NFMC Report: More than Half of Families Facing Foreclosure Affected by Job Loss

Today NeighborWorks America, the administrator of the National Foreclosure Mitigation Counseling (NFMC) Program, announced that 58 percent of homeowners who received foreclosure counseling through the NFMC Program reported the primary reason they were facing foreclosure was reduced or lost income. The news is found in NeighborWorks’ fifth Congressional report, which outlines NFMC Program activity through January 31, 2010.

"With unemployment numbers not likely to dip below 9 percent in 2010, our report proves what many already believed to be true. Unemployment and reduced income are having a devastating effect on our nation’s homeowners,” said Ken Wade, CEO of NeighborWorks America. “While Congress and state governments have stepped up and extended unemployment benefits to help families survive this tough economic climate, it’s time for mortgage servicers and investors to make meaningful accommodations for homeowners facing foreclosure. If they don’t, we’ll see even more empty houses and devastated neighborhoods in our communities.”

Greater detail on the findings of this report can be found in the NeighborWorks newsroom.

NeighborWorks Fights Mortgage Modification Scams with National Effort

NeighborWorks organizations around the U.S. are holding more than 150 events during national NeighborWorks Week (June 5-12, 2010) to inform tens of thousands of homeowners on how to avoid and report mortgage modification scams.

The events include hundreds of volunteers canvassing neighborhoods with tip-sheets and flyers, dozens of one-on-one and group workshops about reputable mortgage modification programs, and more.

“Many mortgage modification scams are sophisticated, slick and so well crafted that homeowners find it difficult to recognize them for the danger that they are,” said NeighborWorks America CEO Ken Wade. “More than 7,700 mortgage modification scams have been reported to the authorities since our campaign started in October, and we believe that the number of homeowners who have been victimized is significantly greater.”

In addition to mortgage modification scam prevention events nationwide, NeighborWorks organizations also are holding traditional community celebrations and hands-on community building activities, including home repair and painting events, landscaping projects, and mural painting. These efforts, and those of NeighborWorks Week events over the past 26 years, leave positive lasting legacies in participating communities all year round.

Find events on the National NeighborWorks Week website. More information is also in the NeighborWorks newsroom.

NeighborWorks America Receives $1 Million Grant from the Rockefeller Foundation for Nonprofit Housing Counseling and Foreclosure Prevention

NeighborWorks America today announced that it received $1 million from The Rockefeller Foundation in support of infrastructure development and upgraded technical support for nonprofit housing counseling organizations. The grant will help to strengthen and supplement nonprofit housing counseling capacity and increase their efficiency and ability to help homeowners avoid foreclosure.

Specifically, the grant will help NeighborWorks America provide data management and technical support to nonprofit organizations using CounselorMax™ to manage homeowner client data and to deliver and track that information to the servicers through the HOPE LoanPort, a web-based tool developed by the HOPE NOW Alliance that streamlines loan modification applications on behalf of borrowers at-risk of foreclosure, allowing housing counselors to efficiently transmit completed applications to mortgage servicers. In addition, the grant will also support community-based outreach events for homeowners at risk of foreclosure.

“Homeowners and housing counselors need better technology to work through the complicated details and document requirements for a long-term, successful mortgage modification,” said Ken Wade, CEO of NeighborWorks America. “The support from The Rockefeller Foundation will improve the work of nonprofit organizations that have been slowed by a paper-based system and inefficient mortgage modification delivery process. As a result of these investments, counselors will be able to serve homeowners at risk of foreclosure more efficiently and effectively.”

Congresswoman Maxine Waters, Actress Alfre Woodward and Actor Wendell Pierce Join NeighborWorks in Celebrating a Rebuilding Effort in New Orleans

The Pontchartrain Park area of New Orleans was completely destroyed by Hurricane Katrina and the pace of recovery had been extremely slow. But thanks in part to NeighborWorks’ Gulf Coast partner Pontchartrain Park Community Development Corporation (PPCDC), residents now have an opportunity to rebuild their community and return home.

On May 14, PPCDC celebrated completion of the first of 250 homes it plans to reconstruct in the area. The organization is headed by Wendell Pierce, the actor from HBO shows Treme and The Wire, who is from New Orleans and was raised in Pontchartrain Park. He took on the task of assembling the development team and partners to make his dream of redeveloping the housing in the area a reality. One of those partners is NeighborWorks America, who provided $200,000 in grants to PPCDC to fund the pre-development expenses associated with the project.

At the May 14 event, Pierce thanked NeighborWorks for stepping out and providing the initial pre-development funding. “When others said no, NeighborWorks said yes and we are sincerely thankful to them as a valued partner,” said Pierce.

Congresswoman Maxine Waters and actress Alfre Woodward also attended the celebration. Congresswoman Waters has visited New Orleans several times post Katrina to make sure resources promised by the government are delivered to the area. She thanked NeighborWorks America for the work it is doing in creating and preserving homeownership, not only in New Orleans, but across the nation.

NeighborWorks America Named a Top Builder by Builder Magazine

NeighborWorks America was named one of the nation’s largest residential home builders, according to Builder Magazine’s 2009 Builder 100 list. NeighborWorks America debuted on the 2009 Builder 100 list at No. 82, with 302 units of for-sale housing completed by its network of local NeighborWorks organizations.

“We are excited to be recognized for the work of our homebuilding network organizations. Even in the worst housing market since the Great Depression, local nonprofits are revitalizing their communities with new affordable and green for-sale housing, and preparing homebuyers for long-term homeownership,” said Thomas P. Deyo, deputy director of National Initiatives and Applied Research at NeighborWorks America. “NeighborWorks organizations not only build homes, we build communities.”

Learn more in the NeighborWorks Newsroom.