Preforeclosure Notices Continue to Plummet in Minnesota

The Minnesota Homeownership Center has compiled the most recent quarterly data on Preforeclosure notices and the report shows that the number of notices issued by banks and servicers continues to plummet across the state.  The data is another encouraging sign that the Minnesota housing market is slowly recovering from the foreclosure crisis.


In the second quarter of 2013, Minnesota homeowners received only 6,598 preforeclosure notices, a healthy 34% drop from the almost 10,000 notices received in the same quarter of 2012:

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The decline is even more dramatic in the Twin Cities metro area, where the 3,339 3,714 notices received* by homeowners represent a drop of almost half from the same period last year:    

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”We see signs of the overall economy improving as well as a willingness on the part of lenders and servicers to work with struggling homeowners before they enter the foreclosure process,” Said Ed Nelson, Marketing and Communications Manager for the Center  “If the economy continues to gain traction, combined the extraordinary efforts of the statewide network of foreclosure prevention counselors, we should continue see even fewer foreclosures in the future.”

The positive trend for Minnesota cannot be denied... but we also know that these numbers mean that almost SIXTEEN THOUSAND families were struggling to make mortgage payments - and fell behind - during the first half of 2013.   The Minnesota Homeownership Center and the Homeownership Advisors Network will continue to offer FREE foreclosure avoidance services to anyone who is struggling with their mortgage payments.

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.


*DATA UPDATED - The author incorrectly tallied the data for the Twin Cities metro area.

HECAT RFP Available for Nonprofit Housing Organizations

We've highlighted many times on the @Home blog how our collaborative network approach to homeownership education and counseling in Minnesota is unique.  One of key pieces of our successful collaborative approach is that we are the only state in the country with a dedicated pool of funds that provides financial support to eligible non-profit organizations to deliver a variety homebuyer and homeowner services. This dedicated pool is known as HECAT (The Homeownership Education, Counseling and Training Fund).

Some of the valuable services that are funded through HECAT include:

• Pre-purchase education and counseling (Home Stretch),
• Post-purchase education and counseling,
• Home equity conversion counseling (Reverse Mortgages) and
• Foreclosure prevention counseling

Funds for HECAT come from a public-private partnership of agencies and organizations that are fully invested in ensuring that Minnesotans have access to the education and counseling tools necessary to achieve successful (sustainable) home ownership:

• Greater Minnesota Housing Fund,

• Minnesota Housing (Finance Agency), and

• Minnesota Homeownership Center

Each of the funding partners not only contribute financial resources they also actively participate in the grant-making process and provide technical assistance throughout the year. 

The Request for Proposal (RFP) for funding for programs in 2013 and 2014 (funding year runs from October 1st through September 30th) is NOW OPEN.  The deadline for applications is 3:00pm on Monday, June 10th.  This is a STRICT deadline.

Submission of Applications:  This year, nonprofits that are interested in applying for the HECAT RFP, must submit their applications both electronically and a hard copy via mail/dropoff before the deadline.  A Box.com account is required for the electronic upload and it is HIGHLY recommended that you open an account well before the deadline to avoid possible issues.  

For more information about HECAT, or to view the RFP and even lists of award recipients from previous years, visit the Minnesota Housing website... here.

Uptick in Preforeclosure Notices: Blip or Trend?

A mixed-bag for foreclosures in Minnesota


On Wednesday, May 1st, the Minnesota Homeownership Center released its first quarter data on the aggregate number of Preforeclosure Notices received by foreclosure prevention specialists in the Homeownership Advisors Network.  The numbers send some mixed messages.  Overall… it’s something that we’ll need to track carefully over the coming quarters.  

In the first quarter of 2013, members of the Homeownership Advisors Network received 9,291 preforeclosure notices, 23% fewer than during the same time period in 2012, but a somewhat troubling 34% increase from the number received in the Fourth Quarter of 2012.  

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The Twin Cities Metro area also saw a similar situation with their preforeclosure notice numbers… down Year-Over-Year (-34.5%) while up from the fourth quarter of 2012 to the first quarter of 2013 (+25.1%).

