Raise Awareness
Surveys show many at-risk homeowners often fail to seek help. They may be embarrassed or don't know where to turn. Stress can make dealing with credit problems even harder. Community leaders serve a crucial role by helping consumers find quality housing counselors at the first sign of trouble.
The U.S. Department of Housing and Urban Development (HUD) maintains a database of HUD-approved counseling agencies. Additional information, including financing options, can be obtained from the Federal Housing Administration.
Community leaders can also reach borrowers by sponsoring homeownership events, public service announcements, and brochures and websites.
Build Partnerships
One important way to strengthen foreclosure outreach is to build strong partnerships with existing state and local coalitions and task forces. The Federal Reserve Bank of San Francisco has worked in partnership with local organizations to establish local task forces within the Federal Reserve's 12th District. If there are no existing coalitions or task forces in your area, you can start one by reaching out to grassroots and faith-based groups, legal aid offices, housing counseling organizations, community development organizations, and city and state consumer protection departments.
Host Homeownership Events
Conducting foreclosure prevention workshops and/or default clinics in community locations such as schools and public libraries has been proven successful in helping borrowers avoid foreclosure. There are at least two different models of foreclosure prevention workshops: the mitigation workshop and the default clinic.
HOPE NOW Homeowner Preservation Workshops are typically held in large metro areas. They benefit from a national partnership with NeighborWorks America and an alliance with more than 25 lenders to allow borrowers to meet with loan servicers and housing counselors.
Community Foreclosure Mitigation Workshops are typically hosted by a local coalition or task force in a meeting place located near an area of concentrated foreclosure activity. Participating loan servicers send invitations to their delinquent borrowers in area ZIP codes. Local municipalities post notices of the workshops on their websites and in their public facilities.
Local nonprofit counselors are on site to counsel borrowers and assist any borrowers whose lenders are not present. In most cases, lenders and servicers are willing to participate in a summit that is well-designed and well-marketed. Generally a local foreclosure coalition or taskforce will coordinate efforts to provide the meeting space and marketing for the event. It is important to be aware that these workshops are already taking place across the country and one may be scheduled in your community that you can support. Freddie Mac maintains a national calendar of consumer outreach events. To receive the most recent version of this calendar and add your local events, e-mail borrower_outreach@freddiemac.com or view the public version of the calendar on-line.
Default Clinics are often hosted by nonprofit credit/housing counselors as a way to triage distressed borrowers and streamline the default counselors' time. This model helps the clients self-select the appropriate assistance needed. Family Services of Charleston, South Carolina has put together a useful presentation on how to set up a default clinic.
Reach Out to Consumers
Community leaders are employing many direct approaches to reach troubled homeowners, making use of information and materials available from local and national organizations:
Public Service Announcements (PSAs)
Mailings, Flyers and Press Releases
Public Television Partnerships
- The Economy: Facing the Mortgage Crisis
- Weathering the Financial Storm
Access National Resources
A number of national organizations and government agencies maintain rich informational websites to assist communities and consumers in dealing with foreclosure issues, including prevention, mitigation, counseling, loan modifications, neighborhood stabilization and foreclosure-rescue scams.
Enterprise Community Partners: Is a national nonprofit with more than 25 years of experience in the community development and affordable housing field.
Local Initiatives Support Corporation: Is a national nonprofit that helps local organizations access national resources and expertise.
NeighborWorks America: Was created by Congress to provide financial support, technical assistance and training for community-based revitalization efforts. It supports a wide range of programs:
The Homeownership Preservation Foundation: Provides information and videos that explain alternatives to foreclosure and operates a national hotline—888-995-Hope (4673)—available in both English and Spanish. Callers can be referred to local nonprofit counseling assistance.
HOPE NOW Alliance: Is a national alliance of more than 50 lenders, loan servicers and counseling organizations dedicated to preserving homeownership and minimizing foreclosures.
- HOPE NOW members have agreed to a uniform set of procedures and guidelines to increase outreach to borrowers.
- HOPE NOW also partners with NeighborWorks America to conduct homeowner workshops.
Making Home Affordable: The Obama administration has introduced a comprehensive Financial Stability Plan to address problems at the heart of the crisis and help make monthly mortgage payments more affordable for troubled homeowners.
Office of the Comptroller of the Currency: Provides consumer and community information and includes sample public service announcements for radio.
The Federal Deposit Insurance Corporation (FDIC): Provides consumers and community foreclosure assistance and links to foreclosure rescue and loan modification scam awareness resources.
The Federal Reserve Board of Governors: Provides foreclosure-help resources to both consumers and communities. It also connects with all 12 Federal Reserve Banks.
U.S. Department of Housing and Urban Development: Provides links to consumer resources, government programs and government-approved, nonprofit counseling agencies.
Identify Foreclosure Alternatives
Identifying and understanding the alternatives to foreclosure can help prevent problems before they occur or significantly reduce the pain. The government implemented a major program in 2009 to encourage loan modifications. Local housing counselors are good sources for helping consumers find options. Just understanding the different terms can guide consumers to the right course of action.
Foreclosure Rescue/Loan-Modification Scams
|
