Quick tips to get you on the path to homeownership

Owning a home is a great way to build an investment and see return on all the “rent” you’re already paying month to month. Right now, interest rates are STILL at an all-time low. If you’re mortgage ready, take advantage of this and get yourself a good deal!

1.   Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28 percent of their income on housing costs. If you pay more than 30 percent of your gross monthly income to put a roof over your head, you are living ABOVE your means. The term “HOUSE POOR” will have real meaning.

Keep in mind: Owning a home is not like renting – you are the landlord. When it breaks, you fix it. EXPECT unexpected costs. When new appliances, roof repairs and plumbing problems pop up; these costs can drain your bank account.

2.   Go to a bank or lender to get pre-qualified. This initial step allows you to assess any goals or needs you may have regarding your mortgage with your lender. From here, you can learn about your various mortgage options and the type that might be best suited to your situation.

Keep in mind: Being pre-qualified is NOT the same as pre-approved. It is strongly advised that those seeking homeownership do not house hunt until they are pre-approved, which is much more extensive.

3.   Find a realtor once you are pre-approved and set on what you can afford. Meet with a few agents, to find one you feel confident with. An agent who is a member of the National Association of Realtors is a good sign as they adhere to a strict ethics code.

Keep in mind:  A good real estate agent can help guard against any pitfalls you may encounter during the process, so choose wisely.

4.   Know and understand the various mortgage products available to you. Factor in closing costs you can afford. This will help you choose the best mortgage program for you. As a first time homebuyer, options may be available to you, such as low interest programs and down payment assistance.

Keep in mind: If you plan to move within five to 10 years, an adjustable-rate mortgage (AMR) could be beneficial. However, if plans change and you stay in your home for longer, you may be stuck with payments you can’t afford.

5.   Try to hold off on big purchases or any decisions that could affect your credit once you’ve signed a contract and a closing date is set. Typically, lenders pull credit right before closing to make sure nothing has changed with your financial situation.

Keep in mind: If you feel over-stressed, lost, or uncomfortable with the homebuying process or any part of it, don’t be afraid to ask for help. The Homeownership Resource Center, a division of Family Services, Inc., not only offers help and guidance, but piece of mind.

To learn more about the workshops and individual appointments we provide with our licensed homebuyer coaches, contact us at 843.735.7862 or info@fsisc.org.

Written by: Revena Dawson, Home Purchase/Credit Advisor, & Sarah Cornwall, Marketing Rescources, at Family Services, Inc.

FATHER KNOWS BEST – OR DOES HE?

Survey Reveals Definite Lack of Financial Skills

Washington, DC – As Father’s Day approaches, many dads begin reflecting on the life skills they’re teaching their children. Nice manners, discipline and a good work ethic top many lists. Not to be overlooked, however, are financial skills, because regardless of whether they are taught formally or by example, parents pass along their financial habits to their children.

This concept is confirmed by the National Foundation for Credit Counseling’s (NFCC) 2011 Financial Literacy Survey in which the majority of respondents, 42 percent, indicated that they learned the most about personal finance from their parents. At first glance, this appears to be a good thing, as the home should be the ideal place for children to learn skills and habits.

However, the same survey also revealed that 41 percent of adults gave themselves a grade of C, D or F regarding their knowledge of personal finance. This is a disturbing decline in financial literacy, as one short year ago “only” 34 percent of Americans gave themselves a low grade. Further, five percent of U.S. adults, or about 11.5 million people, indicated that the failing grade of F best represented them, marking a sharp increase from previous years when less than three percent of adults self-identified at this level.

Taken together, these results suggest that many parents are ill-prepared to teach their children sound financial principles.

“The good news is that Americans recognize and are willing to admit their financial deficiencies,” said Gail Cunningham, spokesperson for the NFCC. “Now it is up to them to do something about it, particularly if they have children who will invariably model their parent’s financial behavior.”