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Interestingly… there was a WIDE variance in the year-over-year comparison of preforeclosure notices received by homeowners in the Twin Cities Metro:

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Suburban Hennepin County homeowners received less than HALF the number of preforeclosure notices in the first quarter of 2013 than they received in the first quarter of 2012.  However, 20% MORE Ramsey County residents received a preforeclosure notice when we compare the same time period.

While most Metro counties overall saw generous declines in the number of struggling homeowners… Anoka County bucked that trend and 44 more households received a notice in the first quarter of 2013 than in the same quarter in 2012.  (A 4% increase).

One quarter of data does NOT make a trend.  We’ll keep monitoring these numbers carefully over the coming quarters to see if a trend develops.

We certainly don’t want to sound like a broken record… but it’s also important to keep in mind that while the overall trend of preforeclosure notices continues to head in the right direction… the numbers signify that almost 10,000 Minnesota families continue to fall behind in mortgage payments.  Tens of thousands more are surely struggling to make mortgage payments and will continue to need the foreclosure prevention services provided by the Minnesota Homeownership Center and the Homeownership Advisors Network.

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.

Independent Foreclosure Review Payments to Begin Shortly

Consumers are warned to be careful!

At the end of March, Rust Consulting, the private contractor hired by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board to oversee applications and payments for the Independent Foreclosure Review began mailing postcards to 4.2 million homeowners.  These postcards officially notify these consumers that they will be receiving IFR settlement payments.   The payments themselves will be mailed in the next four to eight weeks.

For more information about IFR, view some of our previous blog posts, here and here.

DON’T BECOME A VICTIM OF A SCAM.

Scam artists are ALWAYS looking to prey on consumers.  If you receive a postcard, make sure that the information is coming from Rust Consulting, that the phone number on the card is 1-888-952-9105, and that the website to visit is one of the following: 

• The Office of the Comptroller of the Currency (OCC: http://www.occ.gov/independentforeclosurereview), 
• The Federal Reserve Board (http://www.federalreserve.gov/consumerinfo/independent-foreclosure-review-payment-agreement.htm), or
• The Independent Foreclosure Review (http://independentforeclosurereview.com/).
  
  Any other solicitation may be a scam!

DO NOT PAY TO GET HELP:

• No one has to pay a fee to receive payment through the IFR.
• No one can ‘help you get more money’ as the amount of the payment has been decided by federal regulators.  The amount cannot be negotiated.
• The opportunity to request an independent foreclosure review is OVER.  If you were not on the regulators and the servicers lists – the deadline to apply was December 31, 2012 – paying someone will NOT get you added to the list.

For additional information, visit the Frequently Asked Questions page on the independent foreclosure review website, here.

NOTE:
The most recent postcards ONLY cover settlements with 27 major servicers.  (Click here for a complete list).  There are still 3 major servicers that have not settled:

• Ally (GMAC Mortgage), 
• Everbank, and 
• OneWest Bank (IndyMac).

If you have questions regarding the Independent Foreclosure Review or any mailing you receive about IFR, please contact a Homeownership Advisor in your area.  

If you, or someone you know is struggling with mortgage payments... visit www.hocmn.org or call the Minnesota Homeownership Center at 866-462-6466 today!  Waiting limits your options!

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.

Dramatic Drop in Preforeclosure Notices

Another good sign for Minnesota's Housing Market


On Tuesday, January 22nd, the Minnesota Homeownership Center released its year-end data on the aggregate number of Preforeclosure Notices received by foreclosure counselors in the Homeownership Advisors Network.  The numbers continue to show almost universal good news about the future of foreclosures in Minnesota.  

In the fourth quarter of 2012, members of the Homeownership Advisors Network received only 6,937 preforeclosure notices, 45% fewer than during the same time period in 2011, reaching the lowest level reported since the state legislature required the notices in late 2008:

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In total, Minnesota households received 28% fewer preforeclosure notices in 2012 than they did in 2011.  In addition, the preforeclosure notices are down just as dramatically in the Twin Cities Metro as well:

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The City of St. Paul seems to be the ONLY location where notices have not dramatically decreased.  We'll keep our eye on these numbers to see if the quarter four data is an anomaly or a sign of a deeper issue. 

