How to find the right financial counselor.Hawai‘i has been fortunate to be among those states with a lower rate of foreclosures than many states on the Mainland, including California and Nevada. When the possibility of foreclosure occurs, it’s a good idea to seek financial counseling. But, how do you know that one counselor is more qualified than another?
The best way to find a counselor is to ask friends, colleagues at work, people you trust and family members. If you know someone who has been in a successful counseling program, find out what they liked about it and if it might also work for you.
When seeking the services of a homeownership and education counselor ask for evidence of professional background and a track record as a counselor.
The “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005” (BAPCPA) has provisions that require individuals who may be considering bankruptcy to complete credit counseling before filing for bankruptcy. In addition, they are also required to take personal financial management classes before their debts can be discharged.
To meet the requirements of BAPCPA, only lessons taught by U.S. Trustee-approved counselors will meet the law’s educational provisions.
Other counselors may subscribe to the “National Standards for Homeownership Education and Counseling,” endorsed by the U.S. Department of Housing and Urban Development (HUD), lenders, real estate, mortgage insurance companies, secondary mortgage market institutions and community-based organizations.
Counselors may also be members of the National Foundation for Credit Counseling (NFCC), a nonprofit credit counseling network, which includes the Consumer Credit Counseling Service (CCCS) and others that are identified by the NFCC member seal.
In addition, the Council on Accreditation of Services for Families and Children Inc. (COA) accredits all NFCC members.
Avoid those who make promises to get you out of trouble quickly with little effort. Don’t sign documents you don’t fully understand and steer clear of come-ons that require you to pay high fees upfront.
If you suspect illegal action on the part of a counselor or firm offering counseling services, call the state attorney general, contact the Federal Trade Commission online or call (877) FTC-HELP (382-4357).
Premiere Mortgage has offices on Maui and Kaua‘i and provides a wide range of services to the real estate community. Tricia Morris may be reached on Maui, in Kihei, at 874-8800, Wailea, at 891-8900, West Maui at 665-8800, on Kaua‘i at (808) 822-2300, or toll-free at (800) 813-7711.