Foreclosures Surge Again ~ New Foreclosure Classes Added

Foreclosure numbers decreased in the final quarter of 2009 due to a moratorium on Sheriff sales.  But when the moratorium lifted the first of the new year the numbers surged again.  Currently ICCF has 288 foreclosure cases.  Each fulltime foreclosure counselor is carrying a caseload of 80 families and the remaining cases are being handled by other Housing and Family Services counselors.

ICCF has adapted to the surge by offering foreclosure classes twice weekly.  All inquirers for foreclosure help are asked to register for one of these day or evening classes.  Two instructors are present to share basic information about the foreclosure process and to answer any questions from the group.  Following the class each participant has the opportunity to meet with a counselor to assess what additional help they need.  Individual counseling is available as long as it is required.  Counselors work with the families to determine their best options and with the mortgage holders to arrange for alterations to the mortgage terms where possible.

Families who have not received foreclosure notices, but who are worried about their ability to make their mortgage payments can also attend the classes. 

Foreclosure Program at Inner City Christian Federation

ICCF has been providing foreclosure counseling as part of a total housing counseling program since 1995.  Pre-purchase counseling and home ownership education have been the pre-eminent elements of the program, but foreclosure counseling has taken more time as the mortgage industry problems mushroomed in the past two years.  Foreclosure intervention is offered by a limited number of housing agencies.  ICCF’s years of experience have established a proven track record and an excellent reputation.  This has brought many families from Kent County and several neighboring counties to our doors. 

When families come to us for help with foreclosure, the presenting issues are

• employment related (job loss, reduction in hours, loss of income),
• family related (separation or divorce),
• medical problems that have complicated their lives with a reduction in work hours or an increase in expenses, or
• financial challenges involved with an Adjustable Rate Mortgage.

What is our strategy for dealing with foreclosure inquiries?

• First we do an intake interview and put the information in our database. If appropriate, we invite the family to a foreclosure class as soon as possible (Some families need immediate assistance and do not take the class).  With two classes each week, it is quickly scheduled. If a sheriff sale is imminent, the family is scheduled with a counselor immediately.
• In our initial discussion with the family after they attend class, we ask if the family has basic needs that are not being met.  Do they have food and sufficient clothing?
• Further questions are
  • Was there a crisis or serious event that caused the mortgage delinquency?  If so, was that situation resolved or overcome?
• What does the family want to do – stay in the house, or let go of the house by way of the least damaging process?
• A budget is completed to check affordability.
• Can they really afford the mortgage they have?  If not, face the hard answer.  If it is affordable and the family wants to stay, we begin negotiations to problem solve.
• Questions raised outside the family:
  • Are there funds available in the community to help with the problem?
  • Is the mortgage servicer willing to make any concessions for the sake of resolution?
• We keep making sure the family is OK.  We do financial education and we revisit the plans.  We settle on a final plan and write letters explaining the details (hows and whys).
• We work on whatever issues the family is facing.

Our success rate depends on how you define success.  At least 60% of the families who come to us are able to keep their homes as a result of our intervention.  Another 15% are too far along in the process for intervention or cannot afford to save their home.  The remaining families want to sell or give “deed in lieu of” foreclosure and we can help with that.  If success is defined as helping families get through a difficult time, we try our best to do that 100% of the time.

We may not hear from the families again after their foreclosure crisis.  But families know we are always available to them, should they need us.  We also give them information about and an invitation to attend our financial management classes, home maintenance and home management education. 

Our new classes meet twice a week and two instructors are present at each class.  Each class is two hours long followed by up to an hour of private meetings with individual families.  We provide childcare whenever possible to help parents attend the classes.  Present enrollment averages 5-12 people in each class. We currently have three staff working fulltime on foreclosure prevention and several other staff members working part time on foreclosures.

Our faith-based mission compels us to help all those who come to us to the best of our ability.  We count on those who support our mission to contribute funds to help us do the work.  Foreclosure is not just the problem of the families in mortgage arrears.  Empty homes hurt our neighborhoods.  Clusters of empty homes invite crime and lower the values of nearby homes.  It will take the effort of the whole community to mitigate the results of foreclosures.

Inner City Christian Federation
920 Cherry Street SE
Grand Rapids, MI 49506

Phone: (616) 336-9333
Fax: (616) 336-9323

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