There are many resources available to consumers desiring to improve their level of proficiency in personal finance, including self-help books, the media, the Internet or financial professionals. Interestingly, the survey showed that while Caucasian and Hispanic adults are more likely to identify the home as the primary learning ground for personal finance, African-Americans are more than twice as likely as Caucasians to garner such information from self-help books, the media or friends.

Looking at gender, men were more than four times as likely as women to give themselves failing grades for their knowledge of personal finance, eight percent versus two percent, respectively.

“During these painful economic times, it can be argued that keen personal finance skills are more important than ever,” continued Cunningham. “The NFCC calls on parents to stop the cycle of financial illiteracy by improving their own level of financial expertise, thus enhancing the likelihood that their children will some day be able to give themselves a grade of A in this important life skills category.”

If you want to improve your level of personal financial skills, reach out to an NFCC Member Agency where you can meet with a counselor one-on-one, or participate in group workshops on a variety of financial topics. The services are free or low-cost and are open to the public. To be automatically connected to the NFCC Member Agency closest to you, dial (800) 388-2227, or go online to www.DebtAdvice.org. For assistance in Spanish, dial (800) 682-9832. OR, if you're in the Charleston Area contact Family Services, Inc at (843) 735-7802

The National Foundation for Credit Counseling (NFCC), founded in 1951, is the nation’s largest and longest serving national nonprofit credit counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior and build capacity for its Members to deliver the highest quality financial education and counseling services. NFCC Members annually help over three million consumers through close to 800 community-based offices nationwide.

Start when you are young… Credit Cents

Those first few years completely free from parental supervision and financial support bring some very exciting firsts. First apartment, first job, first budget . . . It can all be very overwhelming. With everything happening all at once, it can be hard to know what is best for your finances. Here are a few basics to keep in mind.

• Make a budget. If you've heard it once, you've heard it a thousand times, constructing a budget can be your greatest ally when it comes to managing your finances. Those first paychecks may inspire you to make rash spending decisions. Impulse purchases can throw you into debt, which is never a good starting point.
• Prioritize. While you're putting together your budget, it's important to prioritize your monthly expenses, and your debt. Bills–rent, utilities, etc–need to go first; those are costs that you cannot avoid. Next come any loans (student, car, etc.) or other debt repayment. For the sake of your credit score, it is crucial that you make your payments on time. And if you have credit card debt, make sure to pay more than the required minimum whenever possible, and always put any extra funds toward paying off the one with the highest interest rate. Consider paying yourself each month one of your necessary financial obligations each month; saving just $20 a month can make a huge difference.
• Ensure you're insured. Health, disability and life insurance are often offered through employers, so make sure you're covered for life's "in case" events. Recent health-reform legislation allows you to stay on your parents' health insurance until age 26. After that you're on your own. Make sure you fully understand and are signed up for the insurance policies most beneficial for you.
• Look down the road. It may sound ridiculous to be planning your life ten years from now, but having an idea of where you want to be can help you form a plan for your spending and saving today. Do you want to own a home? Get married? Have kids? Your credit score and savings have a tremendous impact on all of these milestones, and you don't want to be looking back thinking, "If I'd only had a financial plan . . ."

Need budgeting help? Already have more credit card debt than you can manage?

Contact our non-profit Consumer Credit Counseling or Homeownership Resource Center for FREE budgeting, credit card counseling, home ownership opportunities and foreclosure counseling. info@fsisc.org phone 800-232-6489

Family Services, Inc. is a non-profit organization with HUD certified and South Carolina licensed consumer credit counselors.

Consumers Should Use Caution When Considering Some Forms of Borrowing or Purchasing

Interest and Fees Can Easily Outweigh the Benefits
The National Foundation for Credit Counseling

Desperate times often call for desperate measures, but sometimes those tactics can leave you worse off than where you began. This can be the case with people struggling to find money for holiday purchases.

