Home Ownership Preservation Initiative of NHS of Chicago
Category: Best Postpurchase Strategy
Information About Innovation:
Title:
Home Ownership Preservation Initiative of NHS of Chicago
Summary:
Neighborhood Housing Services of Chicago created a post-purchase education seminar for current/delinquent homeowners in NHS targeted neighborhoods with mortgages serviced by Homecomings Financial. The seminars provide basic mortgage education, credit and budget counseling, and an overview of options when financial difficulties arise. Each attendee receives a financial incentive (a $25 gift card to a local food store) from Homecomings Financial which results in high attendance.
Detailed Description:
To stem the large number of foreclosures in NHS of Chicago’s neighborhoods, NHS of Chicago partnered with Homecomings Financial, a mortgage servicer, to create a post-purchase seminar that reaches out to homeowners with Homecomings loans that also live in NHS neighborhoods. NHS sent out invitations to attend a post-purchase education seminar to all Homecomings customers in NHS zip codes, regardless of their loan status (current and/or in foreclosure). Most of the customers receiving invitations are “high risk.” NHS designed a seminar that would appeal to homeowners who are struggling financially to stay current with their mortgage payments. Topics included: refinancing responsibly, borrowing for home improvement, overlooking real estate tax exemptions, options for foreclosure prevention, and protecting yourself from predatory lenders. NHS of Chicago presented a series of three workshops. In total, over 120 homeowners attended between the three workshops (a response rate of six to eight percent). At the end of each seminar, homeowners could choose to make appointments with NHS homeownership consultants or directly with the loan servicer.
This series of seminars were innovative for two reasons: (1) servicers reported that they are unable to make contact with a high percentage of delinquent borrowers (over 50% of delinquent borrowers go to foreclosure sale without once making contact with the lender for loss mitigation), and (2) NHS on its own cannot provide the incentives for homeowners to attend post-purchase education and NHS on its own cannot identify the homeowners that are in the most need of post-purchase education. This partnership solved both problems.
Projected Cost:
The primary cost for these seminars is staffing costs. In addition, there were costs of approximately $1,500 associated with printing and mailing out invitations to the targeted audience. All of these costs are included in NHS’s overall annual HOPI budget.
2003 Outcomes:
In November 2003, 43 homeowners attended the seminar for the combined Chicago Lawn/Gage Park, West Englewood and Back of the Yards/Garfield Boulevard NHS neighborhoods. (The next two seminars took place in January 2004 and February 2004.) Homecomings Financial reported a significant number of borrowers that made follow up appointments directly with them. NHS counselors initiated work with several homeowners as well
Website:
http://www.nhschicago.org
Keywords:
Foreclosures, Homecomings, HOPI, Post-Purchase
Information About Organization:
Name:
Neighborhood Housing Services of Chicago, Inc.
Address 1:
1279 N. Milwaukee Ave., 5th Floor
City, State, Zip:
Chicago, Illinois 60622
Org. Status:
501c3 Non-Profit
Contact Name:
Ave Costa
Contact E-mail:
acosta@nhschicago.org
Contact Phone:
773/329-4130
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