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While it is encouraging that the numbers of preforeclosure notices received is down to the the lowest level since we started tracking these numbers, we can't lose sight of the fact that almost 40,000 Minnesota households continued to struggle with their mortgage payments in 2012.

If you're struggling with mortgage payments... you're not alone.  Thousands of others are also struggling.  More importantly, Minnesota has a statewide network of non-profit organizations that can help YOU put a plan in place to avoid foreclosure.  Last year, more than half of the people who sought out our services were able to avoid foreclosure.  Don't delay, contact us today. 

Housing Holding Pattern: Preforeclosure Notices

A Good News / Bad News situation

On Monday, October 29th, the Minnesota Homeownership Center released its data on the aggregate number of Preforeclosure Notices received by counselors in the Homeownership Advisors Network for the third quarter of 2012.  

10,016 households were notified by their lender/servicer between June and September that they may find themselves in foreclosure if they aren't able to bring their mortgage payments current.

This number sends a mixed message that can be cause for celebration or concern, depending on your disposition:
  
The Good News -  Year over year, the numbers continue to show improvement for the number of households that are struggling with foreclosure as the number reflects a decline of 31% from the number received in the same period in 2011.  (14,586 vs. 10,016)

The Not-So-Good News -  We saw no improvement when we compare the number received in the third quarter with the number received in the second quarter.  When comparing the two quarters, we actually see a very minor 0.21% increase.

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The Twin Cities Metro area experienced a slightly larger increase in the number of notices from Q2 – Q3 (a 2% increase) and while it shows a substantial decline from the same time period in 2011 (-27%) the decline doesn't match the overall statewide decline (-31%, mentioned above).

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Overall today’s numbers show that while the foreclosure crisis is slowly coming to an end…we are, by no means, out of the woods yet.

In addition, we shouldn't lose sight of the fact that the numbers show that more than THIRTY THOUSAND Minnesota families continue to struggle with mortgage payments. You can help these families by connecting them with information, resources and effective foreclosure prevention help.  

Join us in spreading the word by placing banners on your blog/website… or asking your employer, social service agency or local government to post links to the Minnesota Homeownership Center’s website:

For electronic copies of banners you can use, visit: http://hocmn.org/en/bannerpage.cfm.

If you're struggling with mortgage payments... it's as you can see from this blog post.... you're not alone.  Thousands of others are also struggling.  More importantly, Minnesota has a statewide network of non-profit organizations that can help YOU put a plan in place to avoid foreclosure.  Last year, more than half of the people who sought out our services were able to avoid foreclosure.  Don't delay, contact us today.

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!

Preforeclosure Notices Continue Downward Trend

Special thanks to Aaron Dickinson for reminding us that we hadn’t released our first quarter pre-foreclosure data.  THANKS AARON!

On  Thursday, June 7th, the Minnesota Homeownership Center released its data on the aggregate number of Preforeclosure Notices received by foreclosure counselors in the Homeownership Advisors Network for the first quarter of 2012 (January through March).  The numbers, while increasing slightly from Q4 2011, show that the number of struggling households in Minnesota continues its downward trend. 

In the first quarter of 2012, members of the Homeownership Advisors Network received 12,106 preforeclosure notices, up very slightly (.75%) from Q4 2011, but 17% fewer than during the same time period in 2011:

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Encouragingly, the number of pre-foreclosure notices is down in every area of the state… except for two areas that seem to have bucked the downward trend.  We’ll continue to monitor these two areas to see if this is a trend… or just an anomaly:

• Scott & Carver Counties reported an increase of 7% (From 558 to 599 notifications); and
• Wilkin & Clay Counties reported a 40% increase – although small numeric changes in this area can show large variations in the percentage (40 households received a notice in Q1 2011, while 56 households received a notification in Q1 2012). 

While these numbers are encouraging, there were still over 12,000 households that received a preforeclosure notice in the first quarter of 2011:

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Here's the breakdown for the number of preforeclosure notices received by members of the Homeownership Advisors Network in the 7-county metro area:

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As background, Minnesota state law (MN Statute 580.021) requires that the foreclosing party provide information regarding foreclosure prevention counseling services to the mortgagor (homeowner) and provide the homeowner’s name, address, and most recent known telephone number to an approved foreclosure prevention counseling agency before filing the notice of pendency.

