10 Realtor States with Big Hearts for Distressed Homeowners

Posted under: Foreclosure | August 23, 2010 6:19 AM | 2,126 views | 6 comments

The housing crisis presents a host of challenges to homeowners, buyers, sellers, and real estate agents. Foreclosures are mounting in unprecedented numbers. Nevada, Arizona, and Florida posted top state foreclosure rates in July, according to RealtyTrac U.S. Foreclosure Market Report. Nevada and Florida Realtors respond to the crisis with a series of ambitious, consumer-facing outreach programs; Arizona’s Realtor community faces the crisis behind closed doors, with nary a HUD counselor or distressed homeowner in sight.

Last year the National Assn. of Realtors launched a massive Foreclosure and Response Grant Program, allotting more than $2.5 million to state associations, with amounts tied to membership total. Minimum grant allocation for small member states is $40,000.

Realtor associations planned and executed extensive training for their members relative to buyer care and sellers facing short sales, both commission generating consumer groups.

States reaching out to distressed homeowners in their outreach plans outnumber their we-just-want-to-focus-on-income-generating-consumers counterparts by a 3:1 margin. Most of these Realtor groups work in close partnership with nonprofits and government agencies.

(Foreclosure statistical data is taken from RealtyTrac. Realtor grant data is derived from information provided by the National Assn. of Realtors.)

