5.1 Avoidance Strategies and Industry Practices

Module Summary Clients facing the daunting prospect of foreclosure are in crisis mode. They seek assistance with handling past due bills, determining if they can afford their home in the years to come, and working with servicers to request retention options to remain in their homes. In this module, you’ll learn about key reasons for foreclosure and industry practices that contributed to the most recent foreclosure crisis, regulatory changes in the mortgage industry created to protect consumers, basic types of foreclosure procedures, and options available to a client facing foreclosure.

Learning Objectives By the end of this module, counselor will be able to:

  • Demonstrate comprehension of the events leading up to the most recent increase in foreclosure rates by naming three mortgage industry practices that increased rates of mortgage default by borrowers.
  • Demonstrate comprehension of recent regulatory changes and nationwide legal settlements that may help a client avoid mortgage default and foreclosure.
  • Apply knowledge of key foreclosure-related documents for both a judicial and non-judicial process when discussing the foreclosure process with a client.
  • Evaluate a client’s financial situation and reason(s) the client is facing foreclosure.
  • Apply knowledge of different options available to a homeowner facing foreclosure such as establishing an emergency budget, helping to determine if the client should stay in the home, and the workout request process.
  • Apply knowledge of payment assistance programs describing common attributes of those programs to clients seeking information.