John Rebchook is a former Rocky Mountain News reporter with more than 30 years of experience in writing and communications... HUD-approved housing counselors with the Adams County Housing Authority have prevented more than $370 Million worth of mortgages from foreclosure sale since the fall of 2006, according to an analysis released today.
Since October 2006 when the Adams County Housing Authority joined in a statewide foreclosure prevention effort, local housing counselors have helped 2,000 clients avoid foreclosure in some capacity. The $370 million dollar volume is based on an average of $188,349 per loan. That is almost 10 percent of the $4 billion in mortgages saved since the Colorado Foreclosure Hotline, 1-877-601-HOPE, was launched.
Cost-effective solution
Executive Director Don May today shared the impact to the local economy with his housing counseling team.
“The team of housing counselors we have here in Adams County have been working diligently with homeowners across the county and with lenders across the country to insure the impact from this current foreclosure crisis is reduced as much as possible,” May said. Not only is $370 million a big number, but it is cost-effective, as the cost of the program is typically less than $300 per homeowner, May said.
“Knowing that the costs of this foreclosure prevention program can be leveraged to net such an amazing rate of return is an important rebuttal to those who would say let the homeowners fend for themselves,” May said.
Homeowners in Adams County can receive free housing counseling to avoid foreclosure from the Adams County Housing Authority either through a bi-weekly workshop or through individual counseling.
$4 billion savings statewide
In $4 billion overall savings, including the $370 million in Adams County, are important to the overall housing market, as providing important social and psychological benefits, said economist Patty Silverstein.
“Assuming that, indeed, these numbers are correct, I think that the impact on the entire metro region economy is quite significant,” said Silverstein, principal of Development Research Partners in Littleton. “First, it has helped to keep our home prices relatively more stable than in other parts of the country. But beyond that, it is just good for the overall economy to keep people in their more and not have them lose it. It plays into everything from the individual family’s psyche to helping them re-allocate their spending patterns. If they can keep their home out of foreclosure, they can remain productive contributors to the economy. How you put a value on that is hard to measure. But it certainly helps the overall market remain stable.”
Foreclosures infect like a fast-moving virus
When homes fall into foreclosure, it not only hurts individual households, but the homes around them, which can bring down the value of entire neighborhoods. Empty homes can become magnet for crime and graffiti, for example.
“Certainly, if someone loses their home in foreclosure, there are lots of negative multiplier impacts,” Silverstein said. “I’m not sure you can say that is moves you into a positive realm as far as multipliers if their homes do not go into foreclosure. I think it is more of a case of maintaining one’s positive momentum.”
Advice free to consumers
U.S. Department of Housing and Urban Development–approved housing counseling agencies,such as the Adams County Housing Authority, offer free advice for homeowners who are facing financial difficulty and are concerned about losing a home to foreclosure. Housing counseling uses solution-based methodology to find the most sustainable option for each individual homeowner, including loan modification; short sale; forbearance and repayment plans; and other potential workouts.
Housing counselors also assist borrowers in communicating with mortgage companies regarding hardship and potential workout options. Many national lenders have given housing counselors at the Adams County Housing Authority special phone numbers to call when they have a client who needs their case escalated beyond general customer service.
For more information on the Adams County Housing Authority, visit www.adamscountyhousing.com.
Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865
