DEFAULTS/FORECLOSURES UP; CCCS-SF STEPS IN
March 26, 2007 – Consumer Credit Counseling Service of San Francisco (CCCS-SF) is stepping up efforts to help homeowners keep their property out of foreclosure. The non-profit organization reports a dramatic increase in calls from nervous mortgage holders over the last few months. Payments for many adjustable-rate mortgages (ARMs) and subprime loans have gone up by 25, even 50 percent, leaving millions of borrowers in serious financial trouble. CCCS-SF is urging homeowners who are having difficulty making payments to come to them for information and guidance on how to best approach the problem.
ARMs and subprime mortgages have enabled homebuyers who stretched their finances or had less than perfect credit to purchase property, but the recent adjustment has left many of them unable to afford the higher payment. A good number of homeowners have very little “wriggle room” with their budgets, and not much (if any) savings. Because of this, the slightest fluctuation in expenses and income causes major cash-flow damage. Early intervention – contacting the lender before missing a payment is best, but there are also options for borrowers who are currently behind.
Homeowners are encouraged to recognize the importance of considering at all their alternatives. If the monthly payments are just too high for comfort they may be able to sell the property and downsize, either by buying a less expensive home or choosing to rent instead.
What CCCS-SF can do
CCCS-SF is a HUD certified housing counseling agency and an accredited nonprofit financial counseling and personal finance resource center. In addition to housing education services, CCCS-SF offers money management assistance and a debt repayment program. For more information contact Erica Sandberg at (415) 788-0288 ext. 224, or log onto www.cccssf.org.
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