What is a HUD-approved Housing Counselor, and How Can They Help Me?
Does housing counseling work? This article summarizes research on four types of counseling and shows why it can improve outcomes for homebuyers, owners, and renters. Literature suggests that postpurchase foreclosure mitigation counseling reduces the likelihood that buyers will default on a modified loan, increases chances of receiving a loan modification, and increases the likelihood of getting a mortgage remedy. Homebuyers who receive early and longer foreclosure mitigation counseling are more likely to experience improved outcomes than their counterparts. Pre- and postpurchase nondefault housing counseling can connect homeowners with more affordable mortgage products, discourage borrowers from choosing high-risk loans, and are associated with sustainable homeownership. Financial literacy education may be associated with fiscally responsible housing-related behavior and could play a role in low-income households’ upward mobility. Similarly, mobility counseling is associated with achieving mobility goals and boosting counseling intensity for assisted households, which some literature finds is associated with desegregation, deconcentrated poverty, and better outcomes for families.
