Foreclosure Help for Wells Fargo / Wachovia Customers

The Minnesota Home Ownership Center and its network of non-profit Foreclosure Counselors are pleased to have been invited to participate with Wells Fargo Home Mortgage (and Wachovia Mortgage) at a large-scale event that begins tomorrow, February 17th at the RiverCentre in St. Paul.

Homeowners will be able to sit down face-to-face with representatives from Wells Fargo Home Mortgage and Wachovia Mortgage to discuss their options for avoiding foreclosure.  Event planners expect hundreds of struggling homeowners will be helped at the event.

Are you a Wells Fargo or Wachovia Mortgage customer struggling with your mortgage payments? If so, you're invited get the answers:

Event Details:
February 17th and 18th
10:00am - 7:00pm
St. Paul RiverCentre, Grand Ballroom
175 West Kellogg Blvd. St. Paul, MN

Walk-Ins Welcome, but pre-registration is recommended:
www.wfhmevents.com/leadingthewayhome

For an event flyer, click here.

For a map to the RiverCentre, click here.

Representatives from the Minnesota Home Ownership Center will be on hand as well as Foreclosure Counselors from:

• Community Neighborhood Housing Services
• Community Action Partnership of Suburban Hennepin
• Minneapolis Neighborhood Housing Services
• Neighborhood Development Alliance (NeDA)
• Twin Cities Habitat for Humanity
• Washington County Housing & Redevelopment Authority

Unable to attend?  Not a Wells Fargo customer... but struggling with your mortgage?  Don't delay... contact a FREE foreclosure prevention counselor TODAY for advice and options.  To find YOUR local Foreclosure Counselor, click here.

Down Payment Help and Affordable Loans in Minnesota

Earlier this week, Minneapolis Mayor R.T. Rybak and Saint Paul Mayor Chris Coleman announced that $41 million in new funding is available for first-time homebuyers to purchase homes in Minneapolis/St. Paul, and other organizations and municipalities have made similar announcements recently. 

The Minnesota Home Ownership Center has information about these programs and DOZENS of others that can be used to assist YOU or your clients purchase a home in Minnesota.  In November of 2009 we introduced our "Entry Cost Assistance Matrix" that outlines the down payment programs, closing costs assistance and other funds available to first-time buyers in Minnesota.  We've now updated the Matrix for the first quarter of 2010!  To view the matrix, click here.

The Matrix is organized geographically, which allows readers to quickly find the area of the state that they are most interested in.

Remember: Funding for down-payment assistance and entry-cost help is FLUID. The information may change. Please contact a program administrator to see if funds are available, and, if not, if there is a waiting list for access to the funds.

The Center has also updated its Affordable Loan Product matrix.  The Affordable Loan Product Matrix can be accessed here.
 
Home ownership is expensive and first-time buyers should never base their home-buying decision on a down-payment program or tax credit. There are MANY other factors when deciding whether home ownership is right for YOU or not. Before purchasing YOUR first home... take a Home Stretch Workshop (pre-purchase education workshop) to learn what's involved, and speak with a non-profit Housing Counselor to see if you might qualify for any down-payment assistance or other first-time buyer programs.  For more information, click here.

Center Sightings: Radio & TV

The Minnesota Home Ownership Center is pleased to have been a part of TWO news stories this week on local media outlets.

The first story, covered by Minnesota Public Radio, Ed Nelson, Marketing and Communications Manager for the Center discusses the discrepancy between RealtyTrac foreclosure counts and HousingLink's foreclosure study that the Center partially funds.  You can follow that story here.

The second story, on WCCO, covers the Center's participation in next week's "Home Preservation" event with Wells Fargo at the St. Paul RiverCentre.  The MN Home Ownership Center was pleased to be invited to participate in this large scale (4 - 600 people are expected) event hosted by Wells.  We'll be following up with additional information about the event and the network of Foreclosure Counselors that will be participating in a blog post shortly.  You can see Julie Gugin, the Center's Executive Director, in the WCCO story here.

We participate in stories like these for one purpose: to let struggling homeowners know that there is a LOCAL, FREE resource available to them right here in Minnesota.  Our network of Housing Counselors is ready to assist Minnesota Homeowners with their mortgage questions.  Struggling with your mortgage?  Click here for help.

