For central Ohio Families Grants to help forestall foreclosure

[tiffany]

Grants to help forestall foreclosure

Grants to help forestall foreclosure
Franklin County has $300,000 to aid middle-class folks
Wednesday, March 19, 2008 2:59 AM
By Barbara Carmen

THE COLUMBUS DISPATCH
Franklin County is laying money on the table to bail out those facing foreclosure.

A new grant program approved yesterday is aimed at middle-class homeowners and will provide up to $3,000 apiece to help them catch up on payments and settle late fees.

"This is a program that will help people get their financial life in order so this is not a repeat thing," Commissioner Mary Jo Kilroy said before voting in favor.

"The foreclosure crisis has hurt this community. … It hurts neighborhoods. It hurts property values. More importantly, it hurts people."

Foreclosure filings in Franklin County increased nearly 75 percent from 2001 to 2006 and are continuing to skyrocket, a briefing packet for commissioners says. In 2006, lenders filed to foreclose on one out of every 124 homeowners. Many of those facing foreclosure said they had lost their jobs; others cited medical bills, divorce and unexpected home repairs.

Douglas E. Lumpkin, director of the Franklin County Department of Job and Family Services, pieced together $300,000 in federal funds he usually saves for emergency services.

The money will go to the Mid-Ohio Regional Planning Commission, which serves about 350 clients a year in homebuyer-education, foreclosure-prevention and default-services programs.

"The idea is to stabilize them so they can remain in their homes and not end up on our (welfare) rolls as a result of foreclosure," Lumpkin said.

The county plans to advertise the grants at its opportunity service centers and through MORPC. Under the grant's eligibility guidelines, a family of four could earn up to $63,600 a year.

"Some people need as little as $500," said Kathy Werkmeister, the planning commission's director of housing and community services.

The help, however, comes with strings that commissioners view as lifelines: Homeowners get counseling to devise a realistic family budget that sets aside money for repairs and other emergencies.

"But we can work with a lender," Werkmeister said. "One advantage of using a counselor is that banks right now are listening. They realize they don't want to buy these houses back. They want to help people stay in their homes."

The grants are meant for those who "have gotten off track temporarily," Werkmeister said. Those unable to afford a home should consider selling, she said.

The planning commission also has state foreclosure-prevention grants, which were approved in January. But those are aimed at the working poor; families of four can have an income of up to $32,200.

Commissioners toured county neighborhoods hardest hit by foreclosures last month and met with residents, who said the yellow-tagged vacant properties are sinking their home values and luring drug dealers and squatters.

Commissioner Marilyn Brown said she hopes the grants will encourage those facing foreclosure to quickly reach out for help. "There is a paralysis of fear when you keep getting bills and bills. It's scary.

"Make the call."

Those buying a home or facing foreclosure may phone 614-233-4177 for free help.

[tiffany]

Ok, so I am waiting on finalizing this for ourselves. We have met with the Mid Ohio Regional Planning Commision and they have every bit of paper work and we hope to have the grant money wired to Saxon next week. I thought that there might be other people in the Columbus area that might benefit from this. Typically my husbands income is too high for any type of asssitance but since we have a family of 5 we came in just under the wire (thank God!) I hope that somebody else may benefit from this.

Tiffany

[Moe]

Thats great Tiffany. I hear so many programs like this coming out but after they are announced, you do not hear anything anymore. You bet, there are people here that read the forum and will pick this information up.

Please update this with your results and comments.

Thanks for paying it forward

[tiffany]

Well our grant was approved and should be sent to Saxon this week, AND I just received a call from Saxon and they have agreed (after much bugging from me) to waive our late fees!!!!!!!!! This means our house will be officially out of foreclosure!!!!!!!!!!!!!!!!!!!! We are now working on a modification since our rate is due to adjust in June, but we are hoping to be able to work out a refinance with FHA Secure by the end of the year. Just thought I would share our amazing news and the fact that soon I will be able to grocery shop on any day of the week that I want

I am now waiting on a manager to call me back concerning the modification since the file was assigned on April 3rd and according to Saxons own rules I should have been contacted within 3-5 business days. Oh well one day at a time. Thanks again everyone for the positive vibes that resinate throughout this site!

Tiffany

[schwefls]

Kudos to you, great work