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Issue: 3 June/2010
In This Issue
HHF Plan
Loan Modification Scams
NFMC Statistics
Spotlight on Success: Kathy Sandella, Catholic Charitites of Ashtabula County
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Upcoming Events 

June 22

6:00 - 8:00 p.m.

Avoiding Mortgage Deliquency

Hosted By: Home Repair Resource Center

More Information
 

June 22

6:00 - 8:30 p.m.

First Time Homebuyer Class

Hosted By: HomeOwnership Center of Greater Dayton

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June 22

6:00 - 9:00 p.m.

Homebuyer Training Classes

Hosted By: Working in Neighborhoods

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June 22

6:00 - 9:00 p.m.

Keys to Homeownership

Hosted By: Columbus Urban League

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June 23

6:00 - 8:00 p.m.

Home Maintenance Workshops

Hosted By: Homeport Housing Advisory Center

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June 23

5:00 - 7:30 p.m.

Wednesday Evening Homeowner Appointments

Hosted By: ESOP

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June 24

5:30 - 7:30 p.m.

Default/ Foreclosure Workshop & Counseling

Hosted By: MORPC

More Information

 

June 24

9:00 a.m. - 11:00 a.m.

Free Foreclosure Prevention Workshop

Hosted By: WSOS Community Action Commission, Inc.

 

June 24

1:00 - 4:00 p.m.

Free Foreclosure Prevention Workshop

Hosted By: WSOS Community Action Commission, Inc

 

June 30

5:00 - 7:30 p.m.

Wednesday Evening Homeowner Appointments

Hosted By: ESOP

 

July 1

6:00 - 8:00 p.m.

Power of a Personal Budget

Hosted By: Home Repair Resource Center

 

July 5

11:00 a.m. - 1:00 p.m.

Monday Morning Homeowner Appointments

Hosted By: ESOP

 

July 7

5:30 - 8:30 p.m.

HomeOwner Education

Hosted By: MORPC

 

July 8

6:00 - 8:00 p.m.

Creditworthy Equals Choices

Hosted By: Home Repair Resource Center

 

July 8

6:00 - 8:30 p.m.

Financial Fitness Training Class

Hosted By: HomeOwnership Center of Greater Dayton

 

July 8

6:00 - 9:00 p.m.

Homebuyer Training Classes

Hosted By: Working in Neighborhoods

More Information

 

 

July 10

9:30 - 11:30 a.m.

Foreclosure Prevention Seminar and Counseling

Hosted By: Vineyard of Columbus

 

July 12

6:00 - 9:00 p.m.

Homebuyer Education Workshop

Hosted By: Homes on the Hill

 

July 12

11:00 a.m. - 1:00 p.m.

Monday Morning Homeowner Appointments

Hosted By: ESOP

More Information

 

July 13

6:00 - 8:30 p.m.

First Time Homebuyer Class

Hosted By: HomeOwnership Center of Greater Dayton

More Information

 

July 13

6:00 - 7:30 p.m.

Free Forclosure Information Seminar

Hosted By: Legal Aid Society Of Columbus

 

July 13

6:00 - 8:30 p.m.

Homebuyer Education Class

Hosted By: Neighborhood Housing Partnership

 

July 13

5:00 p.m.

Summit East Akron Interfaith Legal Clinic

Hosted By: Community Legal Aid

 

July 13

5:00 p.m.

Trumbull County Counsel and Advice Clinic

Hosted By: Community Legal Aid

 

July 14

5:00 - 7:30 p.m.

Wednesday Evening Homeowner Appointments

Hosted By: ESOP

More Information

 

July 14

6:00 - 7:30 p.m.

Financial Literacy Workshop: Reverse Mortgages

Hosted By: Working in Neighborhoods

 

July 15

6:00 - 8:00 p.m.

Understanding Mortgages & Refinancing

Hosted By: Home Repair Resource Center

 

July 15

6:00 - 8:30 p.m.

Financial Fitness Training Class

Hosted By: HomeOwnership Center of Greater Dayton

More Information

 

July 15

6:00 - 9:00 p.m.

Homebuyer Training Classes

Hosted By: Working in Neighborhoods

 

July 15

5:00 p.m.

Summit Barberton Counsel and Advice Clinic

Hosted By: Community Legal Aid

 
July 17
9:30 - 11:30 a.m.
One-on-One Counseling
 Hosted By: Vineyard of Columbus
 

July 19

6:00 - 9:00 p.m.

Homebuyer Education Workshop

Hosted By: Homes on the Hill

More Information

 

July 19

11:00 a.m. - 1:00 p.m.

Monday Morning Homeowner Appointments

Hosted By: ESOP

More Information

 

July 20

6:00 - 8:30 p.m.

First Time Homebuyer Class

Hosted By: HomeOwnership Center of Greater Dayton

 

July 20

6:00 - 8:30 p.m.