Foreclosure Prevention Workshop for Unemployed

The Minnesota Home Ownership Center, the Community Action Partnership of Suburban Hennepin County and the Minnesota WorkForce Centers are working together to offer free workshops for homeowners who are worried about making upcoming mortgage payments, are already facing foreclosure or for anyone interested in learning more about the foreclosure process in Minnesota.

The workshop will provide information on what happens during foreclosures, homeowners’ rights, and solutions for long-term housing needs. Participants will be able to ask questions and get free advice – confidentially - from local, non-profit foreclosure counselors.

The first workshop in the series will be held on Thursday, February 18th at the Hennepin South WorkForce Center (Bloomington) from 10:30am to 12:00noon.

For a map to the Hennepin South WorkForce Center, click here.

For a press release of the upcoming workshop, click here.

For a flyer you can freely distribute to help us promote the workshop, click here.

To view all upcoming workshops hosted by the Center, click here.

Housing Data: Great Info From MHP

Minnesota Housing Partnership (MHP) is a non-profit housing organization that the Center has worked with on a number of housing issues that provides resources to help community organizations, businesses, municipalities, and elected officials in Minnesota understand the housing market (both ownership and rental)... with the goal of advocating for the creation and preservation of affordable housing. MHP’s resources include research, advocacy, technical assistance, and financial tools and support.

MHP has produced their "Slideshow: 2010 Housing Facts for Advocates" that is chock full of slides and talking points that cover current statistics ranging from housing cost burden and unemployment to foreclosures and at-risk homeowners. Some of the data produced from the Minnesota Home Ownership Center's work is included in the slideshow.

There is a ton of great information on these slides that can be used to address a number of housing needs.

To view the slideshow, click here.  To view MHP's other fact sheets and talking points, click here.

SAFE ACT Threatens Foreclosure Counseling

UPDATE: Comment period extended until March 5th, 2010.

The federal Secure and Fair Enforcement for Mortgage Licensing Act of 2009 (SAFE Act) compels states to adopt a uniform process of licensing and reporting for state-licensed loan originators. Its intent is to ensure that residential mortgage loan originators act in the best interest of consumers.

Based on the definitions in the legislation and the accompanying HUD Federal Register, foreclosure prevention counselors - like those in the Center's network - likely will be considered loan originators.

Including Foreclosure Counselors in the legislation will necessitate extreme costs, irrelevant education and unreasonable redundancies, all of which could jeopardize the existence of free, unbiased, trusted, effective foreclosure prevention counseling services at a time when they are most needed.

The Center recently submitted the following comments to HUD and encourages others to do so as well:

Third party loan modification specialists should NOT be covered by the licensing requirements of the SAFE Act; specifically, those housing counselors working for nonprofit and government based organizations to provide much needed foreclosure prevention assistance at no charge to consumers.

While a housing counselor may take some information from consumers to share with lenders in negotiating a loan modification, the counselor is not using that information to underwrite a loan, but rather to assist homeowners in evaluating their position and/or re-negotiating the terms of the loan with the lender. In addition, the statutes imply that the drafters' intent was to include individuals who are in a position to have some level of "adversity" vis a vis the borrower. This is clearly not the case for foreclosure prevention counselors. Furthermore, assistance with loan modifications is a relatively small part of the counselors' job. The preponderance of their time is spent on other activities: explaining the foreclosure process, review of existing mortgage documents, budget counseling, and reviewing and negotiating loss mitigation options other than loan modification. 

I urge you to exempt foreclosure prevention counselors or allow individual states the power to exempt foreclosure prevention counselors.

Please consider submitting these, or other comments to HUD as well.

All comments are due February 16th. March 5th.   Submission instructions appear in the proposed rule: http://www.hud.gov/offices/hsg/ramh/safe/safeprule.pdf

For additional information about the SAFE Act, visit the Center's website, here.

FTC Proposes Limits on For-Profit Loan Rescue Companies

Following the lead of states like Minnesota… the Federal Trade Commission (FTC) is proposing a new rule that would prohibit for-profit loan modification companies from charging an upfront fee for services. Companies would also have to disclose to consumers that they are for-profit, total fees they will charge, clearly state that they’re not associated with the government or the lender, and the fact that there’s no guarantee that the lender will agree to a loan modification.  Many of these proposals are already in effect in Minnesota.

