Borrowers 30 days behind must be offered housing counseling
What the document says“A borrower with respect to a covered mortgage loan who is 30 days or more delinquent on payments for the covered mortgage loan shall be given an opportunity to participate in available housing counseling.”
The section adds a new subsection (j) to section 106 of the Housing and Urban Development Act of 1968 requiring that a borrower at least 30 days behind on a covered mortgage loan be offered available housing counseling. A covered mortgage loan is defined there as a loan on a home for one to four families that is insured by the Federal Housing Administration, guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992, or made, guaranteed, or insured by the Department of Veterans Affairs or the Department of Agriculture.
What the document actually says“A borrower with respect to a covered mortgage loan who is 30 days or more delinquent on payments for the covered mortgage loan shall be given an opportunity to participate in available housing counseling.”
Some people fall behind on a home loan. If they are 30 days late, they must be offered help. The help is housing counseling.
Foreclosure is when a lender takes a home for missed payments. Counseling can help a person avoid it. This makes the offer a rule, not a choice.
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