AICCCA Warns Delay Will Only Worsen Mortgage Woes


Fairfax, VA - April 20, 2007 — Many American borrowers are on the brink of losing their homes. First American Corp. determined from a recent study that 1.1 million homeowners are expected to default on their adjustable rate mortgages. The Association of Independent Consumer Credit Counseling Agencies (AICCCA) urges consumers not to wait to contact their lenders or seek help from a housing counselor if they have missed a mortgage payment or will have to miss a payment in the near future.

"It is not uncommon for people to be less than eager to let a lender know they cannot make their mortgage payments," said David Jones, president, AICCCA. "What they don't realize is that the lender will in most cases work with them to help them stay in their homes."

Help is available for those unable to meet their current mortgage payments. AICCCA offers the following tips to act now and not delay:


• Contact the lender before you miss a payment. The sooner your lender knows that you need assistance with your mortgage, the better the chances that you will receive the help you need.
  
  
• Know the types of assistance available. Many options are available to help and your lender likely has programs that include all or some of them. Examples include: an adjustable rate mortgage loan can be reset for a year or two; the loan can be refinanced for a longer term and/or at a lower interest rate; your payment can be deferred for a specified period to allow you time to catch up on other financial obligations.
  
  
• Consider housing counseling with a HUD approved agency. Seeking help from a qualified housing counselor gives you the opportunity to discuss your situation with a trained professional who will communicate with your lender on your behalf.
  
  
• Beware of companies contacting you offering help. Be especially wary of companies that require an upfront fee. Check with your local Better Business Bureau and don't sign anything unless you've had a qualified third party review it.

To find a HUD-approved housing counseling agency contact AICCCA at 866-703-TRUSTAICCCA (866-703-8787) or visit www.aiccca.org.

Founded in 1993, Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services. AICCCA and its members are focused on improved creditor relations, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, counsel millions of consumers annually nationwide and provide debt management services to consumers with excessive unsecured debt. For more information or to contact an AICCCA member office call 866-703-TRUSTAICCCA (866-703-8787) or visit www.aiccca.org.