To help homeowners avoid foreclosure, states and cities have been launching various initiatives since the foreclosure crisis began last year. They have been creating and implementing programs such as free foreclosure prevention workshops, creation of mandatory mediation conferences and door-to-door distribution of foreclosure prevention flyers.
Among recent foreclosure prevention programs are those carried out by officials and community advocates in Idaho, South Carolina and Michigan.
While South Carolina is not as battered as foreclosure-hit states, it has been pursuing projects to prevent further foreclosures because of the rising foreclosure filings in the state, as seen in a recent foreclosure report for the third quarter. It had nearly 7,600 foreclosure postings, with one of every 268 of its houses notified of foreclosure.
Idaho, meanwhile, is fifth in the U.S. in foreclosure rate, with one in 97 of its residential units in foreclosure and Michigan is eighth in foreclosure rate, with one in 122 its houses notified of foreclosure.
One of Idaho’s programs is the one launched by Idaho Attorney General Lawrence Wasden. His office published two downloadable handbooks: Foreclosure Prevention and Foreclosure Scams: How to Tell the Difference and Buying a Home.
The handbooks are full of information but are easy to read. They are also comprehensive, including all programs to avoid foreclosure, such as federal foreclosure prevention programs and lender modification programs. They also provide information on the foreclosure process in Idaho, on common mortgage schemes and fraud laws in Idaho.
In Charleston, South Carolina, the nonprofit Homeownership Resource Center held an event called Hope for Homes in the city’s convention center to help homeowners manage their finances and save their houses from foreclosure. Homeowners presented their loan documents, bills and pay slips to lawyers and federal counselors so their situation can be analyzed and be advised on further actions to do.
Debbie Kidd, head of Family Services that run the resource center, said that the recent event resulted in fewer people seeking assistance, but the number of homeowners going to the resource center has been rising. She said that the center is handling around 1,500 active distressed cases and that they have been resolving problems within days or months, depending on negotiations with lenders.
In Michigan, distressed homeowners are being helped by the Michigan Foreclosure Prevention Project, the State of Michigan Save the Dream program and the United Way Project.
To get help to avoid foreclosure in Michigan, a troubled homeowner just needs to call a nonprofit housing counselor or a local legal aid officer.