Three areas to avoid when looking for extra money this holiday season:

Payday Loans - On the surface, getting the cash you need may seem worth it at any cost. But it’s that cost that can become financially back-breaking. To obtain a payday loan, you write a post-dated check for the amount of the loan plus any fees the lender tacks on. You then receive the amount of money you initially needed to borrow, promising to pay back that amount plus the fees. The term of the typical payday loan is one to two weeks, at which point the lender cashes your post-dated check. Most payday lenders will charge a certain dollar amount per $100 borrowed. For example, they may charge $15 for every $100 you borrow. Thus, if you needed $300 for two weeks until your next paycheck came in; your post-dated check would be for $345. What’s $45 when you desperately need $300? Here’s the catch…that $45 represents an Annual Percentage Rate of 390 percent. You wouldn’t dream of taking out any other type of loan with triple-digit interest. And, if this isn’t bad enough, many consumers cannot repay the loan at term, and end up rolling it over, thus adding on more fees and interest.

Pawn Shops – People can do several things at pawn shops. They can borrow money by putting up something of value as collateral, they can sell their merchandise outright, or they can buy the merchandise that is for sale at the shop. There are bargains at pawn shops, but only for those buying the merchandise, not for the sellers. Typically, the person pawning the merchandise receives a sum of money (usually nowhere near the true value of the item) which he or she agrees to repay with interest. If the loan is repaid by the end of the term, the merchandise is returned to the owner. If the loan is not repaid, the consumer can renew the loan, or the merchandise is forfeited. What’s the problem? Again, it’s the interest and fees, with APRs typically in the triple-digit range once everything is added in. Further, some studies show that only 60 percent of pawners end up reclaiming their merchandise, thus they have essentially sold an item for cents on the dollar, something they wouldn’t otherwise do.

Rent-to-Own – Everyone wants nice things, and if the family is coming over for the holidays, you may be tempted to spruce up your home. A quick trip to the furniture or electronics store could confirm that a new living room set or flat panel TV is out of your price range. Then you notice an ad for similar items with affordable monthly payments. It seems too good to be true, and it is. The problem once again lies in the interest and fees. For instance, if you bought a $200 item and agreed to make weekly payments of $15 for 78 weeks (basically one and one-half years), you’d end up paying $1,170 for that $200 item at an APR of 388 percent. Adding insult to injury, it is likely that you could have purchased the same item at a traditional store for a fraction of the overall cost.

For help managing household debt and/or living within your budget, contact Family Services, Inc.’s Consumer Credit Counseling division, 843.735.7802.

SHOULD YOU BE SHOPPING THIS HOLIDAY SEASON?

Holiday Spending Quiz Helps Consumers Evaluate Their Financial Situation

One in every 10 Americans is currently unemployed. Foreclosure filings were reported on close to one million properties in the third quarter of 2009. Personal savings, if it exists at all, is a fraction of what it should be. Terms on credit cards are rapidly changing, putting some consumers over the financial edge. And the biggest shopping day of the year, Black Friday, has just passed.

“Considering the volatility of the economy, consumers would be well-served to take a hard look at their personal financial situation and evaluate how to best approach the holiday season,” said Michaele Pena, Director of Consumer Credit Counseling Services (CCCS), a division of Family Services, Inc. “Self-inflicted financial pain that could have negative consequences for years to come is a gift to no one.”

Family Services, Inc. suggests that consumers take the following Holiday Spending Quiz to assess their current financial stability before they begin shopping: (answer true or false)

• There are arguments in my home about money.
• I sometimes hide my purchases.
• I have thought about filing for bankruptcy.
• I struggle to make my mortgage payment.
• I sometimes pay my bills late.
• I have used more than 30 percent of my available credit lines.
• My debt interferes with my sleep, job or home life.
• I have little or no savings.
• I am receiving collection calls or notices.
• If I lost my job, it would mean an immediate financial crisis in my life.

