Education Programmes Linked To Decline In Foreclosures

May 19th, 2008

Pennsylvania County has shown a decline in foreclosure activity. Some opine that education programmes are linked to this decline in foreclosures. The number of foreclosure houses in February 2008 is less than that of 2007. Steve Chopek of Pennsylvania Housing Finance Agency however noted that in adjacent counties of western Pennsylvania the trend was reverse with more foreclosures in February 2008 than in February 2007.

The main speaker at Westmoreland County Coalition on Housing meeting was Chopek. Various county representatives were present – about 60 in number. The meeting was held at Greensburg Garden at the Civic Center. The talks included discussion on operations conducted by Homes Build Hope, Next Step Supportive Housing, Safe Harbor, Welcome Home Center and Union Mission.

Westmoreland recorded 79 foreclosures in February 2008 as compared to 87 in the previous year. This shows a 9.2% fall in numbers. The counties of Allegheny, Butler and Washington saw more foreclosures in the current year than in the previous one. Allegheny increase was by 33%, Butler by 200% and Washington by 63% during the current year’s months of January and February.

Analyzing the causes Chopek opined that this has a lot to do with educational programmes related to the taking of mortgages and knowing the ins and outs of it. People are being taught to budget their income and to know about priorities. However the impact of differences in economic conditions in various regions of the state have to be considered.

Chopek repeated that the various programmes available are for those in the foreclosure net. There is the option of refinancing to an affordable loan – REAL. The changeover will be to a 30 year fixed interest rate for those who cannot manage the sub-prime ARM’s. Another option is the Homeowner Equity Recovery Opportunity programme – HERO. It is for those who are not considered eligible for REAL. Another rescue programme is Homeowner’s Emergency Mortgage Assistance Program or HEMAP. The latter advances funds to help people out of foreclosures. All the programmes however have conditions attached to it and eligibility is a factor. More information will be available on the web.

In Pennsylvania foreclosures can be done only through court – this being a legal process. Before the process starts the borrower must be at least sixty days behind schedule. The lenders usually send two letters notifying future steps to be taken if payment is not made. The owner gets 2/3 months time.