Virginia Fights Foreclosures

For 2009, Virginia ranked 16th among all states in foreclosure rate, an increase of 6.36% from the year before. Nationally, 2009 was the worse year for foreclosures in US history, with 2.8 million property owners receiving a foreclosure notice.

The worst area is the outer ring of Washington, DC due to the home price volatility of a big price run up and collapse in recent years. In the Richmond area prices have been more stable. Most of Virginia’s problems are concentrated in the subprime loan market, although the spillover does produce a negative impact on the rest of a community.

• In June 2009 Governor Timothy M. Kaine announced the award of $17.5 million in Neighborhood Stabilization Funding for communities hit hardest by foreclosures so that seized homes can be resold to low-to-moderate income families.
• Earlier this year the Virginia General Assembly passed HB 2261 to expand the Consumer Protection Act to fight foreclosure prevention scams.  The law prevents mortgage modification companies from accepting fees in advance for their services.
• In 2008 the Commonwealth passed SB 797 to give its residents a one month foreclosure moratorium.
• Virginia participated in a national settlement with Countrywide Financial Corporation to provide projected mortgage relief of $212.8 million for more than 8,900 homeowners in the Commonwealth.

Virginia’s Foreclosure Prevention Task Force is taking the lead in preserving local home ownership. The group’s members are drawn from both the private and public sector, including the Commonwealth’s Secretary of Commerce and Trade and the Executive Director of the Virginia Association of Mortgage Brokers. The task force  is charged with the following:

• Collecting foreclosure data and plotting a prevention strategy.
• Locating educational resources for homeowners and publicizing them.
• Recommending specific programs.
• Analyzing the Commonwealth’s laws and rules to recommend appropriate changes.

The group has facilitated the establishment of five Outreach Mortgage Clinics for distressed homeowners in Richmond, Tidewater, Roanoke, Woodbridge, and Chantilly. It has administered the training of 341 Mortgage Counselors across the state. The group produced a series of public service announcements in multiple media and established the Virginia Foreclosure Prevention Task Force website.

The task force urges Virginians to:

• Face up to the problem.
• Contact a housing counselor. To find a recommended Virginia Housing Counselor in your area, click on Housing Counselor Search.
• Open and respond to all mail from your lender.
• Know your mortgage rights. Review your original loan documents. Learn the foreclosure laws and time frames for action.
• Understand foreclosure prevention options. MortageOutreach.org provides a thorough, easy to understand explanation.
• Prioritize your spending. After health care, saving your home should be your first priority. Cut everything else ruthlessly. Put your budget into crisis spending mode.
• Use your assets.  Sell off whatever you can to stay afloat.
• Avoid foreclosure prevention companies that charge fees. Your recommended housing counselor will provide similar services for free, or turn to a company paid by the mortgage servicer like Mortgage Outreach Services.
• Don’t lose your house to foreclosure recovery scams. Never sign a legal document without reading and understanding all the terms.
• Don’t ignore the problem.

The longer you wait to get help, the harder it will be for you to dig out. Take action now.

If you are unable to reach your servicer or local state program, or if you would like additional assistance in this process contact Mortgage Outreach at 1-866-408-0420. Mortgage Outreach works directly with many servicers to help find solutions for borrowers that are struggling to keep up with their payments.