The harsh reality is that consumers who answer “True” to two or more of the above are not candidates for a holiday shopping spree. Ignoring the reality of your financial situation will almost certainly lead to further financial distress down the road. It will come in the form of an unmanageable debt load, resulting in a damaged credit report and lower credit score, likely limiting your access to future credit. If there were ever a year to approach holiday spending with your head instead of your heart, this is it.

“Family Services, Inc. supports financial responsibility, regardless of the season,” Pena continued. “With the ghosts of Christmas past still lingering on many credit cards, piling new debt on top of old cannot be considered responsible by any measure. With any sacrifice comes reward, and the benefits of not having a mailbox full of bills in January will likely outweigh any lifestyle spending adjustments consumers make during the holidays.”

If you’re wondering how to deal with holiday spending on a limited budget, reach out for help by contacting the Consumer Credit Counseling Services division of Family Services, Inc. Call 843-735-7802, or go online to www.fsisc.org.

For the Love of $.19

Written by: Toby Smith

I had an experience this week that really brought home the message we preach to all clients-new, returning, and prospective; CHECK YOUR CREDIT REPORTS ON A REGULAR BASIS!

One of my New Year’s resolutions was to check my credit report four times a year, instead of two, and during the January check up, I was not happy to see that a problem I thought had been resolved with a local utility company was still showing on my report. I made a mental note to check it again, and to take further action, if necessary. Well, the fall check up arrived, and the problem was still not resolved so I put on my battle gear and called the company.

A pleasant representative, who verified my identity, pulled up the account, and while I couldn’t swear to it, I thought I heard her laugh before she said, “The balance is $.19 cents.”

SAY WHAT???? This has to be a joke! Either a very good one, or a really bad one, but this can’t be!

“Yes, ma’am,” the representative continued, “You did pay the account, but the cents were left off, so technically it’s not paid in full. Let me transfer you down to the credit folks,” she added rather quickly.

Lots of negative thoughts played pinball in my head and the “hold” music, some Kenny G. wannabe, was not making the situation any better. Then, another voice of authority came on the line.

“How can I help you?”

She didn’t say it, but I heard it in her voice – get to the point, no crying, and don’t waste my time!

I humbly explained my sad tale, and advised her of what I learned minutes before. She listened patiently, before dropping the hammer.

“Well, the information you have received is correct. You have two choices, wait for the information to fall off your report, or come down and pay it. We report to the credit bureaus on the 15th and the 30th.”

I went into argument mode, explaining that I had paid the balance off last year; the status should have changed. By now, I’m slightly raising my voice and ask, “Are you telling me that the status didn’t change because of 19 lousy cents? Is that what you’re saying?”

She didn’t even flinch.

“Yes, that’s correct. The bureaus do not recognize the cents, but we do, and that’s why this remains open. You can come down and pay it. We report to the bureaus…[blah, blah, blah]…and here’s your account number for future reference…[blah, blah, blah]…and we close at 5 pm. Have a nice day."

Click.

No chance of that!

Unbelievable!

So, I left work at 3:30 pm, drove 20 minutes, parked, and went inside to pay my $.19 cents. (See, it does pay to keep pennies!)

Aside from a good laugh, I would be grateful if you would take away the following:

1. Check your credit report more than twice a year. Once a quarter isn’t a bad idea, especially, if you are in serious “clean up the credit” mode.

2. Checking your own report presents no problem. However, shopping for credit generates inquiries. There are two types; hard – car dealerships, banks, credit unions and; soft – credit card promo offers, etc. Both can drop your score from three to five points a pop.

3. With respect to status, paying “as agreed” is always the goal. “Current was” means that you fell behind but brought the entry current. “Collection” indicates that you have stopped paying and “Charge off” means that the creditor wrote the item off as a lost cause. But rest assured, it will find a home on your credit report. Seeing the word “paid” in front of collection or charge off indicates that the item was addressed, which is generally a good thing for your numbers. Be careful about paying any and everything, though; some old items can get you into trouble.

