Prebil and Murphy Show - Case Shiller Numbers

On Wednesday Morning, Ed Nelson from the MN Home Ownership Center was invited to join Shawn Prebil and Chris Murphy on the Prebil & Murphy Show on am1500 KSTP to discuss the rather startling Case-Shiller Numbers that were released on Monday.

A podcast of the 10:00 hour of the show is available on the KSTP website here (May only be available for a limited time). An MP3 is hosted on the Center's website as well, here. (It's a large file, so it may take some time to open).

SO... what DOES explain the Case-Shiller numbers? Here are some personal thoughts - take them with a BIG grain of salt:

1. Are investors jumping into the MSP market - and buying up the lowest priced homes to rehab/rent?
2. Are the number and availability of first-time buyer and down-payment assistance programs that have been announced by local cities, towns, lenders etc... causing the number of lower priced (generally the first-time market) homes to be sold at greater rates - dragging down the overall index?
3. Are banks discounting their foreclosure and REO properties to get them off their books - again dragging down the index?

Any other suggestions? Feel free to add your thoughts in the comments.

Personal Deficiency Judgments After a Foreclosure in Minnesota

Many homeowners that are facing foreclosure assume that the Sheriff's sale is the end of the process... that after the house is sold, their personal financial responsibility for the house and any payments are done.

THIS MAY NOT BE TRUE!

In Minnesota - if a house is sold at the Sheriff's sale - and the sale price isn't enough to cover all debt against the property - there may be PERSONAL financial responsibilities for the homeowner(s).

There are specific situations in MN where lien holders can seek a personal deficiency judgment, - in plain English: sue a consumer - for unpaid debt after a foreclosure.

The Housing Preservation Project, in cooperation with the Minnesota Home Ownership Center, and the Volunteer Lawyers Network, has put together a fact sheet that outlines what can happen in Minnesota if the Sheriff's sale price doesn’t cover all outstanding debt against the property.

The fact sheet covers the different types of foreclosure - including the difference between a foreclosure by advertisement and a foreclosure by action - and its effect on judgments. In addition, the fact sheet explains what can happen with second, and other junior, lien holders.

The fact sheet can be downloaded here.

Consumers that are having difficulty making their house payment should seek the services of a certified non-profit (FREE, Non-Biased) foreclosure prevention specialist to understand their options and responsibilities during a foreclosure. For a complete list of foreclosure prevention specialists, click here.

Renter's Rights in Foreclosure

The Minnesota Home Ownership Center is actively involved in all aspects of Foreclosure Prevention and Foreclosure recovery in Minnesota.

As we've mentioned before (here and here) some of the people hardest hit by foreclosure in Minnesota are TENANTS / RENTERS who find themselves in a situation that is out of their control.

Minnesota has been on the forefront of defending and improving tenant’s rights in a foreclosure.

Larry McDonough, Managing Attorney for the Housing Unit of the Legal Aid Society of Minneapolis has had an article published in the March-April “Clearinghouse Review” (Journal of Poverty Law and Policy – Volume 42) that carefully outlines the work that has been done in Minnesota. (Subscription required to view article). For additional information about the article, contact Larry McDonough at Legal aid.

If you are a TENANT and your LANDLORD is facing foreclosure… there are helps and assistance available to you. For more information, click here.

The Center Earns Charities Review Council "Meets All Standards" Seal

The Minnesota Home Ownership Center is proud to announce that it has been awarded the Charities Review Council “Meets All Standards” Seal indicating that it meets all sixteen of the Council’s Accountability Standards!

The Charities Review Council evaluates nonprofit organizations in Minnesota in four critical areas:

• Public Disclosure
• Governance
• Financial Activity, and
• Fundraising.

By participating in the evaluation/review, nonprofit organizations, like the Center, can demonstrate responsibility, integrity and transparency to their constituents, funders and partners.

The Center is pleased to be listed as a reviewed organization on the online Giving Guide of the Council’s Smart Givers Network, www.smartgivers.org and the Council’s Smart Giver newsletter distributed to more than 18,000 subscribers in Minnesota.

