Holistic financial counseling – counseling that focuses on a borrower’s entire financial situation – can prevent both foreclosures and re-defaults, according to a recent White Paper study sponsored by Florida-based special servicer, Outreach Financial Services, and authored by STRATMOR's Dr. Matt Lind.

According to the white paper, servicers avoid net losses of about $3,894 on an average $210,000 loan for each borrower who receives basic counseling. However, this figure increases to between $5,754 and $7,147 when borrowers receive holistic counseling aimed at their total debt and spending patterns.