NEW: State to Receive Additional $634,000 in Foreclosure Prevention Funds
Thursday, March 22, 2012
U.S. Senator Jack Reed (D-RI) today announced that Rhode Island will receive an additional $634,342 in federal funding to continue providing housing counseling to struggling Rhode Islanders through NeighborWorks America’s National Foreclosure Mitigation Counseling (NFMC) program. This funding comes in addition to $564,235 in NeighborWorks grants that Rhode Island received in February, bringing the state’s total this year to nearly $1.2 million.
The federal NeighborWorks America program is awarding $545,782 to Rhode Island Housing, $63,540 to West Elmwood Housing Development Corporation, and $25,020 to Community Works Rhode Island (CWRI) to help stabilize neighborhoods hit hard by the foreclosure and economic crisis; provide counseling for homeowners facing foreclosure; train foreclosure counselors; and assist with expenses related to implementing the NFMC program to help Rhode Islanders navigating the mortgage-modification system.
“I commend these organizations for helping homeowners and communities throughout Rhode Island. The loan modification process can be difficult to navigate and these additional funds will help more Rhode Islanders get the information, assistance, and guidance they need,” said Reed.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“Our HelpCenter, which is staffed by experienced HUD approved and HHFRI certified counselors, is a safe place where Rhode Islanders at risk of losing their home can go for counseling," said Richard Godfrey, Executive Director of Rhode Island Housing. “The services at the HelpCenter are free and we encourage Rhode Islanders to call the HelpCenter (401-457-1130) at the first sign of having difficulty making a mortgage payment. The sooner people come to us for help, the more options they will have.”
According to a new report issued by the Urban Institute that evaluated NFMC funding, homeowners who received NFMC counseling, compared to homeowners who didn’t work with an NFMC counselors, lowered their monthly mortgage payment by $176, on average; were nearly twice as likely to obtain a mortgage modification; and, were at least 67 percent more likely to remain current on their mortgage nine months after receiving a loan modification.
