03-07-2011 HRA MIN - Laserfiche WebLink

Home Browse Search

Housing & Redevelopment Authority March 7, 2011 Page 2 Five churches in Elk River participated by offering shelter for five weeks around • Thanksgiving, but there were no participants. She noted that there is a concern for finding a place for families to go during the day, as they would not be able to stay at the churches during daytime hours. She stated that their goal is to have a total of 13 churches so each church would rotate one week participation every three months. She explained that they are looking for volunteers to serve on four basic committees and reviewed the responsibilities proposed for each group: 1) Host Congregation Recruitment; 2) Day Center; 3) Transportation; and 4) Fundraising. Commissioner Lieser stated that the next meeting of the group will be March 10, 2011, 7:30 p.m. at Central Lutheran Church. She stated that the organization hopes to open permanent shelter housing in 2012. 6. Presentation -Foreclosure Prevention Counseling Services Provided b~Lutheran Social Services in Partnership with MN Home Ownership Center Ms. Deckert stated that the HRA partnered with the MN Homeowners Association in 2008 to create and distribute foreclosure prevention information to the local community. Staff has held foreclosure forums to educate homeowners about the free foreclosure prevention counseling that is available. Ms. Deckert introduced Laura Ostlie of Lutheran Social Services. Ms. Deckert stated that Ms. Ostlie is aHUD-certified foreclosure prevention counselor. Ms. Ostlie serves the Elk River area, working out of the Willmar and St. Cloud offices. She noted that Ms. Ostlie provides both in-person counseling and phone appointments. Ms. Ostlie explained that Lutheran Social Services is the HUD-approved housing counseling agency in Sherburne County, serving the Elk River area. LSS serves approximately 50 counties within the state. She stated that approximately three ago, the State of Minnesota • required all mortgage servicers to notify their homeowners behind on their mortgage payment who their housing counseling agency is. Ms. Ostlie stated that 4,000 foreclosure information packets were given out during 2009 - 2010, with approximately one-third of those people being from Elk River. Only 100 of those utilized foreclosure counseling services. She explained that they are currently working with people who have never been in financial distress before, due to unemployment. Also, they are dealing with homeowners who have been trying to work with their mortgage company on modifications for the past couple of years. The goal is to make sure homeowners are aware of their rights and responsibilities, and to assist them in working with their mortgage servicers/lenders. She noted that in some cases, saving the home may not be the best option. Chair Wilson stated he was concerned that only 100 families out of 4,000 utilized the counseling services and wondered why. He asked how an agency became "HUD-certified". He felt it would be helpful for people to know they are qualified. Ms. Ostlie stated she felt the numbers seeking counseling is because homeowners are scared. She stated that each lender is required to report to the nearest counseling agency that a mortgage is delinquent. Packets are mailed out to the individuals, but people going through hardships don't like to open their mail. Ms. Ostlie explained that in order to become HUD certified, counselors go through training, testing, and on-going trainings, due to the number of changes within mortgage industry and housing counseling services. In three years, lots of changes revamp services and stay on Home Affordability Modification Program is first option they look at in trying to save the home. She noted that homeowners are probably not aware of the latest information and changes. •