Wednesday, March 20, 2013

Foreclosure Prevention Starts Before the Mortgage Is Even Signed

Homebuyer education dramatically decreases probability of delinquency 

New research from NeighborWorks America conducted by Neil Mayer & Associates and the credit bureau Experian finds that homeowners that receive pre-purchase education and counseling services, like those offered by the Homeownership Advisors Network in Minnesota, are 30% less likely to become seriously delinquent on their mortgage in the first two years after closing.

The study looked at over 75,000 mortgages originated between 2007 and 2009 to see the effect pre-purchase education and counseling services had on the probability of a loan becoming seriously delinquent in the first 24 months:

The research shows that the investment the Minnesota Homeownership Center has made in homebuyer services over the last 20 years helped lessen the effects of the foreclosure crisis on Minnesota.

In the last ten years alone, almost 50,000 households have graduated from Home Stretch.  Thanks to the knowledge they received in Home Stretch, hundreds of homeowners avoided falling seriously delinquent on their mortgage.  For more information on Home Stretch, check out our most recent Homebuyer Services report, here.

NOW... Minnesota homebuyers have the option of completing this important workshop in person (Home Stretch) or ONLINE via Framework.    Framework is a high quality, interactive way to learn how to be a smart, confident and successful homeowner, FRAMEWORK™ provides the facts you need to become well-informed about every step in the process.

In addition, the Bipartisan Policy Center’s Housing Commission recently reiterated the important value of quality housing counseling.  According to the report, Housing America’s Future, ‘…housing counseling can improve prospective borrowers’ access to affordable, prudent mortgage loans, especially for families that otherwise might not qualify or who may experience other barriers to mainstream lending.’

Better access to quality loans, fewer delinquencies.
That’s why we support homebuyer services in Minnesota.

No comments:

Post a Comment

This is a moderated blog. That means all comments will be reviewed before posting. In addition, we expect that participants will treat each other, as well as the Center, our Counseling Network and other partners, with respect. We will not post comments that contain vulgar or abusive language; personal attacks of any kind; any offensive terms; spam; are clearly “off topic” or that promote services or products. Comments that make unsupported accusations will also not be posted.