property records education partners february 9, 2012 foreclosure mitigation
TRANSCRIPT
![Page 1: PROPERTY RECORDS EDUCATION PARTNERS FEBRUARY 9, 2012 Foreclosure Mitigation](https://reader035.vdocuments.us/reader035/viewer/2022062516/56649dc75503460f94abce40/html5/thumbnails/1.jpg)
PROPERTY RECORDS EDUCATION PARTNERS
FEBRUARY 9, 2012
Foreclosure Mitigation
![Page 2: PROPERTY RECORDS EDUCATION PARTNERS FEBRUARY 9, 2012 Foreclosure Mitigation](https://reader035.vdocuments.us/reader035/viewer/2022062516/56649dc75503460f94abce40/html5/thumbnails/2.jpg)
Foreclosure Sales
Housing Link, 2011 data projections only
![Page 3: PROPERTY RECORDS EDUCATION PARTNERS FEBRUARY 9, 2012 Foreclosure Mitigation](https://reader035.vdocuments.us/reader035/viewer/2022062516/56649dc75503460f94abce40/html5/thumbnails/3.jpg)
Foreclosure Trends
During 2008, a large portion of the sales were related to inflated housing values, subprime lending, and exotic mortgages
Circumstances in 2012 are related to long-term unemployment and underwater mortgages
Washington County, percent involved in foreclosure: In 2010, 1.55% of residential properties In 2006, 0.5% of residential properties In 2005, 0.33% of residential properties
![Page 4: PROPERTY RECORDS EDUCATION PARTNERS FEBRUARY 9, 2012 Foreclosure Mitigation](https://reader035.vdocuments.us/reader035/viewer/2022062516/56649dc75503460f94abce40/html5/thumbnails/4.jpg)
Cities with Highest GainsCities with Highest Gains
Cities with Greatest DropsCities with Greatest Drops
Moorhead $197,847+24.7%Excelsior $508,437+21.7%Princeton $159,826+11.4%Prior Lake $282,139+10.7%Cambridge $126,335+10.0%
Virginia $68,033 -25.4%Mound $300,091-22.3%Forest Lake $144,983
-18.3%Wayzata $423,967-17.2%Becker $146,018-14.2%
Homes Sales Prices
RealtyTrac, December 2011
Average MN residential sale price = $200,181Average MN residential foreclosure sale price = $144,265Price reduction of 27.94%
![Page 5: PROPERTY RECORDS EDUCATION PARTNERS FEBRUARY 9, 2012 Foreclosure Mitigation](https://reader035.vdocuments.us/reader035/viewer/2022062516/56649dc75503460f94abce40/html5/thumbnails/5.jpg)
Housing Counseling Services
Regional Partnership Approach The objective of foreclosure prevention
counseling is to work with households to reach long-term solutions that are stable and affordable.
Outreach, Training and Education Borrower workshops, door knocking, libraries, local
media, utility bills, tax statements, direct mail & more. Outreach to information & referral organizations.
![Page 6: PROPERTY RECORDS EDUCATION PARTNERS FEBRUARY 9, 2012 Foreclosure Mitigation](https://reader035.vdocuments.us/reader035/viewer/2022062516/56649dc75503460f94abce40/html5/thumbnails/6.jpg)
Housing Counseling Services
Information about the foreclosure processCustomized plan to address household crisisFinancial counselingMortgage counselingIdentify options for preventing foreclosureAvoiding predatory practices“Smooth Transition” counseling, as needed
![Page 7: PROPERTY RECORDS EDUCATION PARTNERS FEBRUARY 9, 2012 Foreclosure Mitigation](https://reader035.vdocuments.us/reader035/viewer/2022062516/56649dc75503460f94abce40/html5/thumbnails/7.jpg)
Housing Counseling Services
In 2010, Homeownership Advisors Network counseled 12,158 households
66% of counselees able to avoid foreclosure 89% stay in home 11% unable to stay in home
Point when seeking counseling 12% are current on mortgage but anxious 38% are less than 90 days delinquent 41% are over 120 days delinquent
![Page 8: PROPERTY RECORDS EDUCATION PARTNERS FEBRUARY 9, 2012 Foreclosure Mitigation](https://reader035.vdocuments.us/reader035/viewer/2022062516/56649dc75503460f94abce40/html5/thumbnails/8.jpg)
H.A.R.P.
