Foreclosure Prevention Counseling in Minnesota

The Minnesota Homeownership Center has released its Foreclosure Counseling report for 2012.  

This report provides a summary of findings from an evaluation of the foreclosure prevention counseling program provided by the Center's Homeownership Advisors Network. 

In Minnesota, local, free foreclosure counseling services are provided to ANY homeowner through a network of about 25 different non-profits, governmental, tribal and social service agencies throughout the state.

The report summarizes household and loan characteristics, service usage, and outcomes for homeowners receiving foreclosure counseling during the past twelve months. 

The complete report is available online at the Center's website, here.


Here are a few highlights from the report:

5,947 households received foreclosure counseling services in 2012, 

a decrease of 41% from 2011.  

47% of households receiving counseling services in 2012 

were able to avoid foreclosure.  

3 out of 5 households had mortgage payments that 

were more than 30% of their income 

(the traditional benchmark of mortgage affordability).

More than half of households served fell behind in their mortgage 

due to a loss or reduction in income.

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 Homeownership Advisor that specializes in foreclosure today!  To learn more, or to contact your local organization, click here.

New Online Ad Campaign for Foreclosure Prevention

Screenshot of ad.  Actual ad
rotates through 4 panels 

The Minnesota Homeownership Center has launched a new online advertising campaign to reach struggling homeowners and get them connected to the Homeownership Advisors Network where they can get the foreclosure prevention services they need.

 

OUR STRATEGY:   This week, the Center  will begin an integrated digital (online) advertising program to reach struggling Minnesota homeowners through: 

• Search Engine Marketing (SEM) (Highlighted ads that appear on Google, Bing, Yahoo! and other search engines when consumers search for specific topics). 
• Online banner advertising through the Yahoo! Advertising and the AdTaxi networks.  

Online banner and SEM advertising allows us to limit production expenses and get the ad seen by as many targeted households as possible.  When all is said and done, the ads will have been posted over 4 MILLION times.

 

OUR TARGET:   Online data and web usage tracking allow us to target struggling homeowners that meet specific demographic profiles.  We’ll be focusing on these homeowners in:   

• the 7-County Metro area (Hennepin, Ramsey, Carver, Scott, Dakota, Washington Anoka)
• Isanti, Pine, Sherburne, Chisago, Mille Lacs and Kanabec Counties;
• The cities of St. Cloud, Duluth, Rochester, Mankato and their surrounding communities. 

By targeting these areas we are reaching the hardest-hit areas of the state as well as close to 75% of the statewide population.

 

OUR TIMELINE:   The banner and SEM ads will begin the week of July 9th and are scheduled to run through early 2013.   

 

WE'RE BEING PROACTIVE:  The Center feels strongly that we can't wait for homeowners in trouble to come to us.  We have to proactively reach out to them to let them know help is available.  That's what this campaign is all about.  It's a no-nonsense message -- we're an effective, free, non-profit way for any Minnesotan to access foreclosure prevention services.

 

WE'RE BEING EFFICIENT:  We chose an online campaign to reach people in the most efficient way possible, and to ensure we could have the conversation with homeowners at a time when they are just one click away from getting help.  

 

WE'RE FOCUSED ON OUTCOMES:  We didn't want a feel-good campaign.  We want MN homeowners to get help, and we'll be monitoring the campaign's web analytics in real time to see how we're doing.  If search terminology or ad placement isn’t working, we'll adjust.  We are hopeful this approach will prove to be both an efficient and effective way to connect homeowners to foreclosure prevention services, and we'll be carefully measuring against that outcome.

 

PREVIEW THE ADS.  Unless you fit the targeted demographic and geographic profile we’ve identified, you may not see our ads much, or even at all.  We have, however, uploaded preview versions of the ads to our website here: http://hocmn.org/en/bannerpage.cfm

 

YOU CAN HELP!  

We can send you these ads electronically so you can email them to others, put one on your website or ask that your municipality, local social service organization or other partners post it.  The more broadly the ad is seen, the more likely homeowners will get the help they need!