There is a Federal Register published and the public comment period closes on March 29.  You can view the Federal Register, here. 

For more details, visit http://www.ftc.gov/opa/2010/02/mars.shtm

The Center has repeatedly warned homeowners about exercising caution when working with ANYONE in a foreclosure situation.  We've even created a fact sheet (available here) to help homeowners. 

To find your local non-profit, FREE Foreclosure Counselor, click here. For additional information about preventing foreclosure in Minnesota, click here.

Sued - After A Foreclosure

The Minnesota Home Ownership Center's network of Housing Counselors (Foreclosure Counselors) has begun to see an uptick in lenders seeking deficiency judgments AFTER a foreclosure... and, without getting too technical in this blog post, we felt it was important to warn struggling homeowners and our partners about this new trend:

A deficiency judgment is “a judgment lien against a debtor, defendant or borrower whose foreclosure sale did not produce sufficient funds to pay the mortgage in full.”

In plain English: a homeowner can be sued for the difference between the amount the bank received when they auctioned off the house at the Sheriff’s sale, and the amount of the outstanding mortgages.

Minnesota is a ‘Non-Recourse’ state. This means that FIRST lien holders CANNOT seek judgment (cannot sue) former homeowners for outstanding funds. HOWEVER... any “Junior” lien-holders CAN. If there is more than one mortgage on the property – or if there is a line of credit or HELOC taken out against the property – THOSE lenders CAN sue the former property owner for payment of any outstanding debt!

Here’s a realistic scenario:

• If a homeowner purchased a $200,000 home in 2005 and financed the purchase 100% using an 80/20 loan (80%, or $160,000 financed with one lender who holds first lien position, 20%, or $40,000 financed with a second lender who holds second lien position).
• Now, given current market circumstances in Minnesota, the home may only sell for $150,000 at the Sheriff’s Sale.
• The first lien holder (who was owed $160,000) is wiped out. The homeowner does not owe this first lien holder any additional funds, and the first lien holder CANNOT sue the former homeowner for the ‘deficiency’ of $10,000. ($160,000 - $150,000).
• HOWEVER… the second lien holder CAN sue the homeowner for their ‘deficiency’. In this scenario… they can sue for the ENTIRE outstanding amount of $40,000. (To keep the math simple, we’re assuming that no principal was paid down in the last 5 years).

If the lender seeks a deficiency judgment, the former homeowner may find themselves having their wages garnished, tax returns withheld or garnished and other consequences.

Here’s the kicker - - - lenders can take up to THREE YEARS SIX YEARS after the Sheriff’s Sale to decide whether or not to seek judgment! THREE.YEARS. SIX.YEARS. (!)

Former homeowners may find themselves being sued for outstanding mortgage debt YEARS after a foreclosure... just as they begin to rebuild their financial lives.

Jennifer Lancour, a Housing Counselor at PRG, Inc., one of the organizations that work with the Minnesota Home Ownership Center to offer Foreclosure Prevention Counseling, stated recently:

We’ve always counseled clients about the possibility of Deficiency Judgments in situations where there is more than one lien on a property. But in the past it was unlikely that a lender would seek judgment. Since the middle of last year, we’ve started seeing more and more clients coming back to us after a foreclosure looking for assistance because they’ve been served court papers.

In addition, Homeowners also need to be EXTREMELY careful when negotiating a SHORT SALE on their property as well. If the negotiations aren’t done properly, even the FIRST lien holder can seek judgment for any deficiencies.

The MN Home Ownership Center has a helpful fact sheet on its website about deficiency judgments (with MANY thanks to the Housing Preservation Project for their work!). You can download the fact sheet here.

Deficiency Judgments are just ONE of the MANY considerations struggling homeowners need to think about when facing a possible foreclosure. If you, or someone you know is struggling with mortgage payments... don't wait until it's too late. To find your local non-profit, FREE Foreclosure Counselor, click here. For additional information about preventing foreclosure in Minnesota, click here.

Success: a follow-up email we received

Back in December, the MN Home Ownership Center, with the help of 14 non-profit foreclosure counselors from the Center's network of providers, more than a dozen additional volunteers, and representatives from Wells Fargo Bank, held a workshop on foreclosure avoidance that was attended by hundreds of homeowners from Minnesota's SE Asian community.  (More info on the event here).

