Mortgage Counseling Group Sees Spike in Calls

Washington, DC, July 16, 2012 -- Mortgage counseling group Home Preservation Foundation is reporting that calls to its hotline from homeowners who are current on their mortgages are up 70% since last June.

That might signal a new wave of foreclosures, which has been predicted for some time.

The non-proft reports that among current borrowers who called for mortgage counseling, 75% had credit scores well above what was considered subprime level when they got their mortgages.

However, economic factors like unemployment have made their finances shaky.

“We are seriously concerned about the rise in homeowners who were classified as low risk when they took out their mortgages and, as a result of a combination of circumstances—job loss, health-care crises and various recession-related issues—have seen their economic situations severely deteriorate,” said Colleen Hernandez, chief executive of the nonprofit foundation, in a press release.

“This could result in the proverbial ‘second shoe to drop’ for the housing crisis, especially considering the limited options available to homeowners who are struggling but not yet delinquent.”