4. The folks you do business with either report your monthly affairs to the credit bureau or they don’t. Hopefully they do, and it’s very important that everything goes to all three bureaus, Experian, TransUnion, and Equifax.

5. You might want to pay things down to the penny….

6. If you don’t check your credit report regularly, be prepared for the unexpected, nasty, surprises to pop up. Family Services, Inc. offers a popular class called Credit Cents, which, among other things, teaches participants how to read a tri-merge report (the three credit bureaus) report and encourages the development of a written action plan. For more information on Credit Cents call 735-7862 or visit the website at www.fsisc.org and click on Credit Improvement under Homeownership Resources or Consumer Credit Counseling.

Just a word of warning…if you come to a Credit Cents class, expect to hear this story again. If we ever meet, expect to hear about the day I had to pay $.19. My great-grandchildren–who are nowhere in sight–are going to get a letter about the benefits of checking credit reports regularly.

The receipt reads:
Prior Balance: 0.19
Payment: 0.19
New Balance 0

For the love of $.19…. smile

IS A CREDIT CARD A MUST FOR COLLEGE STUDENTS?

Family Services, Inc. Offers Alternatives for Building a Credit History

Parents across the country are having the talk with their young adult as he or she heads out the door to college. This year, however, the talk isn’t about sex, drugs and rock and roll. Instead, it’s about whether or not the student should apply for a credit card before the new regulations go into effect in February 2010. The recently passed CARD Act will require a person less than 21 years of age to either document their ability to repay the debt, or have a co-signer before being granted credit.

The new law will also regulate aggressive credit card marketing to college students. In years past, issuers enticed students to apply for cards by making offers of free t-shirts, beach balls, or even chances for an iPod. Some states have already passed laws restricting or regulating credit card marketing on college campuses, and with good reason.

A recent Sallie Mae study revealed that college seniors carried an average credit card debt of $4,100 compared with $2,900 five years ago. College freshmen tripled the amount of debt on their credit cards, going from $373 to $939 over the same date range. Keep in mind that this segment of the population typically has no income and no credit history, but has nonetheless been extended credit.

“We live in a credit-dominated society, with most of us dependent upon credit for major purchases,” said Michaele Pena, Director of Consumer Credit Counseling Services, a division of Family Services, Inc. “Ideally, while in school the student will build a thick credit file, and graduate with a positive credit report and high credit score, allowing them to then realize some of the financial dreams they’d put on hold until graduation. But providing an 18-year-old with little financial training access to a credit card is not only risky, it could be downright disastrous.”

When it comes to building a positive credit record, the student has some options. Family Services, Inc. suggests that parents and young adults consider the following when deciding what would be best for their situation:

• Become an authorized user on the parent’s card. This is a practice known as piggybacking, and is exactly what it sounds like. The student is attached to the parent’s card and has charging privileges, but no legal responsibility for payment since the card is not in his or her name. The activity on the account is reported to the credit bureau in both the parent’s name and the student’s name, thus the young adult builds a credit file of their own. This option allows the parents to monitor the student’s spending, and remove them from the card if things get out of hand.

• Get a secured credit card. This type of credit card requires a cash collateral deposit which then becomes your line of credit, thus limiting any abuse. Consumers need to be very careful when applying for this type of card, as some charge high fees which can greatly diminish your spending power. You can also expect a secured card to have an annual fee and a higher interest rate than an unsecured card. Make sure that the issuer reports to the credit bureau. If they do, and if you pay responsibly, a secured card can not only be a safe way to build a credit file, but after a year or so will likely qualify you for an unsecured card.

• Obtain a card in the student’s name. Since the clock is ticking on the availability of this option, it definitely merits a conversation between the student and the parent. If the young adult has some financial training and experience with credit, and has demonstrated that he or she can handle it responsibly, then having a card in their own name could be a good way to launch their own credit file. Student credit cards typically have low credit lines, thus somewhat limiting the amount of financial damage that can be done. However, an irregular payment history on even a small debt can damage a credit file, which defeats the purpose of having a card.