A detailed report on the Center's activities and the results of the Charities Review Council's Accountability Review can be found here: http://www.smartgivers.org/SmartGiversReview/411741817.html

We've added the "Meets All Standards" seal to the sidebar of the blog, which links to the Center's results page on the SmartGivers website.

UPDATE: Interested in financially supporting the Center? Visit our donation page here.

Safe at Home Documentary - Airs Sunday Night!

Safe at Home: Preveventing Foreclosure, gives an overview of the foreclosure prevention efforts of the Statewide Counseling Network of foreclosure prevention specialists. It explains the current mortgage crisis in Minnesota and, more importantly, explains the efforts that are underway to assist consumers and rebuild neighborhoods.

The program comes to life with the contributions of two brave home owners who were willing to share their personal stories so that Minnesotans watching could learn about the real warning signs of falling behind – and the benefits of counseling.


This documentary airs for the first time Sunday Night, May 17th at 7:00pm on TPT's Minnesota (MN) channel.


Here's a list of providers that broadcast the TPT Minnesota Channel, and the channel number:

For more information, visit the Center's website, here: http://www.hocmn.org/safeathome.cfm

HECAT RFP Technical Assistance Sessions

The Minnesota Home Ownership Center is pleased to announce that it has scheduled three technical assistance sessions for non-profit organizations that are thinking submitting an application for funding from the 2009/10 Homeowner Education Counseling and Training Fund (HECAT).

Each session is two hours long, and includes a review of the HECAT program concept and goals, selection criteria and application requirements.

All organizations that are thinking of appying for HECAT funds are encouraged to attend one of the sessions.

For more information, and to register, visit the Center's website here.

HopeNow Borrower Workshop - Resource Listing

As we've stated in other blog posts, the Center is proud to participate with the Minneapolis Federal Reserve Bank (Fed), NeighborWorks America & the HopeNow alliance to co-host a foreclosure prevention workshop in St. Paul.

As a reminder, the workshop will be held at the RiverCentre in St. Paul on June 4th.

In addition to the 'standard' resources available at a HopeNow event... where homeowners who are either falling behind, or in danger of falling behind, on the mortgage can speak one-on-one with their servicer or lender - AND - speak with a non-profit housing counselor, the St. Paul event goes one step further.

At the event, while homeowners are waiting to speak with a counselor or their servicer, they will be able to visit a resource fair as well. Resource providers include agencies and organizations that can assist distressed homeowners with repair/rehab issues, energy assistance, taxpayer services, employment assistance, food assistance and many others.

For a complete list of resources, visit the HopeNow Event page of the Center's website here.

The page also lists additional information about the workshop... including a list of non-profit counseling agencies that will be participating. A list of all lenders and servicers will be included as soon as it becomes available.

Safe at Home: Preventing Foreclosure

The Minnesota Home Ownership Center, in partnership with Twin Cities Public Television (TPT) and PRG, Inc. has produced a documentary entitled: "Safe at Home: Preventing Foreclosure"

Safe at Home: Preveventing Foreclosure, gives an overview of the Foreclosure Prevention efforts of the Statewide Counseling Network of foreclosure prevention specialists. It explains the current mortgage crisis in Minnesota and, more importantly, explains the efforts that are underway to assist consumers and rebuild neighborhoods.

The program comes to life with the contributions of two brave home owners who were willing to share their personal stories so that Minnesotans watching could learn about the real warning signs of falling behind – and the benefits of counseling.

The documentary begins airing on Sunday, May 17th at 7:00pm on the Minnesota Channel.

For additional information, click here.

151 Radio Stations!

The radio actuality (similar to an audio/radio format press release) that the MN Home Ownership Center produced about the release of its 2008 Foreclosure Prevention Counseling Program Report was picked up by 151 radio stations throughout the state!

That is, without a doubt, a record for the Center!

If anyone was able to record any audio from any of the newscasts throughout the state... we'd love to hear them! You can send them to Ed Nelson here at the Center: ed@hocmn.org

You can listen to the Radio Actuality, HERE.

