Foreclosure prevention counseling saved more than $260 millionMore than 3,700 foreclosures were prevented in Minnesota last year, saving homeowners, lenders, neighborhoods and local governments more than $260 million, according to a study recently released by the Minnesota Homeownership Center.
More than 3,700 foreclosures were prevented in Minnesota last year, saving homeowners, lenders, neighborhoods and local governments more than $260 million, according to a study recently released by the Minnesota Homeownership Center.
The report, titled “2011 Foreclosure Counseling Program Report,” analyzed information collected from homeowners seeking foreclosure counseling, as well as outcomes from the Homeownership Advisors Network, Minnesota’s statewide network of housing counselors.
Last year, more than 10,000 Minnesota families received foreclosure prevention counseling from a homeownership advisor, while in Clay, Douglas, Grant, Pope, Stevens, Traverse and Wilkin counties, 215 households received these free services.
Information from the National Foreclosure Mitigation Counseling Program has shown that consumers receiving a loan modification from their lender while working with a homeownership advisor paid, on average, $176 a month less than non-counseled clients. In Minnesota, this translates to more than $175,000 in additional direct savings for struggling families statewide and $6,335 for West Central Minnesota Communities Action families.
Data from the Minnesota Homeownership Center shows that the state is slowly recovering from the foreclosure crisis. In 2011, households receiving a preforeclosure notice declined by almost 24 percent from 2010, completed foreclosures declined by 17 percent and households requesting foreclosure counseling also declined.
Minnesota experienced 21,298 foreclosures in 2011 and while that number is slowly declining, tens of thousands of families continue to struggle with their finances during this sluggish economic recovery.
The Minnesota Homeownership Center will continue providing free counseling and support to homeowners seeking help in managing their mortgage. The services are available for free through 26 nonprofit partner agencies covering all of Minnesota.
West Central Minnesota Communities Action, Inc. is dedicated to reducing the effects of poverty and helping people to achieve self-sufficiency and improving the quality of rural life. For more information on the programs offered by West Central, visit www.wcmca.org.
The Minnesota Homeownership Center promotes and advances successful homeownership in Minnesota. For more information, visit www.hocmn.org.