Once the Minnesota Homeownership Center's network of foreclosure counselors receives notification from the lender/servicer/homeowners association, they then contact the homeowner, and track the number of notifications received during the month in their monthly reporting to the Center.


Most importantly, if you or someone you know is struggling with their mortgage payment, new programs, resources and assistance are becoming available all the time. Don’t give up… contact a foreclosure counselor that is a member of the Homeownership Advisors Network today to see if there’s help available for you to avoid foreclosure. Even if you’re not yet behind, now is the time to call. To find your local foreclosure counselor, click here.

HAMP Changes Take Effect Friday June 1

Effective Friday, June 1, 2012 HAMP “Tier 2”  -  which many people have simply referred to as HAMP 2.0  -  will roll out for the Making Home Affordable (MHA) loan modification program.  Like many MHA updates, these changes apply to non-GSE mortgages. 

The goal of HAMP 'Tier 2' is to increase eligibility for homeowners, including:

• those who did not meet the original HAMP guidelines,
• those who may have failed on a HAMP modification, or 
• those who own rental properties.

With HAMP 'Tier 2', many of the initial qualification criteria are still in place:

• loan must have been originated before January 1, 2009, 
• homeowner must be able to document a financial hardship;
• Only loans on properties with one-four units can be modified;
• there is a maximum outstanding loan amount (maximum unpaid principal balance.

But now, a borrower may also be considered for HAMP 'Tier 2' if any of the following also apply:

• they did not successfully complete (defaulted on) a HAMP 'Tier 1' modification;
• their monthly mortgage payment is below the minimum 31 percent front end Debt-To-Income ratio;
• and, most controversially, up to three seperate mortgages may be modified if they secure rental properties

No mortgage loan may be modified more than once in either Tier 1 or Tier 2. 

People interested in learning more about the HAMP program and the new 'Tier 2' changes, can visit the Making Home Affordable website, here.

The Homeownership Advisors Network will continue to focus its attention on helping owner-occupants avoid foreclosure, but may be able to answer some basic questions for rental property owners as well.

HAMP, HAMP 2.0, DTI, VPN, HARP, MHA, GSE... the 'alphabet-soup' of programs, agencies and programs can be overwhelming for struggling homeowners.  In Minnesota, there is a FREE, effective resource available: The Homeownership Advisors Network.  Trained and certified foreclosure prevention experts can work with YOU to find a solution to YOUR mortgage issues.  Don't delay, contact an advisor by visiting the Center's website today.

Manufactured Housing in Minnesota

New Fact Sheet Available!

Used Under Creative Commons License
Foto by Archerland2005

Manufactured homes (often called mobile homes) are built entirely in a factory and have a permanent structure that allows for them to be transported. The homes are usually placed on land owned by the homeowner or leased at a mobile home park.  Mobile home design and aesthetics have changed dramatically in the past few years and most no longer resemble the ‘trailer’ look of years past.  They can be an affordable housing option for Minnesotans, but there are some VERY important considerations to make before you decide to purchase a manufactured home.


For that reason, the Minnesota Homeownership Center has created a new Fact Sheet that covers:

•  Advantages and Disadvantages to purchasing a manufactured home
•  Living in a resident-owned or cooperative mobile home park
•  Financing the purchase of a manufactured home
•  Steps to take when purchasing

To view the complete fact sheet… and others that can help you in your goal of homeownership, visit the Center’s website, here.


As always the Center highly recommends that if you’re thinking of purchasing your first home in Minnesota, whether manufactured housing or traditional site-built housing, that you first make an appointment with a Homeownership Advisor (Housing Counselor) who will be able to work with you to create a plan to reach your goal of homeownership.  They’ll also help you understand your rights and responsibilities as a homeowner and make sure that you know about any down payment or entry-cost assistance programs you might be able to access.


The Minnesota Homeownership Center exists to promote and advance successful homeownership in Minnesota… speak with a Homeownership Advisor today so that YOU can be successful in the purchase of your first home.  Counseling services are FREE and confidential.

