Foreclosure Counseling Program Report. Prepared by Karen Pederson, MSW, LISW Minnesota Homeownership Center

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1 2015 Foreclosure Counseling Program Report Prepared by Karen Pederson, MSW, LISW Minnesota Homeownership Center

2 2015 Foreclosure Counseling Key Findings 2,141 households served in 2015 Northwest 53 Northeast 243 West Central 86 Central 292 Southwest 90 Southeast 150 1,134: Twin Cities Metro 914: Greater Minnesota 93: Out of state 22% decrease in households served over % of homeowners primary reason for default is loss or reduction in income 78,927 households served since ,808 households avoided foreclosure since ,570 71,665 Foreclosure Trends Demographics 54,569 39,054 28,781 23,092 25,673 23,272 21,298 17,895 11,834 8, ,733 Pre- Foreclosure Notices 7,212 Sheriff Sales $38,000 Median Household Income Median income is up 5% over % have low and very low income (80% or below Area Median Income) 50 Average Age 2

3 Loans & Affordability Loan Type Income Spent on Housing Median Credit Score 9 Prime (= < 8%) loans 46% households Subprime (= >8%) loans spend more than 30% of their income on their monthly mortgage payment 566 Loan Status at Intake 120+ Days Late Days Late Days Late 8% 1 47% Days Late Current 12% 19% Default Reason 0% 10% 20% 30% 40% 50% Loss of Income Reduction in Income Medical Issues Poor Budget Management Skills Divorce/Seperation Increase in Expense Death of a Famiy Member Increase in Loan Payment Business Venture Failed Other 10% 9% 7% 3% 1% 15% 20% 28% 0% 10% 20% 30% 40% 50% 3

4 Demographics & Outcomes Unknown Am Ind./AK Native Multiple 3% 2% No income (3%) Race, Single adult (29%) Asian, 8% 15% Black/African American Race 68% White Household Type Married w/ children (29%) Female-headed single-parent household (15%) Married without children (15%) Male-headed single-parent household (5%) Two or more unrelated adults (5%) Other (2%) Area Median Income 0-50% (41%) 51-80% (30%) % (11%) 100%+ (1) Outcomes 67% Avoided Foreclosure* = 774 households * Based on 1,153 households starting and completing counseling during Resolution Remained in Home Brought Mortgage Current 273 Mortgage Modified 247 Initiated Forebearance Agreement 93 Bankruptcy 46 Mortgage Refinanced 22 Entered Debt Management Plan 3 Partial Claim 2 Rcvd. 2nd Mortgage 1 Unable to Remain in Home Sold Property 64 Pre-foreclosure Sale 15 Executed Deed-in-lieu

5 About the Center The Minnesota Homeownership Center realizes its mission of advancing and promoting affordable, sustainable homeownership in Minnesota by providing the statewide infrastructure for development and delivery of homebuyer education and foreclosure prevention services. The Homeownership Center s centralized approach ensures: A method for ensuring consumer service quality and consistency throughout the state. A one-stop location for consumers and other stakeholders to access valuable, trustworthy homeownership and financial literacy resources, including the operation of the state s foreclosure prevention hotline. A managed, coordinated approach to raising awareness of homeownership issues and trends through public education and outreach. Centralized leadership for the implementation of partnerships with lenders; Realtors; local, state, and federal governments; and other industry professionals. A key aspect of the Center s work is establishing mutually beneficial working relationships with stakeholders in the homeownership arena and advancing successful homeownership through service alliances, campaigns and other efforts. A sustainable base of funding through strong partnerships with government, philanthropic foundations, and the lending and real estate industries. About the Network The Center s members, the Homeownership Advisors Network, provide financial capacity, homebuyer education and counseling and foreclosure services throughout Minnesota. Members contributing to this report are: Anoka County Community Action Program Arrowhead Economic Opportunity Agency Bi-County Community Action Program, Inc. Carver County Community Development Agency City of Saint Paul Department of Planning & Economic Development Community Action Partnership of Suburban Hennepin Comunidades Latinas Unidas En Servicio Dakota County Community Development Agency Inter-County Community Council Lao Assistance Center of Minnesota Lutheran Social Service of Minnesota Neighborhood Development Alliance NeighborWorks Home Partners PRG, Inc. Rochester Olmsted Community Housing Partnership Scott County Community Development Agency Southwest Minnesota Housing Partnership Washington County Housing and Redevelopment Authority West Central Minnesota Communities Action, Inc. Wright Community Action Research and analysis of program delivery, outcomes, and trends. 5