Housing crisis advice
As more consumers struggle to pay the mortgage, Sheila C. Blair, chairwoman of the Federal Deposit Insurance Corp., offered this advice in a speech I attended this morning at the annual conference of the Society of American Business Editors and Writers in Baltimore. Blair’s photo is at 
right:
- Work with a reputable housing counseling agency. Many are the same that offer general credit counseling. Some of the good ones go by the name CCCS, Consumer Credit Counseling Service. See this column on how to choose a good credit counselor.
- Call your loan servicer. This might or might not be the bank that originally approved your mortgage. It’s the company you now send checks to.
- Seek a loan modification. With a loan modification, the lender generously modifies your loan terms – such as extending the length of time you can remain at a favorable interest rate. This is different than a mortgage refinancing, which will incur fees. “These loan modifications are supposed to be free,” Blair said. “There should be no cost with a loan modification.”
