Housing.com News, Analysis & Opinion: National Foreclosure Prevention Program

It is clear that many local governments have been ill prepared to deal with the social and economic damage foreclosures can inflict on their communities. Local schools (kids) suffer and quality of life issues arise. A study in the Chicago metro area found that each foreclosure costs the municipal governments more than $30,000. This means less money for local social programs that help keep communities together. The research also determined that one foreclosure can reduce the value of other homes on the same block up to 1.5%, making it harder for people to sell their homes at a good price.

It's in the best interests of mortage and loan companies, local, state and federal governments to do what they can to help homeowners facing foreclosure. Unfortunately, no quick fixes exist and the situation could get a whole lot worse before it gets better.

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A national foreclosure prevention program and toll-free hotline (888)-995-4673 has been established to help homeowners who are facing foreclosure. Mortgage and loan companies are adding more 'work out' specialists to help homeowners restructure their loans in an effort to keep them in their homes. Some states, like Ohio, have started funds to help homeowners restructure their loans. Congress is working on proposals to get the Federal Housing Administration to help home owners with ARMs. It is clear that many local governments have been ill prepared to deal with the social and economic damage foreclosures can inflict on their communities. Local schools (kids) suffer and quality of life issues arise. A study in the Chicago metro area found that each foreclosure costs the municipal governments more than $30,000. This means less money for local social programs that help keep communities together. The research also determined that one foreclosure can reduce the value of other homes on the same block up to 1.5%, making it harder for people to sell their homes at a good price. It's in the best interests of mortage and loan companies, local, state and federal governments to do what they can to help homeowners facing foreclosure. Unfortunately, no quick fixes exist and the situation could get a whole lot worse before it gets better.