Preforeclosure Notices Continue to Decline in Minnesota

On  Thursday, January 19th, the Minnesota Homeownership Center released its year-end data on the aggregate number of Preforeclosure Notices received by foreclosure counselors in the Homeownership Advisors Network.  The numbers continue to indicate that Minnesota is slowly emerging from the foreclosure crisis.  


In the fourth quarter of 2011, members of the Homeownership Advisors Network received 12,016 preforeclosure notices, 30% fewer than during the same time period in 2010, reaching the lowest level reported since the state legislature required the notices in late 2008:

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On a yearly basis, Minnesota households received 24% fewer preforeclosure notices in 2011 than they did in 2010.  

Most encouraging is that the fact that the numbers of preforeclosure notices received is down in every county in the Metro area.  In addition, every agency in the Homeownership Advisors Network reported receiving fewer notices in the fourth quarter of 2011 than in the third, AND reported receiving fewer notices in the fourth quarter of 2011 compared to the same period in 2010.


While these numbers are encouraging, we shouldn’t lose sight of the fact that they still show that more 54,500 households continued to struggle with delinquent mortgages in 2011:

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Here's the breakdown for the number of preforeclosure notices received by members of the Homeownership Advisors Network in the 7-county metro area:

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As background, Minnesota state law (MN Statute 580.021) requires that the foreclosing party provide information regarding foreclosure prevention counseling services to the mortgagor (homeowner) and provide the homeowner’s name, address, and most recent known telephone number to an approved foreclosure prevention counseling agency before filing the notice of pendency.


Once the Minnesota Homeownership Center's network of foreclosure counselors receives notification from the lender/servicer/homeowners association, they then contact the homeowner, and track the number of notifications received during the month in their monthly reporting to the Center.


If you or someone you know is struggling with their mortgage payment, new programs, resources and assistance are becoming available all the time. Don’t give up… contact a foreclosure counselor that is a member of the Homeownership Advisors Network today to see if there’s help available for you to avoid foreclosure. Even if you’re not yet behind, now is the time to call. To find your local foreclosure counselor, click here.

Freddie Mac Announces Expansion of Mortgage Relief Program

Earlier this week, mortgage giant Freddie Mac announced an expansion of its mortgage forbearance program to assist borrowers who are experiencing a financial hardship due to unemployment.


A forbearance is an agreement on the part of the lender or investor to withhold their claim to foreclose on a property - an agreement not to foreclosure for a set period of time.


According to Freddie Mac, their servicers can now offer eligible borrowers a short-term unemployment forbearance period of up to six months plus the possibility of an extended unemployment forbearance period if they remain unemployed for more than six months.  (The six-month forbearance period is 'renewable' for a second six-month period, not to exceed a maximum of 12 months.)  Under previous guidelines, the maximum period was six months.


In addition, this expanded program is now available for unemployed homeowners that are already performing under a HAMP or other loan modification program.  If they continue to be eligible for HAMP or another loan modification program, they will be re-evaluated at the end of the forbearance period.


Freddie Mac has outlined some basic eligibility criteria for borrowers (the full criteria are available in their Single-Family Seller/Servicer Guide (Guide) Sections A65.26 through A65.28, here) that include:

• Borrower must currently be experiencing an an unemployment hardship;
• Borrower's current monthly housing expense-to-income ratio (excluding unemployment benefits) must be greater than 31%;
• Borrower's cash reserves cannot exceed 12 months of their monthly housing expense;
• Only a borrower's primary residence is eligible. Second homes and investment properties are ineligible.
• The property cannot be vacant, condemned, or abandoned.

Effective Date
Freddie Mac has strongly encouraged its servicers to begin offering eligible borrowers the unemployment forbearance relief options as soon as possible, but are required to begin offering unemployment forbearance to eligible borrowers no later than February 1, 2012. 


Are you struggling with you mortgage and like to know if an unemployment forbearance - - or other solution - - is right for you?  In Minnesota, the non-profit housing counselors in the Homeownership Advisors Network are available to meet with you FOR FREE to help you with your options to avoid foreclosure.  To find your closest counselor, visit the Minnesota Homeownership Center's website here.