Today the Center received a follow-up email from one of the volunteers at the event:

I volunteered at this event to learn more about the foreclosure process so I could better serve my members. After learning about this event, I strongly encouraged one of my members, who was in foreclosure to attend the event. I was thrilled when she attended, knowing she was already in 4+ months of not paying her mortgage. I am very happy to report that today, I learned, with the assistance of your workshop and being connected to a foreclosure specialist, she was able to qualify for modifying her mortgage and has decreased her monthly payments from $950 to a more manageable $674. The most rewarding part of this, is knowing that she, her husband (both who are disabled) and their 7 children will still have somewhere to live. Thank you for all the hard work you do.

These are the success stories that keep us motivated here at the Center.  Our mission is "Succesful Home Ownership"... and we're glad we were a part of this family's success! 

The Center is currently finalizing its Foreclosure Counseling Report for 2009 which we'll be releasing in the coming weeks.  The report aggregates thousands of stories like the one above.  Stay tuned for more information.  (You can subscribe to receive our blog posts via email on the right-hand side of this page, or subscribe to our RSS feed here).

For more information on events, workshops and future trainings, visit the Center's website here.

FHA Rule Change for Loss Mitigation

One of the most frequent 'concerns' that the MN Home Ownership Center receives from clients that are trying to be proactive about foreclosure avoidance - that is, they are trying to work with their lender/servicer BEFORE they fall behind in payments -  is that their lender can't work with them until they are already delinquent. 

In some instances... this was actually due to an invester policy with FHA-backed mortgages. Homeowners were not eligible for loss mitigation services until they were at least 30 days behind on payments

HUD has announced a rule change for FHA-backed mortgages, and now homeowners experiencing financial hardship who have FHA loans are now eligible for loss mitigation before they fall behind on their monthly payments. Now, loss mitigation options of forbearance and FHA-HAMP may be used when borrowers are “facing imminent default.” For more information, see HUD’s press release here.

If at all possible... homeowners should seek solutions BEFORE falling behind in payments.  If you, or someone you know is struggling with mortgage payments... don't wait until it's too late. To find your local non-profit, FREE Foreclosure Counselor, click here. For additional information about preventing foreclosure in Minnesota, click here.

New Report: 2010 Will Be Bad Year for Foreclosures

Just wanted to call attention to a new report on the health of our housing market and the progress of loan modification efforts.  The report is produced by a working group of state Attorneys General and banking regulators from across the U.S.

The easy-to-digest report predicts a dramatic acceleration of foreclosures in 2010.  Here's a snippet from the rather gloomy introductory paragraph:

... one in seven borrowers is behind on their mortgage. One in four homeowners with a mortgage owes more than their home is worth. The unemployment rate is 10% nationally, with millions of additional Americans either out of the workforce or underemployed. Hundreds of thousands of homeowners have “pay-option” ARM mortgages that are ticking time bombs for payment shock, when these loans reset to much higher payments. Despite efforts of servicers, homeowners, and the government, the foreclosure crisis continues to worsen. These signs point to more foreclosures in 2010 than in 2009. (Highlight Ours)

Remember... the sooner you or your clients seek help to avoid foreclosure, the more options they have available.  If you, or someone you know is struggling with mortgage payments... don't wait (and don't EVER pay for help). To find your local non-profit, FREE Foreclosure Counselor, click here. For additional information about preventing foreclosure in Minnesota, click here.

2009 Tax Returns and the Homebuyer Credit

Back in  November, the Center highlighted information about the "Worker, Homeownership and Business Assistance Act of 2009", that extended and expanded the first-time homebuyer credit.  (Original Blog Post Here).

The law created an $8,000 tax credit available to first time buyers who are purchasing their primary residence, and a potential $6,500 tax credit for some existing homeowners who purchase another principal residence.

The IRS has issued some additional guidance regarding filing for the tax credit when homebuyers submit their 2009 tax return:

"Because of the documentation requirements for claiming the credit, taxpayers who claim the credit on their 2009 tax return must file a paper — not electronic — return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit" (Highlight ours)

For additional information on the documentation required when submitting a 2009 tax return, visit the IRS website here.

For an overview of information about the tax credit for first-time buyers, the Center has produced a fact sheet, here.

