Deadline Fast Approaching for Foreclosure Assistance Program

The number of homes being foreclosed upon in Washington County has decreased by nearly 100 over the last year, but foreclosure is still a grim possibility for many Washington County residents.

The declining number of foreclosed upon homes may not be an indicator of the housing situation improving in the area, said Andrea Brennan, the Deputy Executive Director of the Washington County Housing and Redevelopment Authority (WCHRA).

“It may be a little too early to tell. We're seeing some indication there might be a decline. But we don't know what that means yet,” Brennan said. “We're hearing that lenders are taking a little longer to begin foreclosure proceedings. That might account for some of the numbers declining. We're still at historic all-time high numbers for foreclosures.”

There is good news, though. Help is available.

The WCHRA provides foreclosure prevention counseling, with three trained and certified counselors on staff. The WCHRA is a member of the Minnesota Home Ownership Advisors Network.

“We have entered into some new partnerships with programs that can really help homeowners who are concerned about or facing foreclosure,” Brennan said.

However, the July 22 deadline is rapidly approaching to apply for assistance through the Emergency Homeowners Loan Program (EHLP).

“That program is our big push right now,” Brennan said.

The EHLP (video above) offers zero-interest, forgivable loans to eligible homeowners, who must meet strict eligibility requirements. In order for homeowners to qualify, they must be three months behind on mortgage payments due to unemployment, under-employment or bills due to a medical emergency.

A complete list of the criteria, along with the required pre-application forms and other information on the program are available at the EHLP website. Information and assistance with EHLP is also available by calling 866-422-6466.

“This is one of the first tools available to help unemployed homeowners avoid foreclosure. It is a hand up, not a hand out and will serve as a much needed bridge to keep people in their homes until they can find a job,” said Mary Tingerthal, Commissioner of Minnesota Housing. “I urge people who may be eligible to act quickly and apply for help before July 22.”

Fannie Mae Partnership

In addition to the EHLP, the Washington County Housing and Redevelopment Authority is also participating in a partnership with the Minnesota Home Ownership Center and Fannie Mae. With this partnership, couselors from the WCHRA have direct access to Fannie Mae staff.

“Fannie Mae has actually hired staff to have a physical presence at the Minnesota Home Ownership Center,” Brennan said. “That gives our counselors a direct link with Fannie Mae and the loan modification decision-makers. That results in a faster process for the homeowner.”

Brennan said the Fannie Mae program has not been utilized by many homeowners in Washington County so far. But she believes the “handful of folks” who are now in the process have benefited from the program.

“This is one more tool we provide,” Brennan said. “We just need to get the word out that it is available.”

To find out if a mortgage is owned by Fannie Mae, homeowners may ask their mortgage servicer, check online by using the Fannie Mae Loan Lookup toolor call Fannie Mae at 800-732-6643.

To participate in the Fannie Mae program or set up an appointment with a foreclosure counselor, homeowners can make an appointment with the WCHRA by calling 651-458-0936, ext. 542.

“We encourage anyone in the county who is concerned about foreclosure to contact us,” Brennan said. “If you're worried about foreclosure, it is never too early to get in touch with us.”