We have been hearing so much lately about the devastating effects of foreclosures, and just last week Governor Pawlenty said that the state will increase foreclosure-prevention help. See the bottom of this article for resources if you are in danger of losing your home.
While there is no doubt that foreclosures have shattered many dreams, just as with everything in life there is also an opposite effect….as some dreams are shattered, other dreams are fulfilled.
I have clients who had a dream come true last week when their offer on a foreclosed property was the one accepted out of five submitted offers. This young family would not have been able to afford to buy a house were it not for the re-adjustment now taking place in our real estate market. Housing prices had been escalating so far ahead of income that many first-time homebuyers were being squeezed out of the market because of declining affordability.
Declining housing values enabled them to get a house at a price affordable for them, and the Nehemiah program, which offers down payment help to anyone who qualifies for an approved FHA loan, is enabling them to get an FHA mortgage with 100% financing. The U.S. Department of Housing and Urban Development (HUD) had attempted to stop this private downpayment assistance last October but the court ruled against the ban the beginning of March 2008. This means that even though 100% financing may no longer be available with a conventional mortgage, down payment assistance is still possible with an FHA mortgage.
My clients will have to do some work on the property, but they are thrilled to be able to buy a family home. They were busy taking measurements today, excited to start getting ready to make it their own!
If you are fearing you may face foreclosure and are having trouble making your mortgage payments contact a foreclosure-prevention counselor for help right away. Counselors are available at the Minnesota Home Ownership Center at 651-659-9336 or go to hocmnn.org. The state attorney general’s office also has foreclosure-prevention information.
Following are upcoming scheduled Foreclosure Prevention Workshops:
- April 22: 4:30-8:30 pm, Minneapolis Urban League, 2100 Plymouth Ave N, Minneapolis
- May 20: 4:30-8:30 pm, Discovery Elementary School, 301 Second Ave NE, Buffalo
- June 5: 4:30-8:30 pm, Eagan Community Center, 1501 Central Parkway, Eagan
