INFORMATION 2PUBLIC OUTREACH
Staff continues to communicate the city's foreclosure efforts to the community as time
permits. Below is a summary of some of the initiatives which have taken place over the past
four years:
MN Home Ownership Center (NINHOC)
• HRA partnered with in October of 2008 to create and distribute informational
materials regarding free foreclosure prevention assistance and resources to various
businesses, organizations and churches in the community. Resources are mailed to
local lenders, non-profits, realtors and churches periodically throughout the year.
• Ed Nelson, MNHOC, provides presentations to the HRA periodically regarding
foreclosure prevention and foreclosure scams
Cable Channel
• Several different public service announcements have been created and play
periodically on Elk River Tv12.
• Residents are encouraged to contact city hall to report a vacant or foreclosed home
Website
• Staff has created a link on our city's Website (www.ci.elk-river.mn.us/housing) to
promote not only foreclosure prevention initiatives, but information for homebuyers
and renters as well
The Current
• Articles regarding general foreclosure prevention are published periodically in Elk
River's residential newsletter
Educational Seminars
• From 2009-2011, staff held and presented at four community foreclosure forums to
educate the public about the initiatives and foreclosure scams
ATTAC M E NTS
• Summary of foreclosures, 2006-present (per internal tracking)
• MNHOC press release re: foreclosure prevention counseling
ELK RIVER
FORECLOSURES 2012 2011 2010 2009 2008 2007 2006 TOTAL
Janua 14 13 20 14 26 9 6 .102.
Februa 15 4 27 20 22 10 4 102
March 6 17 35 12 17 7 4 98
A ril 13 14 18 11 12 4 7 79
Ma 18 20 16 22 19 6 101
June 12 32 12 22 20 14 112
Jul 16 21 22 26 14 8 107
Au ust 15 17 19 19 13 6 89
Se tember 13 16 12 16 16 5 78
October 9 12 17 20 20 7 85
November 14 12 12 14 26 6 84
December 11 7 13 13 18 13 75
Total 48 156 237 180 229 176 86 1112
OF COUNTY
TOTAL
24%
25%
31%
26%
25%
27%
24%
26%
SHERBURNE
COUNTY
FORECLOSURES
2012
2011
2010
2009
2008
2007
2006
January 60 41 79 61 95 47 19
Februa 47 35 72 72 77 33 20
March 48 59 97 44 82 45 20
April 49 70 69 49 66 45 21
Ma 67 69 59 82 72 26
June 57 80 63 87 52 31
Jul 55 63 75 100 55 48
Au ust 55 17 45 60 42 35
Se tember 46 72 55 66 53 33
October 33 59 82 63 71 32
November 56 60 51 68 86 30
December 40 35 47 61 57 38
Total 204 614 772 703 907 658 353
402
356
395
369
375
370
396.
254
325
340
351
278
4211
~ _E'~"
Contact:
Ed Nelson, Marketing & Communications Manager
Minnesota Homeownership Center
651-659-9336 x 104 - ed@hocmn.org
Foreclosure Prevention Counseling
Saved Minnesota Over $260 Million in 2011
More than 3,700 Foreclosures Prevented Last Year
St. Paul, Minn. (May 24, 2012) -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 released today by the Minnesota Homeownership Center. The report, titled "2011
Foreclosure Counseling Program Report," analyzed information collected from homeowners seeking
foreclosure counseling and outcomes from the Homeownership Advisors Network, Minnesota's
statewide network of housing counselors.
Last year more than 10,000 Minnesota families received free foreclosure prevention services from a
Homeownership Advisor. Of the closed cases where outcomes are known, 60% of these households
were able to avoid foreclosure
"The best advice we can give a homeowner that is struggling with mortgage payments is to speak with a
Homeownership Advisor as quickly as possible. These professionals are providing meaningful outcomes
for Minnesota homeowners, their communities, lenders and local governments," said Julie Gugin,
Executive Director of the Minnesota Homeownership Center. "We know that foreclosure counseling
works, and are proud to announce that more than 3,700 Minnesota families remain in their homes
today because of our counselors' work."
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 over $175,000 in
additional direct savings to struggling Minnesota families.
Data from the Minnesota Homeownership Center is showing that the state is slowly recovering from the
foreclosure crisis. In 2011, the number of households receiving a preforeclosure notice declined by
almost 24% from 2010, the number of completed foreclosures (Sheriffs Sales) declined by 17% and the
number of households requesting foreclosure counseling also declined, although by a smaller margin of
16%.
CONTINUES
The study also provided a glimpse into the demographic and financial circumstances of struggling
homeowners who sought help from mortgage counselors. According to the experiences of those
seeking counseling in 2011, personal, mortgage and financial struggles are converging on many
homeowners in Minnesota. The experiences reported by home owners offer new insights, such as:
• Home owners are balancing mortgages on less income. The majority of home owners seeking
help faced either a reduction in income (36%) or a total loss of income (24%) since first taking
out their mortgage. These figures are consistent with the income challenges reported by home
owners in previous years.
• Mortgages have become unaffordable for many. 57% of home owners seeking counseling
dedicate more than 30% of their monthly income to their mortgage - a recognized standard of
an unaffordable mortgage. Twenty-Two percent of home owners reported dedicating more
than half of their income to their mortgage payment.
Minnesota experienced 21,298 foreclosures in 2011 and while the number of foreclosures 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.
"As the economy and mortgages continue to falter, the Center will continue reaching out to
homeowners across the state to let them know about this free resource that they can trust," added
Gugin, who also cautioned struggling homeowners to be careful about who they work with to help avoid
foreclosure, "No one who is struggling with mortgage payments should have to pay to get help, and
never sign anything you don't fully understand. Homeownership Advisors are available throughout the
state to help."
###
The Minnesota Homeownership Center promotes and advances successful home ownership in
Minnesota. Since 1993, The Center has worked to achieve its mission by empowering a network of more
than 50 organizations to provide education and counseling services to potential home buyer and home
owners working to sustain their mortgages. For more information, visit www.hocmn.org.