Foreclosure Prevention Program by fionan


									Government sponsored programs
 An overview of considerations when
  initiating a County-run Foreclosure
  Prevention program w/various

       Mark Wiseman – Director, Cuyahoga County
        Foreclosure Prevention Program
       216.443.7461
Foreclosure Prevention
 Where the heck did the County Go?

     Mark Wiseman, Director
     Cuyahoga County Foreclosure Prevention
     216.443.7461
Causes of problem
 Community specific
   Predatory lending
   Home Improvement Fraud
   Economy
   Flipping
   Refusal on part of lenders to accept
    deeds in lieu
   Workout issues
Overall premises of program
 Borrowers don’t realize the need to
  contact lender
   Freddie Mac study
 Practical reasons for ostrichization
   Collectors v. loss mit
     Practical help not avail until borrower
      seriously delinquent
   Workability issues
 Counselors provide a real benefit
Overall Premises (2)
 Borrowers can be educated to make
  the proper decisions
 Predatory lending exists
 Gov’t can be educated about their
  role in stopping Fraud
   Follow up on building permits
   Educate homeowners
   Attack fraudulent actors
Prep work necessary for program
 Agency assessment
   Site visits/self-appraisals
   Funds available v. anticipated needs
 Raise money
 Knowledge of all players in
 Knowledge of Bad guys, Schemes,
  Problem products
Prep Work (2)
 Financial partners/Non-financial
 Gov’t players must work together
 Capitalize on gov’tal experience
  dealing w/counseling agencies
 Put together marketing package
 Credibility in public’s eyes necessary
Special circs that will foster success
 Existence of non-profit community
   Experienced, primed, willing
 Does situation need drastic action?
 Is Gov’t ready to act in a leadership
 What is overall climate?
 Are suburbs involved?
Special circs (2)
 Vacant homes costing money
   One Cuy Cty municipality budgeting >
    $750,000/yr to maintain vacant homes
 Vision, insight and courage on behalf
  of gov’t
   “Predatory lending” not exactly popular
 Local lending community willing to
  take steps
Practical aspects
 Does program need one intake line as
  destination for calls?
 Counseling available to borrowers at
  all phases of the home loan process
 Education at all phases
 Agencies involved in creation of
 Will County operate program v.
  provide information?
Marketing Program
 Must complete groundwork, before
  campaign starts
 Free Media v. Paid Media
 Post cards to high F/C neighborhoods
 Post cards while borrowers might be
 Billboards, TV, Radio
   Freddie Mac “Don’t Borrow Trouble” is
    one example
Who will pay for it
 May be limitations on funds available
  to gov’t agencies
   Cuy Cty – Filing fee increase and
    Treasurer’s funds forbidden
 Lender/Foundation donations
 County available funds
   Block grant funds
   General fund
   TANF funds
General County-run model
 Create link between County gov’t and
  counseling agencies
 Provide information to borrowers
  about F/C process as well
 Encourage borrowers to get
  counseling AND to stay in their
 Use Gov’t influence to lend credibility
  to efforts
General County model (2)
   Create website
   Use direct mailings
   Offer educational programs
   Utilize resources already available
   Counseling is cornerstone of program
 Foreclosure Rescue Scammers
   $ to hire “help to contact lender”
     w/or w/out attorney
   “We buy houses”
   Copy cats
 Still easier to get bad loan, than to
  fact the music
 Counseling costs money
 Culture change takes decades
Lucas County
 Foreclosure Prevention & Intervention
  Task Force
 Borrowers informed about various
  Counseling agencies
 One phone number also touted
 Targeted mailings w/Foreclosure
  Complaints contemplated
Lucas County Webpage
 Located on County Homepage
 Grid of agencies
 Foreclosure timeline, Glossary, FAQ’s
  about F/C process
Franklin County
 Monthly Counseling seminars for
  newly foreclosed upon
 Borrowers informed about various
  Counseling agencies
 Borrower owns counseling from very
 Public/Private Task Force Managing
  program on ongoing basis
Franklin County Webpage
 Located on Treasurer’s webpage
 Grid of lender contacts !
 Foreclosure timeline, Tips, Seminars
Summit County
 New Program
 Creation of a Foreclosure Prevention
 Creation of a mailer to go out w/new
 Still meeting w/community leaders
  and stakeholders
Summit County Webpage
 Located on page for Office of
  Consumer Affairs
 Plan is to have information relating to
  predatory lending and F/C prevention
Cuyahoga County
 Provide one local phone number for
  borrower assistance (United Way)
 Program capitalizes on existing
  network of experienced counseling
 Agencies own model
 County pays agencies for increase in
  capacity caused by calls to 2-1-1
Cuyahoga County Webpage
 Located on County Homepage
 Foreclosure timeline, FAQ’s, process
 Borrower questions answered through
 Standalone website
 Cooperation from other gov’t
 Increased focus on prosecutorial
 Municipalities more willing to
  participate in solution
 Money easier to raise
Government sponsored programs
 An overview of considerations when
  initiating a County-run Foreclosure
  Prevention program w/various

       Mark Wiseman – Director, Cuyahoga County
        Foreclosure Prevention Program
       216.443.7461

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