QC DollarWise is working with many agencies including homebuyer counseling organizations to help homeowners better understand the foreclosure crisis and to guide homebuyers with troubled mortgages to find assistance.
What is the Foreclosure Crisis?
The Center for Responsible Lending estimates that nearly one in five subprime loans originated in 2006 will end in foreclosure for Illinois homeowners. Mortgages originating in the subprime market are often provided to people with below-average credit, and carry undesirable features such as higher interest rates, introductory interest rates, balloon payments, adjustable rates, and prepayment penalties. This puts many homeowners at risk for losing their homes when their interest rates reset or their introductory rate period ends.
In March of 2007, the Illinois Attorney General Office (the Office) reported that more than a trillion dollars’ in mortgages with adjustable interest rates will be reset. This means that hundreds of thousands of families will experience a substantially higher monthly payment when their introductory teaser period comes to a close.
Minority homeowners will be adversely impacted – with estimates of foreclosures affecting 8 percent of Latino families and 10 percent of African American borrowers – compared to 4% of white borrowers (Losing Ground: Foreclosures in the Subprime Market and their Cost to Homeowners).
What should I do if I am having difficulty paying my Mortgage?
The earlier you act the better off you will be. Locally, there are several homebuyer counseling agnencies that might be able to assist you in reviewing your current situation and working with a Lender to create a workout plan.
You may receive mail and other correspondance from groups or companies that claim they can help to "rescue" you from your mortgage crisis or help you develop a workout plan. Some of these companies are legitimate, others are scams or fail to deliver what they promise. Here are some links to help you better understand what to do if you are in a foreclosure situation.
Who can help me Locally?
There are some nonprofit organizations in the Quad Cities who can assist you. It is important to recognize that sometimes that staffing and financial resources may limit the ability of organizaitons to take on new clients. However, it is always worth calling to see if you can be assisted. Regardless of another organization's ability to help you - YOU can be your best advocate as long as you can arm yourself with the right information!
- Project NOW. Offers homebuyer programs and homebuyer counseling serving Rock Island, Henry, and Mercer counties in Illinois. Call 309-793-6391 ext. 131 or e-mail pchase@projectnow.org.
- Rock Island Economic Growth Corporation: Rock Island Economic Growth Corporation is a Freddie Mac and HUD approved Housing Counseling Organization. Participants receive one-on-one counseling with a housing counselor who will look at your individual financial picture. Program is offered to city of Rock Island residents. 309-788-6311.
- United Neighbors: United Neighbors serves Davenport residents and offers a variety of housing and hombuyer education opportunities. For more information call 563-322-7363.
- Neighborhood Housing Services: NHS provides a variety of resources on housing and foreclosure prevention. Call 1-563-324-1556 for more information.
SPONSORED BY:
Illinois State Treasurer's Office
Project NOW
GROWTH
QC DollarWise
Greenpath Debt Solutions
City of Moline
Hope for Homeowners Foreclosure Avoidance Class
If you are struggling with your mortgage payment or just want to learn more about your options as a homeowner, join us any of these free classes to learn about tools to help you stay in your home.
Classes offered:
Feb. 9, 6 p.m., Broadway Presbyterian Church, Rock Island
Feb. 25, 4 p.m., Moline Library
Feb. 17, 4 p.m., Floreciente Ctr, Moline (Espanol)
March 9, 6 p.m., Moline LIbrary
March 25, 4 p.m., East Moline Library
March 17, 4 p.m., Floreciente Center (Espanol)
Call United Way 2-1-1 for more class dates by dialing 2-1-1 or 355-9900.
