Foreclosure Mitigation Counseling Initiative

The Pennsylvania Housing Finance Agency (PHFA) has established the Foreclosure Mitigation Counseling Initiative to help interested homeowners to save their homes. Twenty-Eight counseling agencies in the PHFA Comprehensive Housing Counseling network are participating in this program.

Mortgage foreclosure mitigation assistance will be made available to homeowners of owner–occupied homes with mortgages in default or in danger of default. These mortgages may be subject to a foreclosure action. Homeowners will be provided with such assistance that will consist of activities that are likely to prevent foreclosures and result in the "long-term affordability" of the mortgage or other positive outcomes for the homeowner.

The counseling sessions associated with this initiative are free services to the homeowner and will involve a reasonable analysis of the borrower's financial situation, an evaluation of the current value of the property that is subject to the mortgage, and/or counseling regarding the possible purchase of the mortgage in question. Consumers will also be given information regarding the use of Homeowners' Emergency Mortgage Assistance Program (HEMAP), Refinance to an Affordable Loan Program (REAL), and the Homeowners' Equity Recovery Loan Program (HERO). Counseling and advice of all likely restructuring and refinancing strategies or the approval of a workout strategy by all interested parties is required.