Foreclosure Prevention Programs Around the Nation

Foreclosure Prevention Programs Around the Nation

Many state and local governments have created foreclosure prevention programs that keep people in their homes.  These programs are as varied as the state and local governments that create them, but fall primarily into three categories: mediation programs, support for housing counselors, and loan programs

Mediation Programs

The National Consumer Law Center has created a comprehensive report regarding state mediation programs around the nation. 

 http://www.nclc.org/foreclosures-and-mortgages/rebuilding-america.html

This report highlights that an effective mediation program will keep many homeowners in their homes, saving investors and local and state governments the cost of foreclosure.

The National Consumer Law Center lists the states with mediation programs (some are statewide, others are local), classifying them as “supervised” and “unsupervised”:

Supervised:  http://www.nclc.org/images/pdf/foreclosure_mortgage/mediation/summary-programs-supervised.pdf

Unsupervised: http://www.nclc.org/images/pdf/foreclosure_mortgage/mediation/summary-programs-unsupervised.pdf

Housing Counselors

Housing counseling is also an effective method for mitigating foreclosures.  The Urban Institute has recently issued a report highlighting the effectiveness of housing counseling, and the National Foreclosure Mitigation Counseling program in particular. 

http://www.urban.org/UploadedPDF/412492-Has-Foreclosure-Counseling-Helped-Troubled-Homeowners.pdf

The report explains how housing counselors have helped homeowners stay current on their loans, cure defaults, negotiate with lenders, and ultimately stay in their homes. 

Loan Programs

Several states have loan programs that help people avoid foreclosure.  Normally, these programs loan money to homeowners who are behind on their mortgage payments or are in foreclosure, but are likely to be back on track and making payments soon.  States with loan programs include:

  1. North Carolina: Foreclosure Prevention Fund and State Home Foreclosure Prevention Project
    1. http://www.ncforeclosurehelp.org
    2. Quarterly Reports: http://www.ncforeclosurehelp.org/hardest_hit_funds.aspx
      1. These official reports explain the activities of the project.
  2. Delaware: Delaware Emergency Mortgage Assistance Project
    1. http://www.destatehousing.com/HomeOwnership/hb_demap.php
    2. News Articles:
      1.  http://www.loansafe.org/delaware-agencies-come-together-to-help-homeowners
        1. Explains several Delaware foreclosure prevention programs
      2. http://www.wgmd.com/?p=30842
        1. Describes DEMAP
  3. Maryland: Homeowners Preserving Equity (HOPE) Program
    1. http://mdhope.dhcd.maryland.gov/Pages/Home.aspx
    2. News Article:
      1. http://www.bizjournals.com/baltimore/stories/2009/07/20/daily62.html
        1. “Maryland’s Home Ownership Preserving Equity (HOPE) initiative, established in 2008, has helped nearly 23,000 consumers and more than 6,800 homeowners avoid foreclosure, according to government officials.”
  4. Massachusetts:
    1. MassHousing Refinance Loans: https://www.masshousing.com/portal/server.pt?mode=2&uuID=%7B053B0514-F267-4944-B7BF-7C396F32102F%7D
      1.  News Article: http://www.boston.com/business/globe/articles/2007/07/11/state_to_refinance_troubled_mortgages/
        1. Introducing the program.
    2. Boston Community Capital SUN Initiative:                                                               i.      http://www.bostoncommunitycapital.org/what/sun-initiative
      1. News Articles:
        1. http://www.riskheadquarters.com/bernanke-boston-community-capital-%E2%80%98making-a-difference%E2%80%99/
          1. Bernanke: Boston Community Capital ‘Making A Difference’.
        2. http://finance.yahoo.com/blogs/daniel-gross/mortgage-modification-one-non-profit-lender-doing-help-150316843.html
          1. Explains the program, includes video that discusses the program.
  5. Illinois: Illinois Hardest Hit Fund
    1. https://www.illinoishardesthit.org/
    2. News Article: http://articles.chicagotribune.com/2012-01-25/business/chi-fund-to-hardesthit-homeowners-distributes-45m-in-4q-20120125_1_illinois-homeowners-mortgage-servicers-mortgage-payment-assistance
      1. This program has distributed $4.5 million in one quarter.