This week I took in a videoconference offered by the Minnesota Department of Human Services. The topic was foreclosure prevention services – how community organizations can assist consumers to navigate the waters.
Here are a couple of statistics from the Minnesota Home Ownership Center in St. Paul.
- 80,000 Minnesotans were expected to miss at least one mortgage payment in 2008
- Projections for 2008 suggested that one of every 31 Minnesota households will have been foreclosed upon between 2005 and 2008
In response to this crisis, a network of agencies has come together to help those caught in these trying times. Foreclosure prevention counseling works with households to reach long-term solutions that are stable and affordable. Especially with early intervention, many families can keep their homes. And for those that can’t, counseling can help in the transition.
As a Bremer Bank employee, rural community resident, and part of a circle of friends, colleagues and family who likely know people caught up in the housing challenges in this economy, here are the key points I picked up from this learning opportunity:
- Encourage people to call the Minnesota Home Ownership Center as early as possible in their situation, whether they are worried about their next house payment, or they have already missed one or two payments. The earlier people seek help, the more options there are:
651-659-9336 or 866-462-6466.
- An additional 40 positions in foreclosure and credit counseling have been added to the system. This means counselors will return calls in less than 48 hours.
- Counselors are a lifeline to help consumers be proactive, rather than hide from payment due bills and phone reminders. They help consumers review their current financial circumstances – income and expenses; do a budget analysis; understand their mortgage product; understand their credit reports; recognize scams and predatory practices; and help with workout plans and options.
- Then, after this one-on-one help, and in a much more informed position, encourage consumers to contact their lender to discuss options.
- It is illegal in Minnesota to require consumers to pay for foreclosure prevention or mortgage counseling services. Unfortunately, this doesn’t mean it’s not happening, and some families are getting scammed with these quick fixes. Call the numbers above for free, honest, responsive counseling services.
- For renters caught in the crisis, call HOME Line: 612- 728-5767 or 866-866-3546.
Posted by Lois Schmidt, NRS, Willmar
No comments:
Post a Comment