As we stated in November, first-time buyers should never base their home-buying decision on a tax credit. There are MANY other factors when deciding whether home ownership is right for YOU or not. Before purchasing YOUR first home... take a Home Stretch Workshop (pre-purchase education workshop) to learn what's involved, and speak with a non-profit Housing Counselor to see if you might qualify for any down-payment assistance or other first-time buyer programs.

What do I do if I've been scammed?

As homeowners continue to struggle with house payments… the Center and its network of non-profit Foreclosure Counselors continue to hear about homeowners who have paid companies (or "agents," / "brokers," / "representatives") to have their loan modified with no results.

While it seems as though the average fee is about $2,000 – $3,000, our counselors have encountered homeowners that have spent upwards of $12,000 (see our blog post here) all with little or no results.

For more information about avoiding these scams, the Center has produced a "Consumer Alert" fact sheet that you can view here. Bottom line: no struggling homeowner should have to pay to get help with their mortgage. It’s really that simple.

If you, or someone you know, has become a victim of a loan modification scam, there are a few steps that we encourages you to take:

1. Speak with one of Minnesota’s non-profit Foreclosure Counselors. They will be able to assess your situation and offer you the kind of help and assistance that the ‘fee-for-service’ organization promised, but couldn’t/didn’t deliver.
   
2. Gather as much supporting documentation as possible – name of company and agent/representative you spoke with, company address, details about when you talked to them, and especially: copies of anything you agreed to in writing, receipts of payment (cancelled checks, for example), etc.
   
   After reviewing your situation and documentation, your Foreclosure Prevention Counselor may decide to refer you to non-profit legal assistance teams for review.  Please note: there have been limited successes to date, especially due to the fact that many of these organizations are located outside of the state of Minnesota. Our legal partners have found that the company or its agents never reply to demands for repayment - they suspect they just sets up shop under another name. However, if the company is local and as homeowner you are willing to pursue further action, they may be able to do more, including actions with the MN Attorney General’s Office and even suing the organization or agent.
   
   
3. File a complaint with the Minnesota Attorney General’s Office. Minnesota’s "Foreclosure Consultant law" was updated last year to include loan modification services, and that law prohibits charging an up-front fee before services are performed. The AG is a central office for compiling complaints and has the most power to act. The AG has a complaint form on their website here.
   
4. Use the Minnesota Department of Commerce website to look up whether a company is licensed for mortgage loan origination (Follow the "License Look Up Tool" link on the right-hand side of this page). By law, companies that provide mortgage modification services must be licensed by the state and often times are not. If they are not licensed, the Commerce Department may be able to fine the company and force them to get licensed.

Remember: there is NO NEED to pay for foreclosure-prevention services in Minnesota. There is NOTHING a fee-for-service company can do that our network of Foreclosure Counselors can’t. And more often than not… these fee-for-service companies are SCAMS. Be careful out there!

Why is it so hard to get an effective loan modification?

The Minnesota Home Ownership Center, and it's network of Foreclosure Prevention Counselors, hears from clients on a daily basis about the difficulties they are facing when working with their bank... that many times a loan modification doesn't 'modify' the loan enough to be affordable in the long term. 

There is a lot that goes on "behind-the-scenes" before a bank is able to modify anyone's loan.  The Consumer Law and Policy Blog published an interesting article on Monday about the difficulties banks have when modifying loans when there is more than one lien holder (more than one loan) on the property.  The article, entitled "The Second Mortgage Problem - Banks Holding Out" is here.

Working with a bank to obtain a successful loan modification is not easy, but the Center's network of Foreclosure Prevention Counselors are VERY (VERY!) good at what they do.  If you, or someone you know is struggling with mortgage payments, and think that a loan modification may help... don't wait (and don't EVER pay for help).  The sooner you contact a counselor, the more options you have available.  To find your local non-profit, FREE Foreclosure Counselor, click here.  For additional information about avoiding foreclosure in Minnesota, click here.

New Scam Threatens MN Homeowners

David Kaplan of the Twin Cities Daily Planet, has written an excellent article highlighting a new scam that preys on struggling MN homeowners... especially homeowners in immigrant communities. 

The group ("Slavery to Sovereignty") claims to be able to stop foreclosure - while eliminating property taxes and even personal income taxes - by filing certain papers with the county - all for the exorbitant price of $12,500.   