Financial Assistance For Homeowners Displaced By Foreclosure

Due to the success of a pilot program initiated in late 2009 and the generous support of the Otto Bremer and Target Foundations, the Minnesota Homeownership Center announces the availability of financial grants of up to $2,500 to help cover the costs of moving to alternative housing after a foreclosure.  The goal of the grants is to assist Minnesota homeowners with the difficult transition from homeownership back into a rental situation, and to prevent homeowners that were unable to prevent the foreclosure of their home from becoming homeless.


The counselors of the Homeownership Advisors Network (housing counselors) are AMAZING at the work they do to keep homeowners in their homes whenever possible.  However,  foreclosure is inevitable for some families... and these grants allow the members of the network to keep a difficult situation from becoming a tragic one.


Currently, these grants, known as Re-Housing Grants, are only available to qualified homeowners in the City of Saint Paul and Dakota & Washington Counties.  Interested homeowners should contact the Minnesota Homeownership Center for information on how to connect with a member of the Homeownership Advisors Network that is participating in the program.  Teams established by these non-profit counseling agencies will help homeowners determine if they are eligible for one of these grants based on established criteria:

• The applicant has not previously received a grant from this or a similar program.
• The Foreclosure Sale has occurred and retaining ownership is unlikely and relocation is needed.
• limited income and/or excessive but necessary expenses have prohibited the homeowner from saving enough money to secure alternative housing.
• The full monthly rent payment in the alternative housing will be affordable, long-term, for the applicant.

Homeowners who are interested in learning more are encouraged to contact the Minnesota Homeownership Center at 651-659-9336 or by visiting www.hocmn.org.

UDPATE:  Funding is available for the ENTIRE SEVEN COUNTY METRO!  (Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington Counties).  For information on who to contact, the Center has established a page on their website, here:  http://hocmn.org/en/rehousing.cfm

Preforeclosure Notices, 3rd Quarter - A Mixed Bag

Preforeclosure Notices Send Mixed Signals for Housing in Minnesota


On Thursday, October 27th, the Minnesota Homeownership Center released its third quarter data on the aggregate number of Preforeclosure Notices received by foreclosure counselors in the Homeownership Advisors Network.  The numbers continue to show that Minnesota is slowly emerging from the foreclosure crisis, while also signaling reasons for the state to continue to make fighting foreclosures a priority: the number of preforeclosure notices received in the third quarter of 2011 signals the first uptick in quarterly notices in a year.


In the third quarter of 2011, members of the Homeownership Advisors Network received 14,586 preforeclosure notices, 23% fewer than during the same time period in 2010, but an increase of 9% from the second quarter of 2011, when 13,372 notices were received.

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Most troubling is that 85% of the increase in notices from Q2 to Q3 came from the Twin Cities metro… with 43% of the increase coming from Hennepin County alone, which saw an increase of more than 500 preforeclosure notices.  Is this a statistical outlier or the beginning of a troubling trend?  The Minnesota Homeownership Center will continue to track these notices and will report on the Q4 and year-end numbers in early 2012.


The total number of preforeclosure notices received in the state of Minnesota in 2011 now exceeds 42,000:

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Here's the breakdown for the number of preforeclosure notices received by members of the Homeownership Advisors Network in the 7-county metro area:

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As background for new readers, Minnesota state law (MN Statute 580.021) requires that the foreclosing party provide information regarding foreclosure prevention counseling services to the mortgager (homeowner) and provide the homeowner’s name, address, and most recent known telephone number to an approved foreclosure prevention counseling agency before filing the notice of pendency.


Once the Minnesota Homeownership Center's network of foreclosure counselors receives notification from the lender/servicer/homeowners association, they then contact the homeowner, and track the number of notifications received during the month in their monthly reporting to the Center.


If you or someone you know is struggling with their mortgage payment, new programs, resources and assistance are becoming available all the time. Don’t give up… contact a foreclosure counselor that is a member of the Homeownership Advisors Network today to see if there’s help available for you to avoid foreclosure. Even if you’re not yet behind, now is the time to call. To find your local foreclosure counselor, click here.