1. What a Housing Counselor Does
A housing counselor is a trained professional who helps homeowners manage mortgage issues, prevent foreclosure, and plan long-term financial stability.
They can:
- Review your loan documents and income to assess options
- Explain legal timelines and lender obligations
- Help you apply for modification, forbearance, or reinstatement programs
- Communicate directly with your servicer to clarify next steps
Under the Dodd-Frank Act (12 U.S.C. § 1701x(e)), counselors approved by the U.S. Department of Housing and Urban Development (HUD) must meet strict training and ethics standards.
2. Why Work With a Counselor
Unlike “foreclosure consultants” who charge illegal upfront fees, HUD-approved counselors:
- Provide services free or at low cost
- Are regulated by federal and state oversight agencies
- Cannot take title to your property or collect payments on your loan
- Offer objective guidance, not sales pitches
California’s Homeowner Bill of Rights encourages servicers to provide borrowers with nonprofit counseling resources before recording a Notice of Default (Cal. Civ. Code § 2923.55).
3. How to Find Legitimate Help
You can locate a certified counselor by visiting:
- HUD.gov/housingcounseling
- DFPI.ca.gov/consumers (California Department of Financial Protection & Innovation)
- NeighborWorks.org
When calling, have your loan number, mortgage statement, and hardship details ready. Appointments are typically by phone or video.
4. What to Expect in a Session
During your first meeting, your counselor will:
- Review your financial situation and spending plan.
- Explain available loss-mitigation programs.
- Help you complete lender forms and submit a package.
- Track the lender’s response and assist with appeals if denied.
They can also connect you with legal-aid partners for complex cases or suspected violations.
5. Protect Yourself from Fake “Helpers”
Beware of anyone who:
- Guarantees loan approval
- Requests money upfront
- Tells you to stop talking to your lender
- Asks you to sign over your deed
Always verify credentials through HUD or DFPI before sharing documents.
A legitimate housing counselor is your ally—knowledgeable, neutral, and focused solely on helping you keep your home or exit foreclosure safely.
Not sure what the next step should be?
We help homeowners and Realtors understand available options.