THE INFORMATION THIS GROUP IS PROVIDING IS FALSE. 

For more information about foreclosure-prevention scams... the Center has produced a fact sheet here.

Here's a quote from the article that highlights the steps a homeowner should take before paying ANYONE for help to avoid a foreclosure:

"Rather than making a bad situation worse," Mr. Nelson said, "use the resources that are already freely available. On our website, we have a listing of all the non-profit organizations that work within our network in Minnesota, with services available in every county."

For more information about avoiding foreclosure - and the help available in Minnesota, click here.

The author, David Kaplan, is looking for homeowners that may have already begun working with this "Sovereign" group.  If you have... and would like to speak with the press, feel free to contact David here.

66,570 Pre-Foreclosure Notices Received in 2009!

Wow! The Center’s Foreclosure Prevention counseling network received over 66,500 Pre-Foreclosure Notices in 2009!!

When we look at the year-end numbers, we also notice that the trend of decreased notices that started back in October ended rather abruptly in December with an almost 6% increase in the number of notifications received.

Here are the January through December, 2009 STATEWIDE Pre-Foreclosure Numbers:

And here is what the full year (January through December) 2009 looked like in the Twin Cities Metro Area:

Remember, these numbers are self-reported by lenders/servicers or their attorneys. 

It will be interesting to see year-over-year comparisons as we enter into 2010!

¡EXITAZO! Evento Contra El Embargo (Foreclosure) En Minneapolis

Readers... don't panic... you're still at the MN Home Ownership Center's blog!  The Spanish headline is a response to the Center's "Borrower Workshop for the Latino Community" that was held at Plaza Verde in Minneapolis on Saturday January 9th.

'Exitazo' means HUGE SUCCESS... and the event was, indeed, a huge success:

• More than 160 people attended the event;
• Over a dozen foreclosure prevention counselors from local non-profit housing counseling agencies worked with homeowners to get their questions answered and start the counseling process
• Four lenders/servicers (Chase/JP Morgan; Freddie Mac; US Bank and Wells Fargo) assisted with outreach by mailing and calling consumers and sending loss mitigation staff to work with homeowners
• More than a dozen volunteers worked tirelessely to register homeowners and coordinate the event
• Mayor's from Minneapolis, St. Paul, Brooklyn Park, Brooklyn Center, Plymouth, Richfield and Bloomington assisted with outreach by signing letters inviting homeowners to the event.
• The event was highlighted in two Spanish-speaking newspapers and two radio stations.  Graciela Mendez from Neighborhood Development Alliance was interviewed on "La Invasora" during the event.

Here are a few pictures from the event:

For additional pictures, feel free to visit the photoset at the Center's FlickR album.  Did you take pictures of the event?  We'd love to add them to our album.  Contact Ed Nelson.

The Center's outreach to the Spanish-speaking community is not limited to large-scale events like the workshop at Plaza Verde.  The Center has a Spanish-Language website here, and is constantly working with its network partners to improve information sharing with the Latino Community.  A complete list of all of our handouts/fact sheets in Spanish is available here.

Bankruptcy and Foreclosure Fact Sheet Now Available

The Minnesota Home Ownership Center, working with our partners at the Volunteer Lawyers Network and the Housing Preservation Project, has just released a new Fact Sheet with answers to frequently asked questions about the issue of bankruptcy and foreclosure.

The fact sheet, available here, answers such questions as:

• What happens to my mortgage in bankruptcy?
• What happens if I file for Chapter 13 bankruptcy, and default on my mortgage payments?
• Can I convert a Chapter 7 bankruptcy to a Chapter 13?

These, and several other questions, are answered in the new fact sheet.

In addition... the Center is continuing to work on a fact sheet that answers questions about the complications that arise when homeowners declare bankruptcy but still need loan modifications.  Stay tuned!   

Did you know that the Center now has over a dozen Fact Sheets that can help struggling homeowners answer questions about their mortgage and foreclosure?  A complete list of Fact Sheets is here.

Home Stretch Network Continues to Grow!

Home Stretch is Minnesota's premier program for first-time homebuyers that simplifies the home buying process and prepares first-time home buyers for the important choices related to home ownership.

