Agency Receives Grant, Helps California Homeowners Facing Foreclosure

SAN FRANCISCO (KCBS)— The California Housing Finance Agency has received a $3.2 million federal grant to provide financial counseling for homeowners who face possible foreclosure.

Marketing Director Ken Giebel said the money will provide counseling to another 12,000 homeowners trying to dig themselves out of debt, in default or in danger of defaulting on their mortgages

KCBS' Barbara Taylor Reports:

This is the fourth grant CalHFA has received in partnership with the Rural Community Assistance Corporation to aid families in financial distress.

While CALHFA can't force lenders to re-negotiate loans, counseling can give homeowners tools to work on their problems.

"We suggest going to counseling. They can help them with loan modifications, a short sale or just provide some general counseling to see if they can get back on track," said Giebel.

Giebel added that people who have had counseling are likely to have done better in the modification process than people who haven't.

To find a counseling location you can check online at CalHfa.ca.gov.

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