Springboard Launches Help for Struggling Borrowers Facing Reset on Home Equity Lines of Credit

Springboard Nonprofit Consumer Credit Management, Inc. (“Springboard”) is pleased to announce the expansion of services available for home loan borrowers that need help with recent or upcoming increases on their Home Equity Line of Credit (HELOC) or second mortgage payments. Borrowers who are facing unaffordable increases in their loan payment amounts can call Springboard at the agency’s dedicated toll free number to connect with certified housing counselors as well as visit HELOCHelp.org. The site, developed exclusively by Springboard, provides extensive information and references to help borrowers find the assistance they need.

According to Lender Processing Services, more than three quarters of HELOCs outstanding today were taken out between 2004 and 2009. A great many of these loans have lower payment terms for the first 10 years before resetting, in most instances to fully amortizing loans, resulting in substantial increases in monthly payment amounts. According to a published report by Reuters, a new wave of U.S. mortgage trouble threatens, as more than $221 billion of HELOC loans at the largest banks will reset over the next four years, about 40 percent of the home equity lines of credit now outstanding. Depending on the amount and terms of the loan, borrowers with payment changes on their HELOCs could see their monthly mortgage payments rise considerably. An economic outlook indicates delinquencies on HELOCs resetting at the 10-year mark could almost double.

HELOCHelp.org provides educational content, tools and access to help borrowers with information on wide-ranging topics, including:

  •     Loan payments and default
  •     Options for refinance or loan modification
  •     Qualifications for mortgage relief programs

“Borrowers have reported their HELOCs have reset to fully amortizing loans and fear missing payments on HELOCs they acquired during the nation’s housing bubble. This web portal is designed specifically to address questions and provide direction for borrowers with resetting HELOCs,” said Aaron Horvath, executive vice president for Springboard. “We anticipate that many homeowners who acquired a HELOC now have less equity in their home than when they originally took out the loan and may not qualify for refinancing now in order to afford the resetting loan. We encourage borrowers to call Springboard at (888) 891-6976 today to request a HELOC counseling appointment to discuss their options.”

HELOCHelp.org is accessible 24/7, and is available nationwide. It is the only web portal designed specifically for homeowners with a resetting HELOC. Borrowers can logon to the website to schedule a priority HELOC counseling appointment with Springboard’s certified housing counselors, who will work one-on-one with the borrower to develop a customized action plan. Borrowers may also receive assistance applying for any mortgage relief options for which they qualify. Provided as a free service, Springboard will collect and submit all the required documents for mortgage relief programs.

“Springboard has helped more than 5.2 million consumers in its more than 40 year history,” said Horvath. “HELOCHelp.org is a further extension of the services that we are able to provide to the community.”

About Credit.org

Credit.org is a 501(c)(3) nonprofit personal financial education and counseling organization founded in 1974 with the mission of improving the financial well-being of individuals and families. Credit.org is a HUD-approved housing counseling agency and a member of the National Foundation for Credit Counseling and Association of Independent Consumer Credit Counseling Agencies. Credit.org offers personal financial education and assistance in credit counseling, housing counseling, debt and money management, pre-bankruptcy counseling and debtor education through educational programs and confidential coaching. Credit.org is accredited by the Council on Accreditation, signifying the highest standards for agency governance, fiscal integrity, counselor certification and service delivery policies. Counseling is available by telephone nationwide or in-person at office locations in California, Arizona, Nevada, New Mexico, Texas, Massachusetts, South Carolina, Florida and Maryland. For more information on credit.org, please call 800-449-9818 or visit their web site at credit.org.