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NFCC PRESS RELEASE
Monday, November 5, 2007
Consumers are Losing Sleep, Maybe Their Homes, Too
NFCC’s Mortgage Reality CheckSM October Data Reveals Homeowners in Critical Situations
Silver Spring, MD - The National Foundation for Credit Counseling’s (NFCC) Mortgage Reality CheckSM indicates that homeowners in this country may be at a significant risk of jeopardizing their homes and financial well-being.
The Mortgage Reality CheckSM is a self-diagnostic test designed to help homeowners assess their understanding of their financial situation as it relates to their home and mortgage products and suggests next steps if necessary.
After completing the test, consumers are given an assessment in one of three colors:
Red: Immediate advice or counseling assistance is recommended.
Yellow: Suggestion to review the responsibilities of homeownership.
Green: Not at an immediate risk.
By no means a scientific study, the data compiled by the NFCC is solely indicative of the answers provided by the 1,089 visitors to www.HousingHelpNow.org who have completed the Mortgage Reality CheckSM test between October 1 and October 31, 2007. Overall, 67% were red, 18% yellow, and 15% green.
Other data shows that:
55% are having trouble sleeping at night because they are worried about their financial situation;
46% have skipped paying some bills in order to have enough money to pay others;
26% have received letters and/or phone calls from creditors, mortgage brokers, or a foreclosing lender;
28% owe more on their mortgage than their house is worth;
40% believe that refinancing their mortgage will solve their problems.
The findings that 40% believe that refinancing will help eliminate their financial problems and 28% owe more than their house is worth, when placed side by side, conjure a very troubling picture for the American consumer. It further indicates, in all likelihood, that the current housing and mortgage crisis is very likely to get much worse before it gets better.
The www.HousingHelpNow.org Web site is just one of the NFCC’s enhanced counseling and education effort in communities across the country targeted at assisting homeowners who may be at risk of losing their homes. The NFCC network of nonprofit, community-based agencies has nearly 1,000 offices and more than 1,200 certified housing counselors who are ready to assist consumers avoid foreclosure now.
Consumers can receive immediate assistance by calling (866) 557-2227, an NFCC toll-free hotline that will connect them with an NFCC-certified housing counselor.
Individuals in need can also receive assistance by logging onto: www.HousingHelpNow.org.
A Spanish version of www.HousingHelpNow.org and of the Mortgage Reality CheckSM is available at www.nopierdastuhogar.org.
For more than 50 years the NFCC has provided consumers with sound financial advice as the recognized leader in financial education and counseling services, assisting more than two million consumers a year. Housing counseling is a core service of nearly all NFCC member agencies and most are HUD-approved housing counseling services.
The National Foundation for Credit Counseling (NFCC), founded in 1951, is the nation’s largest and longest serving national nonprofit credit counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior and build capacity for its members to deliver the highest quality financial education and counseling services. NFCC members annually help two million consumers through nearly 1,000 community-based offices nationwide.
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