Homebuyer Education Class

Hosted By: Neighborhood Housing Partnership

More Information

 

July 21

5:00 - 7:30 p.m.

Wednesday Evening Homeowner Appointments

Hosted By: ESOP

More Information 
 
Save the Dream Ohio Newsletter
Save the Dream Ohio has launched this monthly newsletter to keep our partners up to date on the latest news about foreclosure prevention in Ohio. This newsletter will include important information about state and national foreclosure news.
 
If you have an item to add to next month's newsletter, would like to ask a question, or would like to offer feedback, email Stephanie Casey Pierce.
Ohio Submits HHF Plan to Treasury
Plan Includes Assistance for Unemployed HomeownersOhio HHF Logo
On June 1, the Ohio Housing Finance Agency (OHFA) submitted a plan to the U.S. Treasury for using $172 million of Housing Finance Agency Hardest-Hit Fund (HFA HHF) dollars to develop innovative programs to help homeowners avoid preventable foreclosure. Ohio was one of 10 states to receive a portion of $2.1 billion in Targeted Asset Relief Program (TARP) funds under the HFA HHF program.
 
The proposed program would create a network of HUD-approved housing counselors to connect homeowners to a menu of program options that include:
  • Partial Mortgage Payment Assistance (~$69.5 million), which would provide partial mortgage payments for unemployed homeowners for up to one year while they seek reemployment;
  • Rescue Payment Assistance (~$18.8 million), which would bring current delinquent homeowners who suffered a temporary financial hardship but have regained their ability to make their mortgage payments;
  • Modification with Possible Principal Reduction (~$51.8 million), which would provide a payment, matched by servicer principal reduction or forbearance, for underwater homeowners to help them qualify for a mortgage modification; and
  • Transitional Assistance (~$9.3 million), which would help homeowners transition out of their homes through short sale or deed-in-lieu agreements with their mortgage servicers.
To qualify for Ohio HHF, homeowners must have a verifiable hardship, earn 115 percent or less of the area median income, have mortgage debt equal to or less than FHA loan limits, have less than three months of mortgage payments in liquid assets, be willing to work with a housing counselor and be willing to repay assistance provided to them. Assistance provided to homeowners, with the exception of transitional assistance, is repayable in the form of a 10-year, low-interest loan with 18 months of deferred payments. Ohio HHF will use homeowners' repayments to provide assistance to additional homeowners.
 
To learn more about the Ohio HHF plan, visit the Ohio Housing Finance Agency's Ohio HHF webpage.
NeighborWorks Organizations Fight Loan Modification Scams
Local Agencies Hold Anti-Scam Events During NeighborWorks Week Scam Alert LOGO
During the week of June 7-11, NeighborWorks organizations throughout the state of Ohio held events and press conferences to get the word out about loan modification scams.
 
In Akron, Cincinnati, Cleveland, Columbus, Dayton, Ravenna, Springfield and Toledo, volunteers with nonprofit NeighborWorks affiliates went door-to-door in local neighborhoods to warn residents about modification scams. Volunteers urged homeowners to be wary of any company that:
  • Asks for a fee in advance to work with a mortgage lender to modify, refinance or reinstate a loan;
  • Guarantees that foreclosure can be stopped;
  • Tells homeowners to stop paying their mortgage lender and pay the loan modification company instead;
  • Pressures homeowners to sign a confusing document or one they haven't had a chance to read; or
  • Asks for personal information online or over the phone.
The best way to avoid a loan modification scam is to turn to a trusted source for foreclosure assistance. Ohio's NeighborWorks organizations are among 37 HUD-approved housing counseling agencies that are part of the Save the Dream Ohio network. These nonprofit agencies offer foreclosure prevention assistance free of charge.
 
Homeowners can connect with a housing counselor, legal aid or a pro bono attorney by calling the Save the Dream Ohio hotline at 888-404-4674.
New NFMC Report Includes Statistics, Best Practices
Ohio Counselors Provided 64,444 Units of Counseling Through End of 2009Yellow window green shutters 
NeighborWorks America has published its latest congressional report, which details findings from the National Foreclosure Mitigation Counseling (NFMC) program. NFMC funds nearly all foreclosure counseling activity in the country. As of January 31, 2010, a total of $440.7 million has been awarded to housing counseling organizations nationwide. Those counseling organizations have used NFMC funds to deliver 1,005,206 units of counseling to 871,333 homeowners.
 
In its report to Congress, NeighborWorks includes state by state data on counseling performance and homeowner demographics. Key findings include:
  • Ohio ranks third among states for NFMC counseling units delivered, with 64,444;
  • Ohio also ranks third among states for total units of counseling delivered in rural areas, with 5,937;
  • 56 percent of Ohio clients listed loss of or reduction in income as the primary reason for default;
  • 31 percent of NFMC clients had loans with interest rates at or above 8 percent;
  • Among NFMC clients, 29 percent were current and 26 percent were more than 120 days delinquent when they first sought help;
  • 11 percent of NFMC clients were paying more than 75 percent and 47 percent of clients were paying less than 30 percent of their income toward their mortgage payment, taxes and insurance; and
  • 73 percent of Ohio's NFMC clients had income less than 80 percent of the area median income (AMI), and 48 percent of clients earned less than 50 percent AMI. 
 
