The ongoing foreclosure problem facing U.S. homeowners is about to get worse now that Congress has eliminated the entire mortgage-counseling budget for HUD, the Department of Housing and Urban Development. The 2011 federal budget completely eliminates all $88 million in HUD funds for housing counseling. It's yet another blow to those struggling to stay in their homes, especially African-Americans, who have borne the brunt of the mortgage meltdown and the U.S. housing crisis. There were a record 3.8 million foreclosure filings in 2010. And since even more foreclosures are expected in 2011, housing advocates are shocked at the magnitude and timing of the HUD mortgage counseling cuts. After all, it was the housing mess that tipped America into the Great Recession. George Roe, Chief Operating Officer of the National Foundation for Debt Management, a HUD-certified credit counseling agency that helps struggling homeowners called the funding cuts "devastating,†and said "the timing of these cuts could not have come at a worse time.†"It seems that most of our counseling sessions are growing more complex, requiring additional time to complete as well as an enhanced skill/knowledge ability for our counselors,†Roe said. "This does not come without additional costs to provide these services.†"The end result is that our agency will be forced to reduce our staff and some of our much needed services that we provide,†he added. "I believe that this will be the case for most HUD approved agencies throughout the country.†Russell Graves, Executive Director of Consumer Credit and Budget Counseling, another HUD-certified agency, echoed Roe's sentiment. "The housing counseling industry is reeling from this blow,†Graves said. "We all understand the need for government support cuts to balance the budget, but this was unexpected.†"Taking away funding for housing counseling is selling the American homeowner short,†Graves added. Housing counseling is designed to educate and empower consumers, giving them the knowledge and information they need to make good choices when it comes to buying — and keeping — a home. In decades past, getting a mortgage and buying a home was a relatively simple process. Most people bought reasonably-priced homes, obtained a 30-year-mortgage, and could count on their homes appreciating in value. Today, however, despite the recent drop in values, housing prices remain out of the reach of many would-be buyers. What's more, the mortgage process is far more complicated, as is the range of mortgage products being offered to consumers. And unfortunately, most U.S. home buyers are ill prepared to take out a mortgage, with nearly half of them failing to understand the basics about mortgages, according to a May 2011 Zillow Mortgage Marketplace survey. For instance, 57% of prospective homebuyers polled did not understand how adjustable rate mortgages (ARMs) work. That's why housing counseling is so vital. So if you're having trouble paying your mortgage, where should you turn for help? Here click to the next page for 5 tips to keep in mind: 1) Start by contacting your lender or loan servicer. Unfortunately, many people on the brink of missing a payment say that banks won't do anything for them until the homeowner misses a payment. As frustrating as this scenario can be to deal with, it's still wise to advise your lender of problems you may be facing in order to inquire about any special programs, loan modification initiatives or other options they may offer. 2) Seek reputable housing counseling. Even after the HUD funding cuts to mortgage counseling agencies, some agencies may still opt to provide this service free of charge to consumers. Others housing counseling agencies simply won't be able to afford to provide this service at no cost, and will thus begin to charge consumers. You'll only know if an agency's mortgage counseling help is free or not by contacting the entity in question. So be prepared to call a few agencies to track down free assistance. If you can't find any free agencies, you'll have to pay for mortgage counseling. Such help can be well worth it if the advice and information you get from a HUD-certified credit counseling agency helps you remain in your home. To locate HUD-approved housing counselors, call 888-995-4673 or visit http://makinghomeaffordable.gov. 3) Never sign over your deed. Be wary of people who approach you claiming they can help you "save†your home. Some of these are foreclosure rescue scams. Also, never sign over the deed, or agree to transfer title to your home–even if someone promises to let you stay in the house or rent it. Doing so could put your ownership of the property in jeopardy. 4) Only make payments to your lender or mortgage servicer. Even if a third party helps you, perhaps by serving as a "middleman†to negotiate with your lender or loan servicer, don't make any mortgage payments to this third party. Don't even agree to turn over your housing payment to a third party under the notion that they will make mortgage payments on your behalf. If the third party doesn't make payments as agreed, you will have very little recourse to recoup your funds and get caught up with your lender.