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Housing & Redevelopment Authority Page 3 September 7, 2010 ----------------------------- • skills of social workers, as well as the "hard" skills required to read and understand mortgages, documentation, and work with lenders. Chair Wilson asked how a homeowner gets the services they need. Mr. Nelson stated that by contacting them, no matter where the call is from within state of Minnesota, theywill referred to the correct with services they need. Chair Wilson asked if the goal is the keep the home. Mr. Nelson stated not always; that the goal is long-term housing. Sometimes homeowners simply cannot afford the home and it might be best for them to go through foreclosure process, work with their lender on ashort- sell, etc. Chair Wilson asked what about people who have lost value of home and just want to walk away, even though they can afford the payments. Mr. Nelson stated that the MN Homeownership Center will always advise that if they can afford to paytheir mortgage to continue and will never counsel a homeowner to walk away. He noted that most homeowners who make decision to walk away from their mortgage do not come in for their services. Commissioner Koester asked if any of the 168 foreclosures that were prevented are temporary or are they considered "done". Mr. Nelson stated that there are a number of homeowners that were helped in 2007-2008 that are now coming back in 2010. He noted that homeowners can come back as manytimes as theylike. He stated that financial assistance is a "once in a lifetime" event, however, theystill can provide other types of counseling assistance. He explained that the number one driver of homeowners seeking • foreclosure assistance is unemployment or underemployment. Mr. Nelson stated that homeowners can contact the hocmn.or~ website foreclosure services. Commissioner Koester asked Mr. Nelson if has seen much difference in the foreclosures that were prevented and those that were not able to be prevented. Mr. Nelson stated that there are situations which are very complicated, such as when there are multiple liens on a property. He stated in one instance there were 11 liens on a home. Commissioner Motin asked if there are situations where the homeowner is counseled to file bankruptcy but is still able to keep the home. Mr. Nelson stated that this would be a last resort situation. He explained that there can be medical debts other expenses not related to the mortgage. He stated that he would counsel a homeowner with multiple loans that even if they walk away, a junior lien holder can sue them He stated this is a very complex matter, and for most cases, theywill not recommend bankruptcy. Chair Wilson thanked Mr. Nelson for his presentation. 6. CRher Business 6.1. Commissioner Toth asked if the exterior painting has been completed on the 716 and 720 Main Street buildings. Mr. Deckert stated no, that she is still waiting for one more bid 7. Adjourn to Work Session in Upper Town Conference Room to Discuss MN Department of Employment & Economic Development Proposed Demolition Loan Program • There being no other business, C11air Wilson adjourned the meeting.