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Show FrsiMA upsveps counseling, gefls 'iougher on borrowers The Farmers Home Administration with its clients feeling the pinch of tight money and high interest rates, is stepping up its efforts to provide financial counseling and supervision to its rural housing borrowers. And if that doesn't work, the agency is ready to start cracking down on borrowers who are delinquent in their loan payments. Kimball C. Harward, FmHA chief of Rural Housing in Utah, said efforts would be aimed at providing the assistance many borrowers need. 'The agency was created to provide supervised credit to both its farm and rural housing borrowers." Harward said, noting that FmHA loan programs are designed to provide budgeting, record keeping and other management assistance along with loans to help families achieve their farm or home ownership objectives. "But the tremendous demand for new loans has frequently detracted from the supervisory aspects of our programs. As a result, the combination of the generaly economic climate and the individual family financial problems are causing many FmHA borrowers to give up their low interest loans without first seeking informed advice on how best to relieve their financial crisis," Harward said. "For some, this could mean forfeiting their only opportunity to become homeowners." Inflation and reduced employment have placed a double burden on families living in small communities and rural areas, Harward said. Higher costs for utilities and other services and the added cost of transportation tran-sportation to and from work are problems that place a strain on household budgets of all rural people. Reduced working hours, loss of overtime, over-time, and in some cases, loss of jobs often make the loan seem impossible for new homeowners with young families. FmHA field office staffs are scheduling counseling interviews with borrowers who are delinquent with their payments. Families will receive assistance in analyzing their situation and working out realistic financial plans to meet their needs. 'The major task in most cases is to help families get their priorities in order," Harward said. "Next to food, shelter costs must be at the top of the priority list and be paid first." In most cases, the monthly mortgage pavment is the largest monthly ex pense and if one installment is missed, it is extremely difficult to make it up without sacrificing another crucial budget item. In the past, FmHA has on occasion accepted excuses for missed payments when other creditors were paid. As a result, some borrowers have simply paid those who have made the strongest demands. To counteract this trend, Harward said, the agency is requiring its field offices to make timely contacts with each borrower when payment is late. If borrowers are unable or unwilling to meet their mortgage payments in a timely manner and set aside savings to pay their real estate taxes when they are due, they will be assisted in liquidating their loans. "Our loan funds are going to be extremely ex-tremely limited in the future," Harward Har-ward said, "so it is imperative, therefore, that we make our resources available to those eligible families and individuals who are willing to give a high priority to their housing needs and responsibilities." |