The National Foreclosure Mitigation Counseling Program is successful in helping 373,169 homeowners avoid repossession properties, according to the NeighborWorks America, a group that helps financially strapped homeowners.

A report released by the NeighborWorks America stated that only 2 percent of homeowners who sought counseling to avoid repossession properties have lost their homes. Data covers the period from March 2008 to February 2009.

According to the group, the program which it administers, was able to help about 25 percent homeowners remain in their homes and avoid repossession properties. Those who remained in their homes do so by working out repayment plans with mortgage lenders. Some continue to stay in their homes while negotiating with their lenders.

The report signifies good news to the housing market being battered with surging foreclosures. RealtyTrac reported that 342,000 homeowners received notices of foreclosure in April. The surge in April foreclosures is being blamed on the lifting of foreclosure moratoriums in some states.

Meanwhile, home market prices continue to drop precipitously, prompting some homeowners to abandon their distressed properties because they believed that it is not worth to continue paying mortgages on a property that has less value.

Doug Robinson of NeighborWorks in Washington said that the report showed that troubled homeowners who seek counseling immediately have a greater chance of avoiding repossession properties.

He added that those who seek early counseling also have a better opportunity of availing a loan modification and affordable payment plan. Meanwhile, the report also showed the depth and extent of the foreclosure problem.

According to NeighborWorks, 53 percent who sought the counseling are minorities. The sad news is, minorities accounted for only 24 percent of the nationwide homeowners. And while mortgage interest rates were only about 5 percent, 18 percent of Hispanic homeowners and 35 percent of African-American borrowers have mortgage loans with interest rates higher than 8 percent.

On a positive note, many homeowners who are financially strapped have immediately heeded the advice to seek early counseling. Also, more than 50 percent of homeowners who sought help were less than two months delayed on their mortgage payments. In fact, 30 percent of homeowners who sought help were current in their accounts.

The report also noted that many homeowners who are at risk of repossession properties are having difficulty meeting their mortgage obligations, with 39 percent paying over half of their earnings to housing costs and 20 percent paying 75 percent of earnings on mortgage.