In addition to lenders, employers and landlords also review credit reports. Therefore, it is important to graduate from college, not only with a sheepskin in hand, but a positive credit file. If you need help evaluating the risks and responsibilities associated with credit, reach out to a trained and certified credit counselor at Family Services, Inc. by calling toll-free to 800-232-6489 or go online to www.fsisc.org.

How To Negotiate With Your Creditors

Consumers Need a Back-up Card

Face it, we live in a credit-dominated society. Most of us can pay cash for our daily living expenses, but when it comes time to make a major purchase such as a house or a car, we need a thick credit file with a long history of responsible payments. Credit is a convenience that keeps us from having to carry large amounts of cash, and also allows us to buy now and pay later. Admittedly, many people have taken that perk to an extreme, but used appropriately, credit can be our friend.

Many consumers are now faced with having their existing lines of credit impacted by changes to the terms of their account. Higher interest rates, lower spending limits, increased minimum monthly payments, or even closed accounts have put many on the financial ropes. For this reason, Family Services, Inc. makes the following recommendations if the terms of your account are altered:

• Ask for an explanation. Everyone deserves to know why the terms of their account were changed, so definitely inquire. Among other things, the creditor may close an account due to inactivity, because you no longer fit their business model, because you’ve become too much of a risk, or you’re no longer profitable.
• Fight to get your previous terms reinstated. If you’ve had a sporadic pay history, are at or near your credit limit, or rarely use the card, you may not have a leg to stand on. However, if you’ve been a good customer, it’s worth it to call the issuer and plead your case, but you must have your financial ducks in a row before picking up the phone.
• Build your case before you call. Know how long you’ve been a customer, the amount you usually charge each month, and underscore your good payment history.
• Prove that you’re worth having. Get your credit report for free from www.annualcreditreport.com. Review it for accuracy. After all, you want to make sure that you and the creditor are seeing the same information. Next, pay the few dollars it costs to get your credit score. If you have a solid credit report and high credit score, you should be just the kind of customer any issuer wants.
• Make them feel secure. Point out that you’re in a field that is not susceptible to layoffs, and that you have a steady income.
• Be prepared to negotiate. Know what you want before you call, and be willing to negotiate if you have to. In other words, if your interest rate has been raised and your credit limit has been lowered, start off asking that both be returned to the previous levels. However, figure out in advance which is more important to you. Do you need a low rate because you carry a balance over from month-to-month, or does a high line of credit matter more to you? If you end up in a stand-off with the creditor, you’ll know where to give.
• Ask for a supervisor. If you’re not getting the answers you want, move up the ladder until you either get what you’re after, or are convinced they are going to stand firm with their decision.
• Inquire about the opt-out clause. If it makes more financial sense to do so, ask to have your account closed, with you continuing to pay the balance under the former terms. This option is often the right one for consumers who have had their interest rate or minimum payment raised to an unmanageable level. If it’s going to be a true financial hardship to meet the new terms, then it’s better to close the account.

“Even though having more plastic can equal more temptation, it might be smart to have a back-up card in case you lose charging privileges on your primary card,” says Michaele Pena of Consumer Credit Counseling Services, a division of Family Services, Inc. “Another card can be a safety net that will keep your access to credit open. Credit can be difficult to obtain, so testing the waters by applying for one more card – not a wallet full - before you actually need it will provide a degree of comfort during these uncertain times.”

For help making sound financial decisions, building a budget you can live with, or assistance digging out of debt, reach out to a trained and certified counselor at Family Services, Inc. To find the location closest to you, call Family Services, Inc. at 843-735-7802, or go online to www.fsisc.org. For counseling in Spanish, dial (800) 682-9832.

