Anoka County Press Release
For Immediate
Release
Jerry Soma, Anoka County Human Services Division Manager,
763-422-7008 |
June 20, 2008 |
ACCAP’S MORTGAGE FORCLOSURE PREVENTION HOTLINE SERVES COMMUNITY NEED
“It’s common to freeze when something really
bad is on the horizon,” said Dale Cesafsky, mortgage foreclosure
counselor with the Anoka County Community Action Program (ACCAP).
“When people facing closure call ACCAP and learn about the process
and the various steps they can take, it’s a tremendous relief,”
Cesafsky told members of the Anoka County Children and Family
Council at their June meeting.
The Council invited ACCAP to do a
presentation to increase awareness of community resources among
members of the Council, which represent Anoka County, seven school
districts and several community agencies.
ACCAP first noticed a spike in the number of
requests for help in December, 2007. In January, they had one staff
person taking calls. In February, a hotline was established. By
April, five people were fielding calls, at a rate of about 30 calls
per day. They expect to log 3,500 calls this year, according to
Patrick McFarland, ACCAP executive director.
“We chose to be proactive in responding and
we’re in a position to react quickly,” McFarland said. He noted that
Anoka County ranks third highest in the state for the number of
foreclosures in 2007 (1,680). The outlook for 2008 is 2,268
foreclosures, based on sheriff’s sale data.
When people call ACCAP, they receive help in
identifying options and developing budgets. Occasionally, financial
aid is available. Lenders are getting more flexible about payment
plans, according to Cesafsky. ACCAP helps negotiate plans with
lenders.
“Usually, lenders want to see a budget and
they want to know you’ve got adequate, dependable income to make
payments,” Cesafsky said.
The most frequent reasons for mortgage
defaults and foreclosures, according to ACCAP, are, in order:
1.
loss of income
2.
mortgage product/refinance
3.
poor budget management skills
4.
increase in expenses
5.
divorce/separation
6.
unemployment
7.
medical issues
8.
death of a family member
Demographics of the people calling ACCAP for
assistance show:
·
most are married,
·
most are households with children,
·
most are white,
·
average monthly household income is $3,127, and
·
most households are in Coon Rapids, Blaine and Ramsey
So far in 2008, nearly 300 households have
saved their homes from foreclosure with ACCAP’s assistance. Many
more have received financial counseling for moving on after a
foreclosure.
Anoka County Commissioner Rhonda Sivarajah,
co-chair of the Anoka County Children and Family Council, credits
ACCAP for leading efforts to help people facing a housing crisis.
“Housing issues can be debilitating for
families,” Sivarajah said. “The ripple effect is felt in schools and
in community agencies supporting families. ACCAP is doing a great
service by educating people about their options and about the
foreclosure process so they know their rights.”
ACCAP’s mortgage foreclosure prevention
hotline number is 763-783-4880.
About the Anoka County Children and Family
Council: The Council is a family services collaborative.
Partners include Anoka County, the Anoka County Community Action
Program, parent representatives, community agency representatives,
and the school districts of Anoka-Hennepin, Centennial, Columbia
Heights, Fridley, St. Francis, Spring Lake Park, and Forest Lake.
download for print
Photo cutline: Anoka County Commissioner Rhonda Sivarajah and Heidi
Johnson, Anoka County Children and Family Council staff, learn about
foreclosure issues from Anoka County Community Action’s Dale
Cesafsky and Patrick McFarland. The key message? Homeowners facing
foreclosure have the most options and resources available if they
address the issues sooner rather than later.
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page last updated -
06/20/2008
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