The MN Home Ownership Center is pleased to announce the following additions/expansions to the Home Stretch network:

• Three Rivers Community Action was added to the network through the HECAT process for the 2009-2010 year. Three Rivers Community Action serves Southwest and South Central Minnesota. They will be providing workshops and counseling with a focus on the Spanish-speaking community.

• Build Wealth Minnesota was also added to the network through the HECAT process. Build Wealth is a nonprofit working in North Minneapolis. They will be providing pre-purchase counseling.

• 1st Home Network was approved as a new provider through the an application submitted to the Center's Program Committee. 1st Home Network is a nonprofit working in St. Paul with an emphasis on serving African Americans. They will be providing Home Stretch workshops starting in January 2010.

• American Dream Services was approved to expand their Home Stretch workshops to the Northfield area starting in January 2010.

Interested in learning more about Home Stretch?  Click Here.

Thinking about buying your first home?  Think Home Stretch FIRST!!

Financial Help For Homeowners Displaced By Foreclosure

The Minnesota Home Ownership Center is pleased to announce a new pilot program that may assist families AFTER the foreclosure of their home with up to $2,500 to relocate and secure alternative housing.  Funding for this pilot program has been provided by the Saint Paul Foundation Community Economic Relief Fund.

For now, homeowners being displaced must have owned in Dakota, Ramsey or Washington Counties during this pilot program.  Depending on need, and availability of future funding, the program may be expanded.

Funds may be used for:

          • Moving expenses
          • Security deposits
          • Up to half of monthly rent for first three months
          • Utilities (gas, electric, water)


A fact sheet with additional program details and information, is available here.
 
 
Homeowners should contact the foreclosure counselors at the following organizations:

• Dakota County: Dakota County CDA
• Ramsey County: City of Saint Paul PED
• Washington County: Washington County HRA
• Spanish-Speaking homeowners (In the three counties): Neighborhood Development Alliance

Due to limited funding... these grants are available on a first-come, first-served basis.

Hundreds Turn Out For Foreclosure Prevention Workshop

On Saturday, December 5th, 2009... Hundreds of homeowners from Minnesota's SE Asian community came to South High School in Minneapolis seeking assistance in preventing foreclosure.

With the help of 14 non-profit foreclosure counselors from the Center's network of providers, more than a dozen additional volunteers, and several representatives from Wells Fargo Bank, more than 200 people were able to receive information about Minnesota's foreclosure process and begin working with a non-profit counselor to find a solution to THEIR mortgage issues.

The event was targeted to the Metro Area's SE Asian population, and the Center is pleased that families in those communities responded.  Of those people who expressed a language preference upon registration, here is the breakdown:

At registration, we also asked attendees to share with us their reason for coming to the workshop (the reason for their mortgage issue).  Of those who chose to respond, here is the breakdown:

Overwhelmingly... job loss or a reduction in income was the NUMBER 1 reason workshop attendees are struggling with their mortgages.

The Center will be holding a similar workshop for Minnesota's Latino (Spanish-speaking) population on the 9th of January (2010).  For more information on that workshop - or to volunteer to help, click Here.

Disappointingly... MANY of the workshop participants told counselors and volunteers that they have already begun working with (and paying for!) for-profit loan modification companies.  NO HOMEOWNER that is struggling with mortgage payments should have to PAY for help.  Non-profit Foreclosure Counseling is available FREE OF CHARGE to ALL Minnesota residents.  Be Careful.

Additional photos from the event are available on the Center's FlickR gallery... here.

Pre-Foreclosure Notices, October 2009

Interesting information in the October 2009 Pre-Foreclosure Counts!

The Center has compiled the Pre-Foreclosure Notice Counts for the Month of October, 2009... and some interesting information has arisen. Statewide, the number of Pre-Foreclosure Notices has DROPPED 11.6% from September to October.

HOWEVER... Pre-Foreclosure Notices have RISEN slightly in the Twin Cities Metro.

The trend lines continue to show an upward climb - and remember, these numbers are self-reported by lenders/servicers or their attorneys.

