Alarming foreclosure rates foster partnership

The three-pronged venture, called Missouri Homeownership Preservation Network, comes on the heels of a Foreclosures.com report saying Missouri led the country in the percentage increase of foreclosures filed year-to-date, with a 240 percent increase compared to the same period in 2006.

The California-based real estate investment advisory firm’s housing market analysis found that in January and February, the number of Missouri foreclosure filings skyrocketed to 5,966 from 1,753 during the same period last year. California came in second with 50,388 foreclosures filed year-to-date versus 17,720 in 2006, a 184 percent increase.

Greene County foreclosures last year increased by 34 percent from 2005 to 513 foreclosures, according to a news release by UNA, which has partnered with St. Louis nonprofit Beyond Housing and national homeownership counselors NeighborWorks America.

The partners held a mortgage foreclosure prevention training conference March 19–21 at Ozarks Technical Community College with participation from more than 50 organizations.

“We must get the word out that there are solutions to prevent foreclosures,” said Bob Horton, UNA executive director, in a news release. “Early action is key. Families who are behind in their mortgage payments need to talk to a housing counselor or their lender. Many lenders are willing to work with borrowers to try to avoid foreclosures.”

NeighborWorks America put up $110,000 for the MoHPN initiative, which offers three aids to homeowners:

• A hotline connecting callers to local certified homeownership counselors and creditable lenders. The number is (888) 995-HOPE.

• One-on-one counseling to identify foreclosure solutions and options for helping homeowners catch up on missed payments. Counselors also can work with lenders to put looming foreclosures on hold and give homeowners time to sell their homes.

• Home buyer education via free quarterly courses. Consumers can become educated about managing their money, maintaining their homes and avoiding trouble and refinancing.

Other partners in Springfield include Consumer Credit Counseling, Catholic Charities, Mayor’s Commission on Human Rights, Habitat for Humanity, Caring Communities and Ozarks Area Community Action Corp.

More foreclosure data

Foreclosure filings in the Midwest rose more than 70 percent from 2005 to 2006, and the number of foreclosures in Missouri nearly doubled to more than 16,700 last year, according to the Foreclosures.com report.

The Midwest region as a whole, however, experienced a decline in filings from January to February. Last month, there were 17,329 foreclosures filed in the Midwest compared to 20,272 in January, according to the report.

Nationwide, $1 trillion in adjustable rate loans will reset in 2007, and in the next several years 2.2 million American families will lose their homes, according to the Mortgage Bankers Association.

According to the UNA news release, it is much less expensive to counsel and restructure loans than to foreclose. The cost to the borrower includes a lost home, equity and ruined credit. The cost to the community includes $30,000 to $50,000 in law enforcement services and lost economic development. And contrary to some common misperceptions, banks and mortgage investors lose in foreclosure, too – at least $50,000 on each foreclosed home, UNA said.[[In-content Ad]]