This week, our Financial Literacy series focuses on resources available to people affected by the housing or credit crises. If your office is counseling financially troubled families and you would like to refer them to other agencies that can also help, here are some resources to recommend:

• Making Home Affordable.gov

  Families having trouble with their mortgages may qualify for the new Home Affordable Refinance Program which allows homeowners who have paid their mortgages on time but haven't been able to refinance because of a decrease in the value of their home. This program will only be available until June 10, 2010.

  Borrowers who can no longer afford their monthly loan payments may qualify for the Home Affordable Modification Program under which lenders may reduce rates to as low as 2%, or forgive a portion of the principal. Borrowers who are current or have missed one or more payments may be eligible. This program will only be available until December 31, 2012.

  The Obama administration issued guidelines to lenders for the implementation of these programs on March 4. The programs are available now, but lenders and servicers need to make changes to their systems to accommodate new rules so it may take time before some are ready to process applications.

• Free Housing Counselors Nationwide

  Local HUD-approved housing counseling agencies can help troubled families decide what mortgage options are best for them. The agencies provide advice on buying a home, renting, defaults, foreclosures, credit issues, and reverse mortgages and there is never a fee. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.

• Avoiding Home Loan Scams

  The announcement of the new programs has, unfortunately, led unscrupulous individuals to prey on vulnerable homeowners with fraudulent mortgage schemes. The Illinois Attorney General said that so-called mortgage foreclosure rescue operations are targeting desperate homeowners to cheat them of money they can't afford to lose. "Struggling homeowners need to know that free help is available. The 24 lawsuits I have filed prove foreclosure rescue operators don't help. They [will sell you a program but they] don't call your lender, they don't modify your loan, and they don't represent you in court if you're in foreclosure." The government has announced a crackdown on these frauds, and the FTC has published a reproducible flyer with tips to avoid scams that you can re-distribute.

• Free and Low Cost Consumer Debt Counselors

  The National Foundation for Credit Counseling is a non-profit organization of local member agencies that work with individuals and families to help them manage their bills. Certified Consumer Credit Counselors can advise clients on managing money; offer solutions to current financial problems; and develop personalized plans to help prevent future difficulties. A unique feature is the Debt Management Plan, through which credit card companies and other creditors offer a reduction or elimination of finance charges, a benefit not usually available to those outside a DMP. Find a local Consumer Credit Counseling Service.

Posted 04/16/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.