The entire 2008 report - and lots of other supplemental information - is available on the Center's website, HERE.

MPR Interview with Mark Ireland

Minnesota Public Radio ran a story on Wednesday, April 29th entitled "Why foreclosure help isn't working". While the title is a little unfortunate, we're pleased that local attorney Mark Ireland, with the Foreclosure Relief Law Project, highlighted (repeatedly) the need for struggling homeowners to work with a trained, qualified foreclosure specialist - like those counselors in the MN Home Ownership Center's network.

You can read more about the conversation and listen to the program, here.

If you are having difficulty with your mortgage payment, don't delay, contact a foreclosure specialist TODAY.

Julie Gugin, Center's Executive Director, on TV

Julie Gugin, Executive Director of the Minnesota Home Ownership Center, was invited to join Minneapolis Mayor R.T. Rybak on the "Meet the Mayor" TV program.
It broadcast for the first time today, Wednesday April 29th, at 11:00am on Minneapolis Cable Channel 14 and will rebroadcast for the next several weeks on Tuesdays and Saturdays at 8:00pm; and on Sundays and Wednesdays at 11:00am.

For those who live outside of the City of Minneapolis, the show is also available online:
http://shows.implex.tv/Qwikcast/Root/minneapolis/2056/preflight.htm?AutoLoginComplete=1

Taped on location in Minneapolis' Willard Hay neighborhood, Mayor Rybak discusses Minneapolis initiatives to prevent foreclosures, reinvestment in neighborhoods and other foreclosure- and recovery-related issues with Julie Gugin & Tom Streitz, City of Minneapolis Housing Policy and Development Director, among others.

Star Tribune Highlights 2008 Foreclosure Report

In addition to the weekend Editorial we blogged about here... Today's Star Tribune highlights information from the Center's 2008 Foreclosure Counsling Program Report - on the front page of the business section!

The focus of the Strib article - and one of the findings of the Report, is the fact that the foreclosure crisis has moved beyond the first wave (very low-moderate income buyers, sub-prime and even predatory loan products, overbought homes) to the next wave of prime mortgage holders, suburban homeowners and others.

We'll be adding additional posts about the Report throughout the coming days - highlighting additional findings of the report - there is a LOT of great information about the face of foreclosure in Minnesota.

You can read the Star Tribune article here.

You can access the report, and other supplemental documents, here.

Start Tribune Editorial: Foreclosure Counseling is Cost Effective

The Minnesota Home Ownership Center was proud to be the focus of this weekend's Editorial in the Star Tribune!

The Editorial, based on information included in the 2008 Foreclosure Counseling Program Report that will be available on the Center's website on Wednesday April 29th, highlights "Success Stories in the Housing Meltdown" as well as the cost effectiveness of foreclosure counseling.

As we've noted on the blog before, the Center's network served over 11,000 Minnesota Households last year... and was able to assist those families in avoiding foreclosure 55% of the time!

Foreclosure Conseling costs, on average, of about $500.00 per household. Those $500.00 invested per family was able to save the State of Minnesota, local municipalities, lenders, communities and, most importantly, Minnesota Families approximately $300,000,000.00!! Yes - you read that right - 300 hundred million dollars.

You can read the Star Tribune Editorial here.

As soon as the report is released, it will be available on the Center's website!

Making Home Affordable - First Servicer Participants Announced

While the White House announced in early March the basic outline of the "Making Home Affordable" plan, many homeowners have been frustrated by the fact that, while it appeared as though they would qualify for either the modification or refinance versions of the plan, few lenders/servicers had actually formalized their participation in the plan.

As of Thursday, April 16th... that has changed. Six national servicers, including several with substantial loan portfolios in Minnesota, have formalized their participation and now have procedures in place to accept homeowner inqueries.

Those servicers are: Chase, CitiMortgage, GMAC Mortgage, Saxon, Select Portfolio Servicing, and Wells Fargo Bank.

SO... what should consumers do next? The first step would be to visit the Center's website for a detailed overview of the Making Home Affordable Plan. You can view the information, HERE.