Top 10 States with a Heart for Distressed Homeowners

California is rocked with unprecedented foreclosures. This state alone accounted for 21 percent of the national total in July, with 66,910 properties receiving a foreclosure filing during the month, according to RealtyTrac. The 169,945-member California Assn. of Realtors leadership stands firm, issuing an uncompromising commitment to helping distressed homeowners. The state spent all its $150,000-plus NAR foreclosure grant resources in a multi-faceted program including regional foreclosure prevention seminar, zip form resource library, media campaign promoting California mortgage protection program, media kit for local associations, and funding of continuing education courses for foreclosure prevention. Orange County Assn. of Realtors is an active member of the Orange County Homeownership Preservation Collaborative, consisting of numerous civic, government, advocacy and industry organizations. OCAR scheduled a foreclosure prevention workshop in cooperation with the Collaborative. Pacific SW Assn. of Realtors put its money to a partnership program with the San Diego Housing Opportunity Collaborative, “Sustaining Homeownership – Loss Mitigation and Making Home Affordable Workshop.”
Florida saw 51,557 properties receive a foreclosure filing during July. The Sunshine State is fighting for its life. Its Realtors and homeowners are gasping for air and they face mounting foreclosures as RealtyTrac’s number 3 troubled state. The Florida Assn. of Realtors and local Realtor groups are sending a message loud and clear to 119,721 Realtors and residents in the state: “We are going to do everything in our power to help you!” And they are putting their money where their mouth is - $97,000 is dedicated to a massive outreach program including a statewide “Making Homes Affordable Week” in every district in the state to education Floridians on federal, state, and local foreclosure, loan modification, and refinance assistance. State leaders developed a tool kit to serve as a template for local associations to help host local education events. Local associations commit financial support and energy aligned with state Realtor leadership initiatives.
Nevada. The state leading the country in foreclosures saw one in every 82 housing units receive a foreclosure filing in July. The Nevada Assn. of Realtors devotes its entire grant proceeds to a comprehensive program “designed to educate Realtors, work with homeowners to avoid foreclosure, and partner with communities to minimize the impact of foreclosures.” Community outreach efforts include PSAs on radio and television, and new media (i.e. YouTube, Facebook, and Twitter.) NVAR is reaching out to faith based organizations and civic clubs to education the general public and locate distressed homeowners. The association announced plans to work with a small number of foreclosure prevention counselors to develop a pilot program to help expand their outreach, share best practices learned from other agencies, and perform more efficient assistance through mediation workshops and counseling. NVAR and local associations pledged to contribute financial resources to this project in addition to the $48,579 grant from the National Assn. of Realtors.
Connecticut. This New England state is number 20 on the RealtyTrac list, but Realtor associations at the state and local levels and their 12,780 members have embraced distressed homeowners with the vigor of a community fighting for life. Connecticut Assn. of Realtors announced a $30,000 investment in a comprehensive, stand-alone consumer website, Own It, with a focus on homeownership and how to avoid foreclosure. The association’s grant application listed 17,000 as the number of Realtors assisted with this project. CAR obviously believes its members have an interest in a healthy economy and financially stable and secure homeowners. Great Hartford Realtors affiliated with The Partnership for Strong Communities to host three “”Housing Help” public awareness forums in 2010. Greater Waterbury Realtors and Neighborhood Housing Services of Waterbury coordinated an outreach program to help homeowners avoid foreclosure, and NHS provides face-to-face counseling for distressed homeowners.
Maryland. A quick look at the Realtor landscape in RealtyTrac’s number 10 most distressed state finds local associations competing for creative, industrious, and magnanimous consumer outreach. The Coastal Assn. of Realtors helped fund a program administered by the Salisbury Neighborhood Housing Program and a HUD-certified counseling agency. A revolving loan fund assists qualified homeowners with household expenses so they do not fall behind or default on their mortgages. Foreclosure prevention, consumer counseling (private and group workshops), and Realtor education are weaved into a holistic financial program statewide.
Colorado. The Rocky Mountain State is number 13 on the RealtyTrac list and Realtors associations are doing their best to provide balanced training to some 21,000 members. The state association applied a lion’s share of its NAR grant monies to an education program developed in partnership with local governments, mortgage brokers, bankers, and title companies, “Helping People Stay in Their Homes Today and in the Future.” Colorado Assn. of Realtors is working with counselors from the Colorado Foreclosure Hotline and launched a statewide media campaign encouraging homeowners to examine their options. Grand Junction Area Realtor Assn. planned large scale borrower outreach events as co-sponsors with the Grand Junction Housing Authority and other partners. Additional grant monies were applied to Realtor education relative to buyer education and short sales, understanding debt, loan modification/principal reduction, and tax credits.
Ohio has a number 11 RealtyTrac rating for distressed states and state with 13,511 foreclosure filings in July. State and local Realtor leadership rise to the occasion in grand style. Columbus Realtors planned two workshops at a venue seating 400 - 500 attendees, working in concert with Columbus Housing Partnership and Huntington National Bank. Other Realtor groups in the state craft their approach similarly, with strong consumer facing initiatives.
Indiana, number 17 on RealtyTrac’s list, sees a partnership between the Indiana Assn. of Realtors and the Indiana Foreclosure Prevention network to do public service announcements throughout the state. “We want to reach out to Hoosiers with questions on options for avoiding foreclosure,” said Sherry Tilley, senior vice president, IAR. Certified foreclosure prevention counselors will be available at each location.
Illinois foreclosure activity increased 33 percent from the previous month — the biggest monthly increase among states with top 10 foreclosure rates (Illinois ranks 8th). A total of 19,602 Illinois properties received a foreclosure filing in July, the third highest state total and accounting for 6 percent of the national total. Illinois Assn. of Realtors is producing a multi-faced program including courses on short sales and financial programming; they are developing public services announcements and podcasts. Website enhancements include a foreclosure content page.
Virginia ranks 22 on the RealtyTrac list and Realtors there seem inclined to keep the foreclosure numbers down. The Virginia Assn. of Realtors and local associations designed four distinct programs for delivery throughout the Commonwealth. The “Buying TIME” program provides information to the general public, and options available to homeowners who fall behind on mortgages. Richmond Realtors announced a partnership with the City of Richmond, Housing Opportunities Made Equal and the Partnership for Housing Affordability.

Realtor Associations Looking for a Heart

Thirteen states restricted their NAR grant monies to Realtor buyer education and short sales certifications. They report no affiliations or partnerships with consumer housing counselors, nonprofits, or government agencies. NAR reports three states – Arkansas, Maine, and Wyoming, and the District of Columbia, show no grant approvals, even though each of those jurisdictions has a minimum $40,000 allotted by the trade group to its foreclosure and response program.

Arizona foreclosure activity decreased on a year-over-year basis for the sixth straight month, but the state still posted the nation’s second highest state foreclosure rate. One in every 167 Arizona housing units received a foreclosure filing during the month — more than twice the national average. This state is devastated by the housing crisis and rates second on the RealtyTrac list of most severely affected states. There is a huge chasm between sales-centric Realtor outreach and the home retention efforts of nonprofits and government agencies. There is no Realtor presence on the Arizona Foreclosure Prevention Task Force, Don't Borrow Trouble Coalition, or consumer friendly resource lists. Realtor associations in the northern part of the state spent more than $50,000 in NAR grant monies to educate 12,660 buyer agents and short sale agents. NAR grant proceeds did not reach the southern area of the state, including Tucson and Yuma.

