09-07-2010 HRA MIN - Laserfiche WebLink

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Housing & Redevelopment Authority September 7, 2010 ----------------------------- Page 2 Mr. Nelson explained that the Minnesota Homeownership Center is anon-profit • organization founded in 1993. Their purpose is to promote successful homeownership in Minnesota. They do this byproviding foreclosure prevention programs, pre-purchase counseling and education. In 2009, there were 702 foreclosures in Sherburne County. Of those, 357 households made use of foreclosure counseling services. Foreclosure was prevented for 170 homeowners (49%), and 168 (48%) were not prevented. Mr. Nelson noted that successful foreclosure prevention percentages in Minnesota are among the highest in the country. Mr. Nelson stated that that all of their services are provided free of charge. He explained that there are approximately 50 partners in the program He noted that even if a homeowner is not able to keep their home, theyprovide other services to deal with emotional and economic issues. Mr. Nelson explained that there have already been 465 foreclosures in Sherburne County through the second quarter of 2010. The number of foreclosures has also increased in surrounding counties. If the trend continues, it is estimated the xotal number of forecloses in 2010 will increase 33 percent over 2009. He stated that this number would rival the 2008 numbers, which was a record year. However, theyhave not seen a corresponding increase in number of counseling requests in Sherburne County (180 at mid-year 2010). He stated there are still many households that don't know where to turn. He explained that people hear ads on TV and radio for foreclosure assistance, and thinkthat these are onlyresources available to them. The "Look Before You Leap" program's goals include providing free resources and public education regarding scams. In 2008, there was only one complaint of a foreclosure scam In • the end of 2009, there were approximately 8,000 scams. He expects the number of complaints to be around 50,000 by the end of 2010. A case was reported in Washington County where a homeowner paid a total of $27,000, paying $3,000 month house payments to a scan artist. Mr. Nelson stated that organizations should be checked to see if they are registered with the State of Minnesota and whether or not the organization will receive some type of benefit. He stated that no one in the State of Minnesota can legally charge an upfront fee for foreclosure assistance. Mr. Nelson explained that the scam artists have official sounding names and target distressed homeowners. Mr. Nelson stated homeowners should be on the lookout for organizations that charge upfront fees, askthem to sign over a deed or title, ask to give them power of attorney, or tell the homeowner to stop paying their mortgage. He stated that the homeowner should ask if the organization benefits in anyway from the decisions the homeowner makes. Mr. Nelson stated he encouraged residents to talk to friends and neighbors, and spread the word that foreclosure assistance is available.. He noted that the website address is lookbeforeyouleap.or~. He thanked city staff, stating that they have been wonderful to work with. He noted that there are many homeowners right here in Elk River that are struggling. Chair Wilson asked about qualifications of the organizations that partner with them Mr. Nelson stated that organizations offering foreclosure prevention must have training/certification at both the national and state levels, and must participate in continuing training to staycompletelyup to date. He stated that sometimes dollars are available; and `- there is a verystrong social services network Most counselors are trained with the "soft:"