Next, visit the government's official website for the plan: http://www.makinghomeaffordable.gov/ (Don't be fooled by look-alike or scam websites! This is THE governmental website for all Making Home Affordable information).

Follow the steps to see if you are eligible (Click on the large "Find Out If You Are Eligible" button on the Making Home Affordable website).

If it appears you qualify... AND your servicer (where you mail your monthly mortgage checks) is listed above, visit the Making Home Affordable page for contact information for your servicer, HERE.

If you'd like additional information about contacting your lender or servicer, the Center has a fact sheet available HERE:

IF YOUR SERVICER IS NOT LISTED, or if it appears as though you aren't eligible. DON'T PANIC. Many servicers are accepting applications even though they haven't signed the official participation contract with the government. Moreover, the Making Home Affordable plan may be just ONE of the MANY options you have for staying (or getting) current on your mortgage! A FREE, local Foreclosure Counselor can assist you in understanding YOUR options. Don't delay, contact them today! (Link is HERE).

Telephone Seminar - Tuesday Night, April 14th

The Center is excited about tonight's (Tuesday, April 14th) telephone seminar. Working in partnership with the City of Brooklyn Park, we were able to mail INVITATIONS to 10,000 Brooklyn Park residents, signed by Mayor Steve Lampi, to join us on the call!

THE CALL FREE AND OPEN TO ANY HOMEOWNER IN MINNESOTA - Even if you don't live in Brooklyn Park... JOIN US!

Do you think you should join us on our FREE - CONFIDENTIAL telephone seminar?

Here are some questions to ask yourself:

• At the end of the month, do you find yourself struggling to get ahead, or even keep up?
• Are you questioning the future because you worry about how you will make ends meet today?
• Are you concerned that if the real estate market doesn't improve soon, your current mortgage and home may not be a good fit for you?

If you answered "Yes" to any of these questions, the Minnesota Home Ownership Center would like to invite you to join tonight's free, confidential telephone seminar - TONIGHT from 7 - 8pm.

Feel free to join in for as long as you like.

Toll Free: (877) 850 - 7042

We'll discuss the current foreclosure situation in Minnesota, resources that are available to homeowners from their lender/servicer and from the statewide network of Foreclosure Specialists.

Have questions? You can join in too... and ask questions of our Foreclosure Specialists from the comfort - and confidentiality - of your home!

Loan Modification Success Rate

If you have some time to kill... feel free to read through the page-turner known as the:

"Office of the Comptroller of the Currency and Office of Thrift Supervision Mortgage Metrics Report, Disclosure of National Bank and Federal Thrift Mortgage Loan Data". (Full document here).

Assuming you won't actually read the whole document :-), allow us to highlight some of the findings for you:

1. In 2008, only 41.85 percent of all modifications reduced monthly principal and interest payments for homeowners. For delinquent borrowers - - a loan modification resulted in an INCREASED or EQUAL payment amount 58.15% of the time!!
2. If a loan modification resulted in NO CHANGE in principal and interest payments, that generally resulted in the homeowner re-defaulting 50.6% of the time after 6 months.
3. If a loan modification resulted in an INCREASE in monthly principal and interest payments, that generally resulted in the homeowner re-defaulting 45.8% of the time after a period of six months. (Yes... it's interesting that an INCREASED payment has a lower re-default rate than a loan mod with no change in payment amount).
4. HOWEVER, if a loan modification resulted in a reduced payment of 10% or more, the re-default rate shrank to just 22.7%. (77.3% success rate).

The national press jumped on the news a few weeks ago about the re-default rate of loan modifications (Here and Here, for example)... as 'proof' that foreclosure mitigation strategies don't work. What they DIDN'T mention is that NOT all loan modifications are equal - - some even INCREASED homeowners payments!

If you've thought about seeking a loan modification with your lender, or have already received an offer to modify the loan from them... you want to be EXTREMELY careful that the modification they're offering you is really in your LONG-TERM best interest. The Center's network of Foreclosure Counselors are ready, willing and able to take a look at the suggested modification, and help you decide if it will work for you.

