Of General Interest

FOR IMMEDIATE RELEASE

Contact:
Julie Gugin, Executive Director, julie@hocmn.org
Kim Skobba, Minnesota Home Ownership Center, kim@hocmn.org
651-294-9018, 651-659-9336
Ed Nelson, Minnesota Home Ownership Center
651-659-9336 ed@hocmn.org

STATEWIDE FORECLOSURE PREVENTION OUTREACH INITIATIVE HELPS DISTRESSED HOMEOWNERS FIND SOLUTIONS

Initiative Urges Early Action

St. Paul, MN.  This month, the Minnesota Home Ownership Center is kicking off a statewide foreclosure prevention outreach effort designed to make Minnesota’s at-risk homeowners aware of their options and encouraging them to act before they get behind on their mortgage payments. Minnesota, along with the entire country, is currently witnessing an alarming trend in home foreclosures. In 2008, an estimated 80,000 home owners are expected to become delinquent on their mortgage payment.  As the foreclosure crisis continues, more and more Minnesota homeowners face the possibility of losing their homes. As homeowners get behind on their mortgage, fear, embarrassment or the belief that nothing can be done often prevent them from seeking help.  Our first contact with distressed homeowners often occurs when they are already in foreclosure and by then, the options are limited. “Most people don’t realize that they if they act early, there are many tools available to help them avoid foreclosure”, said Julie Gugin, Executive Director of the Minnesota Home Ownership Center.

For many homeowners, taking action early will allow them to keep their home.

Working with a lender or a foreclosure prevention specialist will help many homeowners avoid foreclosure. Housing counselors and loan servicers work with a homeowner to explore potential solutions such as extending the mortgage to make up missed payments, temporarily lowering payments or lowering the interest rate to make the loan more affordable.  Homeowners at-risk of foreclosure are not always aware that this help is available.

A recent survey by Freddie Mac found that nearly 75% of delinquent borrowers are likely to work with a housing counseling agency but less than half were aware that housing counseling is an option.  The Minnesota Home Ownership Center’s statewide foreclosure prevention initiative is designed to reach homeowners early in the process and help them understand their options. The centerpiece of this initiative is a series of free workshops, called Borrowers Workshops, for homeowners who are worried about making upcoming mortgage payments or are already facing foreclosure. The Borrowers Workshops 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 mortgage lending and foreclosure specialists.

In addition to the workshops, the Minnesota Home Ownership Center is conducting a public awareness campaign targeted to home owners living in communities hardest hit by foreclosures. The initiative is also working to educate front line staff at libraries, schools, public and social service agencies to increase their awareness of the foreclosure prevention options available for their clients.

The outreach effort is part of a statewide foreclosure prevention capacity building initiative led by the Home Ownership Center, Greater Minnesota Housing Fund, Family Housing Fund, and Minnesota Housing. Minnesota Housing is the primary funder of the initiative, with additional support from local private and public partners.  Recognized nationally as a model of home ownership and foreclosure prevention programming, the Minnesota Home Ownership Center convenes a network of 50 community-based non-profit, government and tribal organizations to deliver homeownership education and foreclosure prevention services to low and moderate-income households throughout Minnesota. Through its network of community partners, the Center provides 15,000 low- and moderate-income households each year with the tools they need to purchase and sustain affordable homes.

Lutheran Social Services offers Assistance!

Lutheran Social Services (LSS) offers an array of resources and services to residents in Central Minnesota.  Credit, Bankruptcy and Foreclosure Counseling are available as well as Energy Assistance to qualifying individuals.  Services provided by LSS are free of charge.  Homeowners should beware of those offering a quick and easy fix to their problems, especially television promotions which can often make problems worse.

LSS in partnership with the Minnesota Home Ownership Center offers assistance to homeowners facing foreclosure.  The key to intervention is seeking assistance before payments are missed.  LSS can discuss options and develop an individualized plan.  Homeowners can get accurate answers to questions and concerns that will help them through the process from trained professionals.

LSS can be reached locally at 829-5000 or toll free at 1-800-777-7419 or visit their website at http://www.lssmn.org/ for more information on the programs they offer.