Neighborhood Housing Services of New Haven

Navigation

---

Preventing Foreclosure

Neighborhood Housing Services of New Haven has been providing pre-foreclosure and loss mitigation counseling since 2001.  When inquiries are made to HUD or to the State Banking Commissioner by individuals and families who are in need of delinquency intervention or pre-foreclosure counseling, we are one of the local referral agencies.  Our organization has a strong track record of providing these counseling services, and our interventions are often quite successful.

In 2007, NHS of New Haven received a grant from NeighborWorks® America to establish a “rescue fund” for homeowners who were about to lose their homes through foreclosure.  The funds are being used to bring borrowers’ mortgages current and, under certain circumstances, provide these homeowners with a monthly stipend that will assist them with their mortgage payments for a year.  The stipends represent the difference between payments on existing sub-prime mortgages and hypothetical payments on a prime mortgage.  It is expected that some existing lenders will modify their customers’ mortgages, offering loans with a more attractive interest rate.  In other situations, it is hoped that the borrowers will be able to refinance their mortgages after a year of perfect credit, thanks to the financial assistance provided by the stipends.  Extensive individual credit counseling is required of participants in this program.

---