See contact information below.)
Borrower Help Centers in Chicago are being staffed by Neighborhood Housing Services of Chicago and the Latin United Community Housing Association (LUCHA), and in Phoenix by Neighborhood Housing Services of Phoenix and Chicanos Por La Causa. Neighborhood Partnership Housing Services in Ontario, CA and Home Free USA in Hyattsville, MD, a Washington, DC suburb have also opened Borrower Help Centers.
In the parallel effort to reach borrowers located outside of the initial target areas, the Borrower Help Network, consisting of eight national and local non-profit organizations, has launched its national phone campaign to make contact with delinquent Freddie Mac borrowers who have stopped responding to their lenders. Counselors will provide free holistic counseling, and help borrowers explore and understand their mortgage modification options.
For more information, visit freddiemac.com/avoidforeclosure
BORROWER HELP CENTER LOCATIONS
Latin United Community Housing Association (LUCHA)
1152 N Christiana Avenue
Chicago, IL 60651
Chicago Neighborhood Housing Services
1279 N. Milwaukee Ave., 5th Floor
Chicago, IL 60642
California – Inland Empire
Neighborhood Partnership Housing Services (NPHS)
320 W. G Street Suite 103
Ontario, CA 91762
1405 East McDowell Road, Suite 100
Phoenix, AZ 85006
Chicanos por la Causa
1112 East Washington Suite 102
Phoenix, AZ 85034-4043
3401A East West Highway
Hyattsville, MD 20782