Postcard: Independent Foreclosure Review

Did you receive a postcard about the Independent Foreclosure Review?


The Minnesota Homeownership Center and members of the Homeownership Advisors Network have participated in a mailing to thousands of Minnesota families that may have been involved in a foreclosure or tried to work on a loan modification in 2009 or 2010, to let them know that they may be eligible for financial compensation or another remedy.


Here's a copy of the postcards that have been mailed:

Front of Postcard - Click to Enlarge

Back of Postcard - Click to Enlarge

While the Center doesn't have exact numbers... we do know that homeowners, or former homeowners, requesting a formal review of their bank's foreclosure procedures have been far less than the regulators anticipated.  In a nutshell: families that may be eligible for some sort of payment may be leaving money on the table.


WHAT IS THE INDEPENDENT FORECLOSURE REVIEW (IFR)?
Federal banking regulators (the Office of the Comptroller of the Currency, simply known as the OCC, the Office of Thrift Supervision and the Board of Governors of the Federal Reserve System have created a process by which homeowners may request an independent review of their foreclosure process if they meet two major criteria:

1. They were part of a foreclosure action on their primary residence any time from January 1, 2009 to December 31, 2010;
2. Their loan was serviced by one of the 14 participating mortgage servicers.  (See list below).

If the review finds that financial injury occurred because of the servicer’s errors, misrepresentations or other deficiencies in the foreclosure process, the customer may receive compensation or other remedy.

NOTE:  "Foreclosure Action" can mean anything from receiving a notice of intent to foreclose (even if your payments were brought up to date) all the way through having lost the home at a foreclosure or Sheriff's sale.  Even homeowners whose loan entered any point of the foreclosure process in 2009 or 2010... and are still delinquent, but the Sheriff's sale has not yet taken place, are eligible.

IS IFR A SCAM?
NO.  However it is important to remember that NO ONE should charge you a fee to help 'facilitate' or 'improve your odds' of receiving compensation.  NEVER PAY FOR HELP.


I'VE ALREADY FILED A COMPLAINT WITH MY LENDER... IS THAT ENOUGH?
No.  Your bank or servicer may have their own internal review process.  However, if your mortgage loan meets the initial eligibility criteria, you should submit a Request for Review Form to ensure your foreclosure action is included in the Independent Foreclosure Review process.


WHAT BANKS/SERVICERS ARE PARTICIPATING?
Your mortgage must have been serviced by one of the 14 participating mortgage lenders/servicers or their affiliates:

• America’s Servicing Co.
• Aurora Loan Services
• BAC Home Loans Servicing
• Bank of America
• Beneficial
• Chase
• Citibank
• CitiFinancial
• CitiMortgage
• Countrywide
• EMC
• EverBank/EverHome
• Mortgage Company
• Financial Freedom
• GMAC Mortgage
• HFC
• HSBC
• IndyMac Mortgage Services
• MetLife Bank
• National City Mortgage
• PNC Mortgage
• Sovereign Bank
• SunTrust Mortgage
• U.S. Bank
• Wachovia Mortgage
• Washington Mutual (WaMu)
• Wells Fargo Bank, N.A.
• Wilshire Credit Corporation

I'M INTERESTED IN LEARNING MORE... WHAT DO I DO?


Step One:  Call the Minnesota Homeownership Center: 651-659-9336
or Toll Free: 866-462-6466 with any questions.


Step Two:  Visit the Independent Foreclosure Review website:

   www.IndependentForeclosureReview.com


As always... if you're struggling with your mortgage - or know someone who is - the Minnesota Homeownership Center serves as a FREE resource to Minnesota homeowners.  Call us today with questions about the Independent Foreclosure Review... or other programs, resources and assistance available to prevent foreclosure, TODAY. 

New Foreclosure Prevention Assistance Program - EHLP

Homeowners facing foreclosure due to involuntary unemployment, underemployment or medical issues are eligible to benefit from a new federal program: the Emergency Homeowners' Loan Program (EHLP).

