New Website Provides Trusted Source for Avoiding Foreclosure in SE Michigan

Guest Column
by Dona Ponepinto

March 16, 2010

The foreclosure crisis in Southeast Michigan is far from over. In fact, it’s still growing. But research tells us that one-third of home foreclosures are preventable with the right support.

In 2009 foreclosures increased 40 percent in Southeast Michigan, with more than 65,000 foreclosure filings in Wayne, Oakland, Macomb and Washtenaw counties. Perhaps the most sobering statistic is that nearly half of all homeowners facing foreclosure either don’t ask for help or turn to a source that is not qualified to help. Unfortunately, we haven’t had an efficient process in place to assist homeowners in need.

Foreclosures not only hurt the family losing its home but also cause neighbors to watch their property values drop, local businesses to lose customers and whole communities to grapple with decreased tax collections and service cuts. We must reverse this damaging trend.

Fortunately, a new online tool is designed to do just that. As the result of a regional effort, homeowners in Wayne, Oakland, Macomb and Washtenaw counties can now call 2-1-1 or go to a new website, www.fightmortgageforeclosurefinsc.org, to get connected with critical foreclosure prevention services.

This new web portal, launched at the end of February, is a fully automated site delivering to-the-minute data and referrals. It will dramatically improve efficiency for service agencies and policymakers while ensuring that people who need help are connected with the right resources.

The combination of United Way’s 2-1-1 phone resource and website will allow us to:

• Increase efficiency and effectiveness as a result of the ability to quickly connect homeowners with the right resources and services
• Help more people stay in their homes through improved efficiencies that enable counselors to serve more people
• Connect homeowners who are unable to avoid foreclosure with resources and support to help ensure they have a safe place to land
• Track outcomes for each homeowner automatically through the system so that we can continuously improve the process.

This new tool is a great example of regional collaboration and cooperation. Wayne County pioneered this project and shared its award-winning technology, which is the web portal’s foundation. The United Way brought more than 60 public and private entities together to form the Southeast Michigan Regional Foreclosure Intervention and Neighborhood Stabilization Collaborative, which in turn developed this comprehensive, regional solution to stem the tide of mortgage foreclosures and assist homeowners at every stage of the foreclosure cycle.

This new tool will enable us to increase the number of people we can help and reduce the number of foreclosures in our region. Homeowners who are unable to avoid foreclosure will have access to services and support to ensure a safe landing.

Now that we have this resource in place, it is critical that we spread the word about 2-1-1 and www.fightmortgageforeclosurefinsc.org. We’re all in this together. And it will take all of us working together to keep people in their homes and stabilize our communities.

Here’s what you can do to help:

• Let people know that 2-1-1 and www.fightmortgageforeclosurefinsc.org are secure, trusted sources to obtain assistance
• Encourage people to seek help as soon as they have trouble paying their mortgage
• Spread the word that foreclosure can be prevented with the right support.

We must reverse the foreclosure trend that is ravaging our communities. Together, we can.

Dona Ponepinto is vice president of community investments, basic needs and financial stability impact areas at United Way for Southeastern Michigan. Additional information about the organization is available at its website.

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2009 Foreclosure Factsheet

Foreclosure across the nation

• There were more than 2.8 million foreclosure filings in the United States
• Foreclosure filings increased 21 percent over 2008 and 120 percent over 2007.

Foreclosure across Michigan

• Michigan’s 2009 foreclosure rate ranks 8th in the nation, with 118,302 foreclosure filings
• 1 in every 38 housing units received a foreclosure filing
• In 2009, foreclosure filings increased 12 percent over 2008 and 36 percent over 2007
• Michigan had the fifth highest foreclosure total.

Foreclosure in Southeast Michigan

• There were 65,000 foreclosure filings in 2009, an increase of 40 percent over 2008
• 1 in every 27 housing units in Southeast Michigan received a foreclosure filing
• Southeast Michigan accounted 55 percent of Michigan’s 118,302 foreclosure filings
• Homeowners saw their property value decline nearly 18 percent.

Foreclosure in Wayne County

• Wayne County had the highest foreclosure rate in the state
• 1 in every 26 housing units received a foreclosure filing
• Wayne County led the state in total foreclosures, reporting 32,366 properties with foreclosure filings.

Foreclosure in Oakland County

• Oakland County had the fifth highest foreclosure rate in the state
• 1 in every 30 housing units received a foreclosure filing
• Oakland County had the second highest number of foreclosure filings in the state, reporting 17,475 foreclosure filings.

Foreclosure in Macomb County

• Macomb County had the second highest foreclosure rate in the state
• 1 in every 26 housing units received a foreclosure filing
• Macomb County had the third highest number of foreclosure filings in the state, reporting 13,339 foreclosure filings.

Foreclosure in Washtenaw County

• There were 2,661 foreclosure filings in Washtenaw County in 2009
• There were 589 foreclosure filings in 2006
• The percentage change for foreclosure filings from 2006 to 2009 is nearly 352 percent (although 2009 numbers are down slightly from 2008).

Source: Realtytrac.com