Foreclosures are no small potatoes in Idaho, RealtyTrac’s number 5 state for distressed homeowners. Idaho Realtors respond to the housing crisis with a series of continuing education classes for 668 of its 2,891 members. Focus of the education is what buyers’ representatives need to know about short sales and foreclosures. There is no mention of distressed homeowners in their outreach plan.

Overall, 13 states restricted their foreclosure outreach to education courses, primarily “What Buyers’ Representatives Need to Know,” “Foreclosure: Prevention and Opportunities for Buyer-Clients,” and the NAR “Short Sales and Foreclosure Certification” program.

Email Alerts Send to a Friend Post to Facebook Post to Twitter

RSS

Report

Comments

By Robin Willis Siddle, Mon Aug 23 2010, 10:07

Regardless of whether or not our associations focus on truly helping the public as opposed to just making sales, many individual agents are in the trenches truly working for the best interest of the homeowners. However, as a Realtor in Tucson, Arizona, I have watched people's home values drop and their mortgages become more and more underwater. I have to ask myself at what point is my push to help them stay in their homes going from being in their best interest to being something that damages them financially? If someone is $100K underwater on a home that is only worth $120K and I push options to get them to stay, I am encouraging them to make a choice that is going to haunt them financially for the next 15-20 years. A short sale or foreclosure would affect them for 7 years tops. So in these situations, I am not in good conscience able to say that they should do everything in their power to keep their homes. I always provide options and resources if that is what they would like to do, but people are more and more frequently coming back to me with the sentiment that they would like the least damage to their finances as possible and they are deciding that short selling or foreclosing is the way to achieve that. Since a short sale provides the lesser damage in this case, that is often the route that they choose. I am also concerned that if I push keeping their home instead of giving them options and letting them choose, I am putting myself in a position of giving them financial advice that could easily be construed as BAD financial advice.

report

By Frances Flynn Thorsen, Mon Aug 23 2010, 10:11

Robin, I don't think a Realtor should push one option versus another. There is a problem when Realtors say short sales are the answer. There is a great deal of discussion among attorneys in Pima County that leads many legal eagles to think foreclosure may be a better financial and credit solution to some people than short sales.

Do not assume short sales are a better solution ...

report

By Robin Willis Siddle, Mon Aug 23 2010, 10:31

Frances, I completely agree with your statement, "There is a problem when Realtors say short sales are the answer." One of the frustrations of working in the trenches in this market is that there are so many Realtors acting as if a short sale is a one size fits all solution. It isn't and agents that push that solution will likely be facing litigation in the years ahead as all of this shakes out.

The best way to handle the situation is to present all options and recommend that the distressed homeowner speak to a Real Estate Attorney. There are also non-profit or very low cost options for homeowners who don't have their own attorney already.

I am not one of those that assumes that short sales are always the best solution. In fact, I have had to inform more than one potential client that a short sale may not be their best bet and advise them to seek legal counsel before proceeding.

By the way, it is grueling work doing short sales and the reason that I and many other agents do them is not to line our pockets, but to help people for whom this is their last resort to make the best out of a bad situation. Seriously, we have to sell a home 3 times to get one paycheck (often docked by the banks). I would prefer not to do them, but can't stand the thought of leaving homeowners out in the cold. So I do them and do them well to do my part to stave off the massive amounts of foreclosures in Tucson.

report

By J. Mario Preza, CRB, CDPE, Thu Aug 26 2010, 14:36

Great insights on the kind of help everyone can use and the big hearted folks that rally behind such noble ideals. If everyone would selflessly and willingly put themselves in such a frame of reference, perhaps some ready solutions if not options might develop. However, I find that even though people could be witness to atrocities or abuses, they often times fail to act until they feel it for themselves or it hits close to home. I have seen this be the case here in the San Francisco Bay Area where hundreds of unwitting homeowners, particularly those with limited English speaking skills were victimized by people who sought their dollar first, and cared little about the eventual consequences. Kudos to you for writing this informative article. Let's see if a consortium of capable people like you might be able to rally the efforts to help all under the land -- I'll lend my help with the Spanish translation, if called.

report

By Doris Barnett, Sun Aug 29 2010, 10:02

Rockin it Frances-Glad you are out there for us! Doris

report

By Figuring, Mon Aug 30 2010, 12:56

we should all be very worried right now that a bill aimed to ease foreclosure is dying. Please see Mercury News editorial: Failure of foreclosure bill shows lobbyists rule Sacramento
http://www.mercurynews.com/opinion/ci_15905720

Please do your part. Call a congressman to show your support for this bill. http://totalcapitol.com/?bill_id=200920100SB1275