The program is only accepting applications between July 5 & July 22. Under this program, more than 1,400 selected Minnesota homeowners will receive up to $50,000 in interest-free loans over the next two years to help pay mortgage costs. The loans are also 100% forgivable for homeowners who stay in their home for 5 years following the program's completion.

Homeowners eligible to apply for the federal program must meet several criteria, including:

• Have faced an income decline of at least 15% due to involuntary unemployment, underemployment or medical issues
• Have been unable to make their mortgage payment for at least 3 months prior to June 1, 2011
• Reside in the mortgaged property

Unemployed or underemployed homeowners should visit the program's Minnesota website at www.EHLPMinnesota.com  to learn more about the program, verify eligibility and download a pre-application.

Remember: The deadline to apply for this one-of-a-kind program is 4:30p.m. on Friday, July 22.

Homeowners are also being warned to steer clear of scams.  There is no charge to apply for EHLP and checking eligibility and filling out the pre-application is simple.  An offer to help fill out EHLP forms for a fee or anyone who guarantees that a pre-application will result in acceptance in the program in exchange for money is a scam. 



Visit www.EHLPMinnesota.com for more information.


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CALL TO ACTION:  Help Us Spread The Word!

If you know of unemployed/underemployed homeowners who are struggling with mortgage payments, we ask that you spread the word to them about this unique, and short-lived, opportunity.

Below you will find additional tools that you can use to help spread the word (Links to documents):

• Fact Sheet for Professionals - Understanding EHLP (PDF)
• A handout for consumers (PDF)
• Email text that you can customize to your constituents/clients (MS Word)
• Electronic newsletter or blog post text. (MS Word)

Maybe a link on your website?  An email to friends/family or clients?  A handout at the cash register or inserted into clients purchases? A blog post on your company or personal blog?  WHATEVER!  We'd love to hear about it!  Post a comment about how you're helping, or visit our Facebook page and share your outreach ideas.  THANKS! 

Sad Testimonial

If you aren't familiar with the MN Home Ownership Center's website... we have a form/widget installed on several pages of the site that allows people to send us questions about their housing situation.  A few days ago the Center received a comment through our online form that I thought I'd share with all of you:

Hi, I wish I knew about your organization before I was put in a position where I was given poor advice by my real estate agent on my short sale of my home. I was told by [my agent] to sign a lien release at closing and that would be the same as a satisfaction of debt agreement but afterward my old mortgage comapny informed me that I owe the deficiency balance and now I have to file bankruptcy. do you know of anyway out of this situation so I dont have to file bankruptcy ? I can't afford to pay back the 145,000.00 dollars they want me to pay. Thanks for your time-

We've been able to connect this consumer with a Housing Counselor that may be able to refer the client on for free legal services... but the sad fact is that there is probably nothing that can be done for this client now... short of declaring bankruptcy. 

$145,000 is an expensive mistake to make... and we hope that this homeowner's sad tale will help motivate other homeowners that are struggling with their mortgage to seek the FREE, non-biased advise and support of a non-profit Housing Counselor.  For more information about the statewide network of Housing Counselors in Minnesota, click here.

Foreclosure Prevention in South-East Minnesota

Today, Thursday March 4th, the Minnesota Home Ownership Center is pleased to be partnering with the SE Minnesota Association of Realtors®, Community Housing Partnership and LSS Financial Counseling to to offer a FREE foreclosure training workshop for professionals on how to help struggling homeowners.

Today's training, in Rochester, will provide an overview of the foreclosure process, where to refer homeowners and how to prepare them to talk with a housing counselor or loan servicer as well as information on national assistance programs like Making Home Affordable.

While space at the event is limited... the SE Minnesota Association of Realtors® will be offering a LIVE WEBSTREAM of the workshop! You can watch the web stream starting at 11:00am, here.

At today's event, the Realtors® association (SEMAR) will also be unveiling their new website and media campaign designed to let SE Minnesota homeowners know about ways to avoid foreclosure.  SEMAR worked closely with the MN Home Ownership Center to produce their website.

Here's the TV commercial that will run throughout SE Minnesota:

You can visit their new website, here.