ALSO... we couldn't post about loan modifications with warning Minnesota Home Owners AGAIN, to make sure that they do not PAY for any third-party loan modification service. Deal directly with your lender yourself, or with one of our free, non-profit Foreclosure Counselors. For additional warnings about for-profit loan modification companies (and scams)... visit here and here.

Hope Now Information Session - Deadline April 8

This is just a reminder that the deadline to register for the information session at the Federal Reserve Bank for the upcoming HOPE NOW Workshop is Wednesday, April 8th, 2009.

The information session will be held on Monday April 13th.

Topics include:

• Additional information about the upcoming HOPE NOW Workshop at the St. Paul RiverCentre on June 4th
• Information about the foreclosure crisis in Minnesota
• Strategies to ensure that the workshop meets the needs of YOUR clients
• Strategies to best reach YOUR clients/constituents

Remember, space is limited and registration is required. If you would like to attend the Informational Meeting on April 13, or would like to request additional information about the meeting, contact:

Jackie Gausvik at (612) 204-5869 or
jacqueline.gausvik@mpls.frb.org by April 8.

Video Question #2 - Sheriff's Sale & Move-Out Date

The SECOND in our VIDEO QUESTION Series:

Today's question comes from Rebecca in Cottage Grove:

My Sheriff’s sale is taking place next week. A representative from the bank says that I have to vacate the property on that day… but I saw on your website that I have additional time to find somewhere else to live. Do I have to move next week? Do I have additional time, and if I do, how much time do I have?

Our answer via video, is here:

(Video Link)

Finance & Commerce Article - Mediation?

The Center's Executive Director, Julie Gugin was quoted in an article about a new program being debated by Minnesota lawmakers: require lenders to participate in a mediation session with homeowners before proceeding with foreclosure. As currently outlined, the program would be administered by the Attorney General's office.

Here are some of the highlights of the article:

Mike Thompson has a simple message for Minnesota lawmakers touting the idea of mediation between troubled homeowners and their lenders: buckle up

... mediation isn’t a panacea for every struggling homeowner.

and

“We do exactly what Michael Thompson and his group do,” said Julie Gugin, executive director of the Minnesota Home Ownership Center. “I think the remaining challenge that many of us who are working in this field are facing is, ‘What is the best way to get lenders to the table in an efficient way that gets decisions made quicker?’ I don’t believe we’ve landed on an answer to that question yet,” Gugin said.

The entire article is HERE.

As the article states, the Center does not have a position for or against the proposal... but homeowners that are struggling with payments should NOT WAIT. The Center's network of Foreclosure Prevention Specialists can help TODAY.

Word Cloud of The Center's Blog

Here's a fun 'Word Cloud' that I put together using the 50 blog posts we've published here at the Center.

A Word Cloud, according to Google's definition is:

Graphical representation of word frequency. Presents a picture of the most common words used with those used more often displayed larger.

Here's what this blog looks like in a word cloud:

(Click on the image to enlarge)

It will be interesting to see how the "cloud" develops over the coming months!

Cloud created using wordle.net online generator.

Mobile Blog Site - Up and Running!

The Center has optimized its blog for mobile users!

Visit: http://hocminn.mofuse.mobi/

You can also send the link directly to your mobile device using the ‘Send Our Mobile Site to Your Phone’ widget in the sidebar on the right.

This is one more way the Center is trying to get as much information about SUCCESSFUL home ownership to as many people as possible!

FTC Shuts Down Scam Loan Modification Companies

The Minnesota Home Ownership Center has warned - and will continue to warn - Minnesota consumers about the number of for-profit loan modification companies that are beginning to make their appearance in Minnesota.

NOW, we've received notice that the Federal Trade Commission (FTC) has shut down a number of Loan Modification Companies that were taking advantage of homeowners throughout the country, by falsely claiming to be a part of the HOPE NOW Alliance.

The complete story can be found at the FTC's website, here.

THESE ARE ONLY A FEW OF THE DANGEROUS ORGANIZATIONS LOOKING TO SEPERATE HOMEOWNERS FROM THEIR HARD-EARNED MONEY.