New Law Puts Credit Card Companies in Crosshairs

From Military.com By Kelly Johnson

A new piece of legislation was recently signed into law that has credit card companies in its crosshairs. The Credit Cardholders’ Bill of Rights Act of 2009 aims to protect credit card holders from unnecessary interest rate hikes, finance charge increases and other unfair practices that ran rampant in the past.

The act — signed into law by President Barack Obama on May 22 — amends the Truth in Lending Act to prohibit creditors from increasing the annual percentage rate of interest (APR) to an existing credit card balance unless specified conditions are met. Additionally, creditors are prohibited from extending a line of credit to consumers under age 18, unless they’re emancipated under state law, or the consumer's parent or legal guardian is designated as the primary account holder.

According to bill sponsor Rep. Carolyn Maloney’s (D-NY) website other notable provisions include:

• Prevents cardholders who pay on time from being unfairly penalized.
• Protects cardholders from due date gimmicks.
• Shields cardholders from misleading terms.
• Empowers cardholders to set limits on their credit.
• Requires card companies to fairly credit and allocate payments.
• Prohibits card companies from imposing excessive fees on cardholders.
• Prevents card companies from giving subprime credit cards to people who can’t afford them.
• Requires Congress to provide better oversight of the credit card industry.

Consumer advocate organizations and lawmakers applaud the signing of the bill of rights. The Center for Responsible Lending released a statement the day President Obama signed the act stating:

“The Credit Cardholders Bill of Rights arrives just in time. If deceptive credit card activities continued unchecked — as with subprime mortgages — the results would be even more devastating for borrowers and an economy already struggling to avoid financial ruin.”

Democratic National Committee Chairman Tim Kaine also commended the move to protect credit card holders, calling the bill “comprehensive reform” that will “make it easier for Americans to pay down their debt and empower consumers to understand the terms of the credit card agreements.”

The new regulations won’t go into effect until the summer of 2010, which according to some financial experts, gives creditors time to hike up interest rates before they have to abide by the new regulations. However, Maloney has a way for consumers to register complaints if credit card issuers continue unfair practices.

Maloney proposed The Banking Hotline bill (HR 1455), which will establish a single toll-free number and website to help consumers register complaints about their banks.

10 Reasons Why The Homeownership Resource Center is Such a Valuable Asset to the State

1. The Homeownership Resource Center (HRC), a division of Family Services Inc., is the lead agency in the nation for helping individuals and families foreclosures. Our success rate hovers between 66 and 70% -- that’s unmatched anywhere else in the nation.

2. The HRC’s Mortgage Default Clinic model has been recognized as a best practice by Neighborworks America.

3. The HRC regularly receives referrals from politicians at every level, including state representatives and senators, county officials, and members of the US Congressional delegation.

4. HRC counselors recognize foreclosure scams, and since the housing crisis started 2 years ago, it has helped hundreds avoid sending money to particular people or entities promising things that sounded too good to be true. Additionally, the HRC – working with the state’s Department of Consumer Affairs – has helped many homeowners recoup their dollars.

5. The HRC has a Critical Response Coordinator, who is especially adept at pulling homes back from the auction block – in many cases, with less than 24 hours notice.

6. The HRC has unique access to mortgage lenders, servicers and providers and utilizes special phone and fax numbers, and has the ability to email designated points of contacts. Homeowners, calling on their own, face the 800-customer service number. HRC counselors speak to the representatives who can make real-time decisions.

7. HRC counselors are licensed and certified by state and national agencies. Additionally, continuing education credits required quarterly. Our counselors go beyond the standard to target emerging trends.

8. All the HRC’s mortgage default counseling services are available statewide and to residents in North Carolina. (Bankruptcy and credit counseling are not available due to state licensing laws.)

9. As a HUD-certified agency, the HRC does not charge for mortgage default counseling.

10. While the HRC works efficiently and knowledgeably, compassion for people is its hallmark, and while hundreds, if not thousands, of homes have been saved, it celebrates that families will remain together; kids won’t have to change schools, and that seniors can enjoy their golden years in the homes that hold a lifetime memories.