Foreclosure Solutions: Group Help To Prevent Foreclosures

Foreclosures are reaching alarming proportions. Groups are clubbing together to face the crisis. A local agency is expanding its operations to bail out victims. Recently The Rock Island Economic Growth Corporation was sanctioned a grant from the Island’s community foundation to arrange for foreclosure counseling to those house owners who are earning less than 120% of the average income of the locality. More and more people are coming forward for help. The organization is a non-profit set up trying to act as an intermediary between lenders and borrowers to bring into force a viable foreclosure solution. Borrowers have been asked to knock on the doors of the agency as soon as 15 days has lapsed.

Strong financial advice is given to make them take the right decisions. This is vital for anyone who buys a unit through Growth. The hours of these education tours are being increased. The decision should not be taken lightly – it stretches on to long 30 years. All the pros and cons have to be weighed before taking the final step. A spokesperson of the Illinois Housing Development Authority feels that the general opinion is that at the root of the malaise is ignorance about the mortgage operations. The latter is very complicated for the layperson. But what can be done is to counsel the house owners on the basics – financial decisions, expectations and restrictions. This especially applies to the first time buyers. Because of the lack of awareness the initial reaction to the foreclosure notice is inertia – they neither know anything nor do anything!

Expert Ramirez opines that many get into ‘catch-2’. They default on payments and then try to refinance. But usually the lenders shy away from it because the borrowers are already in delinquency. So the catch is to catch them before borrowers fall into this net. Rock Island community is well known for being innovative. The line of approach includes financial management for lenders and workable budgets for borrowers so that conventional mortgage can be availed of.

Growth has helped 364 persons to buy houses since 1998. The group is committed to the cause of making ownership dreams real to the Rock Island community. So far there has been only one foreclosure in the group itself. But elsewhere in Illinois the problems is skyrocketing. It peaked across the country during the second quarter of this year.

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