The Minnesota Department of Commerce requires that anyone who engages in the work of loan modifications... attorneys, loan officers, lenders or private individuals... have a residential mortgage originator license pursuant to Minnesota Statutes Chapter 58.

According to the state of Minnesota... individuals offering or negotiating loan modifications are indirectly acting as mortgage originators. Additional information can be found here.

SO… if ANYONE offers to assist you with a loan modification, PLEASE check their license status with the MN Attorney General’s office FIRST.

BUT, WHY PAY FOR SOMETHING, when BETTER services are available free of charge? If you think a loan modification may help keep you in your home, please contact one of our FREE non-profit foreclosure prevention specialists for help.

Partnership With Minnesota Credit Union Network

The Minnesota Home Ownership Center is proud to announce that it is teaming up with the Minnesota Credit Union Network to provide credit unions access to a certified network of foreclosure counselors to help struggling members.

We here at the Center have gone on record as stating that the vast majority of Local Credit Unions and Minnesota-based regional banks were NOT part of the causes of our current foreclosure crisis in Minnesota... but we are EXTREMELY pleased to have these local contacts be a part of the solution!

Here's a brief snippet of the press release:

“Since credit unions are not-for-profit and have a true concern for their members’ financial well being, this relationship with the Home Ownership Center can enhance credit unions’ existing efforts and can be a win-win for all parties involved,” said Mark D. Cummins, MnCUN President & CEO. “Oftentimes consumers at risk of foreclosure are scared or embarrassed of their situation. By publicizing this counseling network to their members, credit unions can position themselves – yet again – as a go-to resource for their members.”

The entire press-release is available here.

This relationship goes beyond just a simple referral. The MN Credit Union Network is working to prepare newsletter inserts for member Credit Unions to use in their newsletters and websites, and will make marketing materials, including print and web-ready pieces, available to those who are interested.

In addition... a member of the Communications department from the MNCUN will be joining the Minnesota Home Ownership Center's Board-Level Marketing Committee to assist us in our outreach efforts to Minnesotans!

The Center is excited about this new relationship!

If you'd like to learn more about how your organization or company can partner with the Minnesota Home Ownership Center, contact Ed Nelson for more details.

Workshop at Brooklyn Park City Hall - Tonight!

In partnership with Hennepin County, Hennepin County Libraries and the City of Brooklyn Park, the Center is offering workshop tonight at Brooklyn Park City Hall.

At tonight's workshop, homeowners and renters, can learn about the foreclosure process, what kinds of helps and assistance are available in Minnesota and meet with Non-profit Foreclosure Specialists, representatives from Hennepin County Taxpayer Services, and attorneys specializing in Renter Advocacy. In addition, attendees will be able to set up an appointment for a more personalized, in-depth discussion at a later time.

Additional information, from the City of Brooklyn Park's website is here: http://bit.ly/4h4L9t

The workshop will be held at City Hall:
5200 85th Ave. N.
Brooklyn Park, MN 55443

From 6:30pm - 8:00pm

One lonely household: helped by Hope for Homeowners

Three Dog Night once sang that "one is the loneliest number"... and in the case of the much-hyped Hope for Homeowners act of 2008... it really is the truth.

According to Brian Sullivan, a spokesman for the Federal Housing Authority, the program has only received 752 applications, of which only 1 mortgage was able to be insured. ONE.

Here's the CNN article that carried the story: http://money.cnn.com/2009/03/25/real_estate/new_hope_plan/index.htm


One fear we have when homeowners hear that a much-hyped program like Home For Homeowners is less-than-successful, is that they instantly assume that NO program can help them in their situation. THIS IS NOT TRUE.

The real message for any Minnesota family that is struggling to make mortgage payments is this: Don't wait for a magic bullet from Washington to help!

If you're having difficulty with your house payment... or think you may have difficulty soon, There are already professionals available in Minnesota to assist YOU. If you'd like to speak with a Foreclosure Prevention Specialist, click here.