The report also details successful strategies housing counseling agencies used to create a more efficient counseling process. The most commonly cited strategies include:
  • Holding foreclosure prevention workshops or group orientation sessions;
  • Increasing capacity by hiring additional staff and providing staff training;
  • Using efficient organizational methods to increase production and quality of counseling; and
  • Increasing intake efficiency by requiring clients to have documentation at first meeting or putting intake information and documentation online. 

Spotlight on Success

Kathy Sandella Catholic Charities of Ashtabula County (CCAC)
Kathy Sandella

Kathy Sandella has been providing housing counseling services in Ashtabula County for almost twelve years, and locally, her name is often synonymous with housing.When interested parties began having conversations about establishing a local Save Our Homes taskforce, Kathy was instrumental in the developmental stages and continues to represent CCAC as a key component to the group. She also works closely with the county's Legal Aid and mediation staffs. Kathy takes great pride in being a client advocate and goes out of her way to help ensure the best possible outcomes. A recent client whose loan was modified wrote, "Thank you! We cannot thank you enough for all of your help and hard work. You are a very kind person."

Kathy is an Ohio Benefit Bank counselor and has previously been certified through the National Foundation for Credit Counseling as both a Certified Consumer Credit Counselor and Housing Counselor. She has completed NeighborWorks� training in housing counseling, foreclosure counseling and credit counseling. In order to keep abreast of the many federal and state housing programs for those in jeopardy of foreclosure, Kathy is a regular participant in the Save the Dream Ohio webinars.

A married couple came to CCAC for housing counseling after receiving a referral from Save the Dream Ohio. The couple was struggling to keep up with bills and wanted to get their finances under control.They purchased their home over 39 years ago, but owed over $57,000 due to repeatedly borrowing against the equity. Their loan was divided into two parts--a fixed rate mortgage loan at 8.25 percent and a variable-rate line of credit, currently at 6.25 percent--from which the couple drew on a monthly basis to make ends meet.

Over the years, the couple put most of their expenses on credit cards and finally enrolled in a debt consolidation program through a telephone solicitation. There was a large enrollment fee as well as a large monthly fee, but since they were so close to paying this debt off, they chose to remain in the program. This was an opportunity, however, to educate the couple about scams, telephone solicitations and the need to research programs before committing.

The husband had been laid off and was receiving unemployment benefits. A detailed budget review showed that they were over $300 short of meeting their monthly obligations. They then sold some items, reduced eating out and shopping trips, canceled internet service and reduced their cable bill to help balance their budget.

For a more permanent solution, Kathy contacted the lender, who agreed to combine the two loans and reduce the interest rate to 4 percent for two years, lowering their payment from $514 to $272. After the first two years, the interest rate would increase and remain at 5 percent for the balance of the 30-year mortgage, with a payment of $306. The decreased interest rate on the loans will not only make this couple's monthly budget more manageable, but it will save them over $51,000 during the term of the loan.

Catholic Charities of Ashtabula County has been providing services in Ohio's largest geographic county for 65 years. Although services have changed to meet the needs of the communities, its commitment to proclaiming life, strengthening families, building community, fighting poverty and providing advocacy, especially for those with little or no voice, has never changed. In short, CCAC is about Providing Help and Creating Hope.It is understood by every person at CCAC that no matter which door a client walks in, all appropriate services within the agency will be accessed on behalf of the client.

In addition to being a HUD-certified housing counseling agency, CCAC provides assistance for basic needs such as shelter, utilities, food, prescriptions and clothing. Other programming includes financial literacy education, guardianship, representative payeeship and school-based abstinence education. Since 1996, CCAC has been accredited by the Council on Accreditation.

The mission of CCAC is to provide service to people in need, to advocate for justice in social structures and to call the entire church and other people of good will to do the same.

Catholic Charities of Ashtabula County

About Save the Dream Ohio
Save the Dream Ohio is a multi-agency foreclosure prevention effort launched by Ohio Governor Ted Strickland in March 2008. Save the Dream Ohio connects Ohio homeowners with HUD-approved housing counselors and legal assistance through a free hotline, 888-404-4674, and an information-rich website, www.savethedream.ohio.gov.  
 
Partners include:
Ohio Governor's Office; Ohio Attorney General's Office; Ohio Treasurer of State; Supreme Court of Ohio; Ohio Department of Commerce; Ohio Department of Development; Ohio Department of Job and Family Services; Ohio Housing Finance Agency; Ohio State Bar Association; Ohio Legal Assistance Foundation; Ohio Poverty Law Center; Housing Counseling Agencies; and Legal Aid Organizations.
 
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