HARP – Home Affordable Refinance ProgramEligibility
Loan through Fannie Mae or Freddie Mac Current on mortgage payments LTV ratio of 125% or less Stable income
Refinance mortgage with a lower interest, fixed rate with 15 or 30 year term
Program ends December 31, 2013Participation by loan servicer is voluntary
![Page 9: PROPERTY RECORDS EDUCATION PARTNERS FEBRUARY 9, 2012 Foreclosure Mitigation](https://reader035.vdocuments.us/reader035/viewer/2022062516/56649dc75503460f94abce40/html5/thumbnails/9.jpg)
H.A.M.P.
HAMP – Home Affordable Modification ProgramEligibility
Loan through Fannie Mae, Freddie Mac, or participating servicer
Unpaid mortgage balance less than $729,750 Mortgage payment greater than 31% of gross monthly
income Unaffordability caused by income or expense change
Modify mortgage with a lower interest rate so monthly payments are 31% of monthly income, term may extend up to 40 years.
![Page 10: PROPERTY RECORDS EDUCATION PARTNERS FEBRUARY 9, 2012 Foreclosure Mitigation](https://reader035.vdocuments.us/reader035/viewer/2022062516/56649dc75503460f94abce40/html5/thumbnails/10.jpg)
H.A.M.P.
Three month trial modificationIf less costly than foreclosure, servicer will
make a permanent modification Interest rate fixed, as low as 2% If below market, adjust up 1% per year after 5th year Capitalize any late fees Defer a portion of the unpaid principal Incentive to pay on time of up to $5,000
Incentives to servicers to participate
![Page 11: PROPERTY RECORDS EDUCATION PARTNERS FEBRUARY 9, 2012 Foreclosure Mitigation](https://reader035.vdocuments.us/reader035/viewer/2022062516/56649dc75503460f94abce40/html5/thumbnails/11.jpg)
Other Initiatives
FHA Short Refinance & FHA2LPHOPE Now loan modification programBank/Service Specific ProgramsNeighborhood Stabilization Program
![Page 12: PROPERTY RECORDS EDUCATION PARTNERS FEBRUARY 9, 2012 Foreclosure Mitigation](https://reader035.vdocuments.us/reader035/viewer/2022062516/56649dc75503460f94abce40/html5/thumbnails/12.jpg)
Progress
962,000 HARP refinances completed1.7 million HAMP trial modifications began910,000 received permanent HAMP modifications$9.9 billion savings in monthly mortgage
payments1.1 million FHA Loss Mitigation interventions2.6 million HOPE Now modificationsNSP: 7,455 new or rehabbed units, 18,245 units
cleared, and 8,494 direct homeownership assistance
December 2011 National Scorecard, Departments of Treasury and HUD
![Page 13: PROPERTY RECORDS EDUCATION PARTNERS FEBRUARY 9, 2012 Foreclosure Mitigation](https://reader035.vdocuments.us/reader035/viewer/2022062516/56649dc75503460f94abce40/html5/thumbnails/13.jpg)
E.H.L.P.
EHLP - Emergency Homeowners’ Loan ProgramEligibility
Substantial (>15%) loss of income Due to unemployment or underemployment Caused by adverse economic conditions or medical
condition
Zero interest forgivable bridge loan Pay arrearages to bring current Maximum 24 months or $50,000 Secured by junior lien Forgiven over 5-year period
![Page 14: PROPERTY RECORDS EDUCATION PARTNERS FEBRUARY 9, 2012 Foreclosure Mitigation](https://reader035.vdocuments.us/reader035/viewer/2022062516/56649dc75503460f94abce40/html5/thumbnails/14.jpg)
E.H.L.P.
Applications were taken in 2011 through lottery
Minnesota awarded 1,786 loans 442 Greater Minnesota 1,344 Metro
Minnesota Housing received 1,231 applications for 840 loans
Loans in process
![Page 15: PROPERTY RECORDS EDUCATION PARTNERS FEBRUARY 9, 2012 Foreclosure Mitigation](https://reader035.vdocuments.us/reader035/viewer/2022062516/56649dc75503460f94abce40/html5/thumbnails/15.jpg)
Proposed Enhancements
Blueprint for an America Built to LastBroad Based Refinancing
Expand HARP to non-GSE borrowers Streamline refinancing
Expand Eligibility of HAMPHomeowner Bill of RightsPilot Sale of Foreclosed Property to
Transition into Rental Housing12 Month Forbearances to unemployed
borrowers
![Page 16: PROPERTY RECORDS EDUCATION PARTNERS FEBRUARY 9, 2012 Foreclosure Mitigation](https://reader035.vdocuments.us/reader035/viewer/2022062516/56649dc75503460f94abce40/html5/thumbnails/16.jpg)
www.wchra.comwww.hocmn.org
www.hud.govwww.housinglink.org
Melissa TaphornDeputy Executive DirectorWashington County HRA
[email protected](651) 458-0936
Resource Links