MICHIGAN'S FORECLOSURE CRISIS ISN'T OVER...

 As of "2015: Michigan, once again, had the second highest number of completed foreclosures in the United States from May of 2014 to May of 2015—46,000. That was, shockingly, 18,000 more foreclosures than my much larger state of California, with our enormous real estate market, experienced in that same time period" (Brown, pg 3, para. 2).

 

If you or someone you know is facing foreclosure, please return to our Home Page and click the "Avoid Foreclosure" tab for more information.

 

PREVENTING FORECLOSURES IN NORTHEN MICHIGAN

ONE FAMILY AT A TIME

Since 2000 we have been working hard to help families avoid foreclosure. To date we have helped more than 1000 households through their crisis.

 

HOUSING COUNSELING INCREASES HOME RETENTION RATES

According to the U.S. Department of Housing and Urban Development (HUD),

There is strong evidence that housing counseling can be an effective intervention in helping distressed homeowners avoid foreclosure. A report by Temkin et al (2014) sponsored by the Urban Institute reviewed outcomes associated with 240,000 loans that received counseling under the National Foreclosure Mitigation Counseling program. Counseled clients were 2.83 times more likely to receive a loan modification, and 70% less likely to redefault on a modified loan. Counseled clients had modifications that saved them $732 per year compared to modifications given to non-counseled borrowers (HUD, 2014, pg. 1).

A study of the two-year loan performance of over 18,000 pre-purchase counseling clients from the NeighborWorks America’s network of counseling agencies finds that those counseling clients are one-third less likely to become 90+ days delinquent in the two years since obtaining their loan than a matched comparison group of similar borrowers who did not receive prepurchase counseling from NeighborWorks® America agencies (Mayer and Temkin, 2013). The study findings hold true for borrowers regardless of loan origination year (October 2008 through September 2009) and for both borrowers who are first-time homebuyers and those who are repeat homebuyers (HUD, 2014, pg. 2).

 

References

Brown, M. (2016). Updated Foreclosure Outlook: A snapshot of Michigan and the nation. Michigan Foreclosure

Task Force (MFTF). Message to Lorray Brown, Angela Tripp, and Bob Gillett. 13 Mar. 2016. Received on

May 2016 from Email.

HUD (2014). Housing counseling works: Sustainable homeownership. Retrieved on May 5, 2016 from

http://portal.hud.gov/hudportal/documents/huddoc?id=OHC_COUNSELINGWORKS1214.pdf

 

  

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