How can credit unions provide support to members facing foreclosure?

Providing refinancing or consolidation options is a proactive way for credit unions to assist members who are facing foreclosure. By offering these options, credit unions can help members restructure their existing debts into more manageable payments, potentially lowering interest rates or extending the loan term. This support not only aids in making monthly payments more affordable but also helps members retain their homes by avoiding the stark outcome of foreclosure.

In contrast, encouraging members to wait until foreclosure is finalized does not provide any tangible support or solutions to address their financial difficulties. Suspending all communication with members would only exacerbate feelings of isolation and confusion during an already stressful time. Increasing fees on late payments would add financial strain, rather than alleviate it, placing members in an even more precarious financial situation. By focusing on refinancing or consolidation, credit unions demonstrate a commitment to helping their members navigate challenging financial circumstances.