6.0. HRSR 06-24-2002 - Laserfiche WebLink

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• community. In 1994 both Habitat and NRRC expanded their service areas to serve all homeowners in Minneapolis, NRRC serving North and Northeast Minneapolis and Habitat serving South and Southeast Minneapolis. Today Twin Cities Habitat for Humanity, NRRC, and Housing Information Center continue cooperatively developing the program, under the auspices of the Home Ownership Center www.hocmn.orq as fiscal administrator. The program operates within a framework that provides customized services to meet the individual needs of each applicant as well as respond to the ever-changing mortgage industry. What we do Twin Cities Habitat provides counseling, advocacy, referrals to additional resources and, in some cases, financial assistance to families facing foreclosure. We work with families who have or are in imminent danger of falling behind with their payments. Together with the homeowner we analyze their situation, identify resources to address the situation, develop a plan for addressing their individual issues and identify their options for preventing the foreclosure of their property. We also advocate with the mortgage company to determine whether the lender is willing to extend some time or some assistance to help the family stay in their home. As a last resort and when qualified, Twin Cities Habitat will provide a deferred loan to a family if such funding is necessary to help this family correct their delinquency and prevent the foreclosure. Since 1993 Twin Cities Habitat has served nearly 2000 families facing the prospect of foreclosure. We have found that preventing foreclosure and keeping families in their homes is a much more cost effective way of meeting a family's housing needs than allowing the foreclosure to happen, forcing a family out onto the street. It is a program that also adds tremendous stability to neighborhoods. Once a foreclosure • occurs, the house is typically boarded up and sits vacant for months, or even years. On the other hand, if the foreclosure can be prevented, the house then remains occupied and neighborhood stability is strengthened. We also operate this program in a manner consistent with one of Habitat's core principals. The deferred loan that Twin Cities Habitat provides to families as a last resort and when qualified, is always a 0%-interest loan. Furthermore, when payments are received from these loans, they are recycled back into the program, allowing us to serve more families. Research The three Twin Cities MFPP sites contract with the Wilder Research Center to provide ongoing data about the program services and outcomes. Research on the cost effectiveness of foreclosure prevention has been conducted by the Family Housing Fund. For details: http://www.fhfund.org/Research/mfpcover.htm Applying for MFPP The Mortgage Foreclosure Prevention Program (MFPP) is here to help homeowners address the problems they are having making their mortgage payments. The MFPP staff works with them to determine their immediate needs, and together develop a plan to help meet those needs. The primary program services of MFPP include information and referral services, financial management, and advocacy on the applicant's behalf with lenders and/or mortgage company. In order to be eligible for the program, the applicant must be a homeowner and resident of South or Southeast Minneapolis. (South of a line drawn by Interstate 394 to Wayzata Boulevard to Hennepin Avenue.) In addition, they must be committed to solving their financial problems with long-term solutions. • What to expect from MFPP?