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.

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.

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.

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.

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 Forum with Congressman Keith Ellison

Monday night October 5th, the Minnesota Home Ownership Center and its network of foreclosure prevention counselors were invited to participate in a public forum hosted by Representative Keith Ellison entitled "The Foreclosure Crisis: Identifying Problems and Sharing Solutions" that was held in Minneapolis.

The first hour of the forum included a resource fair where dozens of struggling homeowners were able to speak with the non-profit foreclosure specialists to help them determine their next steps.

During the next two hours, consumers and constituents heard from the Congressman, State Representatives, Housing Counselors and even lenders about what is being done to help struggling Minnesota families.


Here Congressman Keith Ellison introduces Cheryl Peterson from Twin Cities Habitat for Humanity and Ed Nelson from the MN Home Ownership Center:

(Click to Enlarge)

Here Ed Nelson speaks about the new Foreclosure Postponement law in Minnesota. State Representative Jeff Hayden is on the right:

(Click to Enlarge)

Additional photos of the event can be found on the Center's photo gallery here.

Partner Organization, NeDA, highlighted in Twin Cities Daily Planet

One of the Center's partner organizations, the Neighborhood Development Alliance (NeDA) has been highlighted in an article published on August 10th in the Twin Cities Daily Planet entitled: "Flor's story: Fighting foreclosure in North Minneapolis".

NeDA has been working with a struggling homeowner, Flor Garcia, since May in order to help her understand her rights and responsibilities with her mortgage, as well as mediating on her behalf with her lender, Countrywide, to attempt to get her a loan modification that will be affordable for her.

Garcia, who learned about the foreclosure prevention services of NeDA through the Jewish Community Action, has become an advocate for other struggling Latino families... to let THEM know about the resources available through NeDA:

Garcia is working with her lender, Countrywide Financial (which has recently merged with Bank of America) to lower her payments and get her home out of foreclosure, and has also begun to volunteer with Jewish Community Action to help other Latino community members understand the help and resources that are available to them.

If you, or someone you know, is struggling to make their monthly mortgage payments... HELP IS AVAILABLE! Services are available in English, Spanish, Hmong and Somali. Don't delay, waiting limits your options. Find your local foreclosure prevention counselor, and other resources, here.

Center Partners Win Several Awards

The Minnesota Home Ownership Center is pleased to partner with several award winning agencies and organizations that are working with us on our foreclosure prevention efforts to help keep Minnesota families in their homes:

Hennepin County:

Hennepin County has been honored by the National Association of Counties (NaCO) with a 2009 NaCO Achievement Award for the County's Foreclosure Prevention and Response Program. Not only was the County an award winner, but they were declared "Best In Category" for 2009. Congratulations to Jeff Strand (Administrative Supervisor Foreclosure Prevention & Response Program Tax-Forfeit & Property Revenue Program Taxpayer Services [That's quite a title, Jeff!]) for the award.

Hennepin County has worked with the Center at a number of levels from marketing and outreach to direct homeowner assistance through workshops at the County Libraries. For more information about upcoming workshops at the Hennepin County Libraries, click here.

If you live in Hennepin County and are having difficulty with a foreclosure or mortgage payments, click here.


City of St. Paul:

The City of St. Paul Planning and Economic Development Department - who not only partners with the Center on foreclosure prevention outreach efforts - but also oversees the foreclosure counseling program for City of St. Paul homeowners, was recently honored by the Minnesota Association of Government Communicators, winning TWO separate awards in the 2009 Northern Lights Contest.

Award of Excellence Presented For: Best Use of a Promotional Product
Don't Lose Your Home to Foreclosure

and

Award of Excellence Presented For Visual Design - Themes
Don't Lose Your Home to Foreclosure

Congratulations to Cecile Bedor, Michelle Vojacek and the entire St. Paul PED team for their award-winning, innovative approach to foreclosure outreach using magnetic bumper stickers on City-Owned vehicles.

If you live in the City of St. Paul, and are facing foreclosure or having difficulty with your mortgage payments, click here.