Here are the January through October, 2009 STATEWIDE Pre-Foreclosure Numbers:

And here are the January through October, 2009 TWIN CITIES METRO AREA Pre-Foreclosure Numbers:

This Saturday - Dec 5 - Workshop for Struggling Homeowners

SATURDAY DECEMBER 5th

9:00am - 1:00pm (Open House)

South High School

3131 19th Avenue South, Minneapolis

The Center is continuing its preparations for a large-scale workshop for struggling homeowners in the Twin Cities Metro area Asian community. More than 12 non-profit Foreclosure Counselors will be on hand and dozens of volunteers will be working diligently to assist homeowners that may not know where to turn for help. Representatives from Wells Fargo bank will also be participating to assist clients whose loans are serviced by Wells. (Dozens of other lenders have been invited and may also participate)

The Center has conducted a direct mailing of over 15,000 letters - many signed by local mayors from Minneapolis, St. Paul, Brooklyn Park, Brooklyn Center, Plymouth, Richfield and Bloomington to let consumers know about the event! The event has been highlighted in local Asian newspapers and on several radio programs.

At the event, homeowners will be able to hear a presentation about the foreclosure process in Minnesota and the kinds of help and assistance offered by the non-profit network of counselors, get information about how to contact a housing counselor that speaks their language and, if they'd like, even have a brief appointment with one of those housing counselors to get some of their questions answered directly.

English, Hmong, Vietnamese, Laotian, Chinese (both Cantonese and Mandarin) Korean, Khmer (Cambodian) Japanese and even Spanish-speaking counselors and volunteers will be present!

Do you speak a SE Asian language? Would you like to volunteer to make a difference to struggling families? Contact John Reynolds at the Center ASAP to volunteer. (There will be a training at the Center on Friday, December 4th, 9:00am for volunteers)

You can still help us spread the word! Please post the flyer or share with your friends/family/clients (they don't have to be Asian!). A copy of the flyer, with additional information about the event, is available here. For copies in Hmong or Chinese, visit our website here.

MN 3rd in the nation for MHA Trial Modifications

Many of our readers are numbers and data fans... so I thought I'd write a short post and link to some interesting reports that we've seen that give some numbers about housing, at both the national and state level, that our readers can dig into:

First, the Treasury has released its "Servicer Performance Report Through October 2009" for the Making Home Affordable Program. The complete report is available here.

That report shows that Minnesota ranks 17th in the nation for the overall number of Trial Modifications initiated under the Making Home Affordable program:

NOW... we've also seen the most recent negative equity report from American CoreLogic (via LoanPerformace.com) ... We'll be posting on the negative equity issue in a later blog post.

The interesting point, for THIS post, is that the American CoreLogic report shows the number of outstanding mortgages, by state. Minnesota ranks # 26th in the country for the number of outstanding mortgages:

IF WE COMBINE THE TWO NUMBERS...

This is where it gets interesting! If we look at the number of Trial Modifications initiated under the Making Home Affordable program AS A PERCENTAGE of ALL outstanding mortgages... Minnesota ranks 3rd in the country!!

Any numbers/data people want to weigh-in on my math skills? (Although trained as an economist... I'm a marketing guy... not a researcher/analyst/numbers guy :) )


As they stand, these numbers speak volumes of the work that our Foreclosure Counseling network does to assist struggling homeowners... and to get the word out about programs and assistance available to Minnesota homeowners! If you're struggling with your mortgage payment, or would like more information about the Making Home Affordable program... visit the Minnesota Home Ownership Center's website here.

Foreclosure Prevention Counseling Works

"Counseling Helps Borrowers Avoid Foreclosure"... that's the headline from the Washington Post yesterday, reporting on a new study conducted by the Urban Institute of Washington D.C.

The study has found that borrowers who sought out counseling, even though they were already seriously delinquent on their mortgages, were SIXTY PERCENT MORE LIKELY to avoid foreclosure after meeting with a counselor than those who don't.

In addition... those clients that worked with a non-profit housing counselor, and received a loan modification from their lender, had their payments reduced... on average $454.00 MORE than those homeowners that received a loan modification without the assistance of a counselor.

None of this surprises us here at the MN Home Ownership Center. The Center's Executive Director, Julie Gugin says:

We've known through our extensive work with foreclosure prevention that personalized counseling is the most cost-effective way to address the mortgage crisis. This report underscores the work of dedicated non-profit counselors throughout the country.

If you, or someone you know, is struggling with to keep up with their mortgage payments, or is worried about a FUTURE payment... don't delay contact a Housing Counselor that specializes in foreclosure today! To contact your local Counselor, click here.