1. PROPERTY RECORDS EDUCATION PARTNERS FEBRUARY 9, 2012 Foreclosure Mitigation

2. Foreclosure Sales Housing Link, 2011 data projections only

3. Foreclosure Trends During 2008, a large portion of the sales were related to inflated housing values, subprime lending, and exotic mortgages Circumstances in 2012 are related to long-term unemployment and underwater mortgages Washington County, percent involved in foreclosure:  In 2010, 1.55% of residential properties  In 2006, 0.5% of residential properties  In 2005, 0.33% of residential properties

4. Cities with Highest Gains Cities with Greatest Drops Moorhead$197,847+24.7% Excelsior$508,437+21.7% Princeton$159,826+11.4% Prior Lake$282,139+10.7% Cambridge$126,335+10.0% Virginia$68,033-25.4% Mound$300,091-22.3% Forest Lake$144,983-18.3% Wayzata$423,967-17.2% Becker$146,018-14.2% Homes Sales Prices RealtyTrac, December 2011 Average MN residential sale price = $200,181 Average MN residential foreclosure sale price = $144,265 Price reduction of 27.94%

5. Housing Counseling Services Regional Partnership Approach The objective of foreclosure prevention counseling is to work with households to reach long-term solutions that are stable and affordable. Outreach, Training and Education  Borrower workshops, door knocking, libraries, local media, utility bills, tax statements, direct mail & more.  Outreach to information & referral organizations.

6. Housing Counseling Services Information about the foreclosure process Customized plan to address household crisis Financial counseling Mortgage counseling Identify options for preventing foreclosure Avoiding predatory practices “Smooth Transition” counseling, as needed

7. Housing Counseling Services In 2010, Homeownership Advisors Network counseled 12,158 households 66% of counselees able to avoid foreclosure  89% stay in home  11% unable to stay in home Point when seeking counseling  12% are current on mortgage but anxious  38% are less than 90 days delinquent  41% are over 120 days delinquent

8. H.A.R.P. HARP – Home Affordable Refinance Program Eligibility  Loan through Fannie Mae or Freddie Mac  Current on mortgage payments  LTV ratio of 125% or less  Stable income Refinance mortgage with a lower interest, fixed rate with 15 or 30 year term Program ends December 31, 2013 Participation by loan servicer is voluntary

9. H.A.M.P. HAMP – Home Affordable Modification Program Eligibility  Loan through Fannie Mae, Freddie Mac, or participating servicer  Unpaid mortgage balance less than $729,750  Mortgage payment greater than 31% of gross monthly income  Unaffordability caused by income or expense change Modify mortgage with a lower interest rate so monthly payments are 31% of monthly income, term may extend up to 40 years.

10. H.A.M.P. Three month trial modification If less costly than foreclosure, servicer will make a permanent modification  Interest rate fixed, as low as 2%  If below market, adjust up 1% per year after 5 th year  Capitalize any late fees  Defer a portion of the unpaid principal  Incentive to pay on time of up to $5,000 Incentives to servicers to participate

11. Other Initiatives FHA Short Refinance & FHA2LP HOPE Now loan modification program Bank/Service Specific Programs Neighborhood Stabilization Program

12. Progress 962,000 HARP refinances completed 1.7 million HAMP trial modifications began 910,000 received permanent HAMP modifications $9.9 billion savings in monthly mortgage payments 1.1 million FHA Loss Mitigation interventions 2.6 million HOPE Now modifications NSP: 7,455 new or rehabbed units, 18,245 units cleared, and 8,494 direct homeownership assistance December 2011 National Scorecard, Departments of Treasury and HUD

13. E.H.L.P. EHLP - Emergency Homeowners’ Loan Program Eligibility  Substantial (>15%) loss of income  Due to unemployment or underemployment  Caused by adverse economic conditions or medical condition Zero interest forgivable bridge loan  Pay arrearages to bring current  Maximum 24 months or $50,000  Secured by junior lien  Forgiven over 5-year period

14. E.H.L.P. Applications were taken in 2011 through lottery Minnesota awarded 1,786 loans  442 Greater Minnesota  1,344 Metro Minnesota Housing received 1,231 applications for 840 loans Loans in process

15. Proposed Enhancements Blueprint for an America Built to Last Broad Based Refinancing  Expand HARP to non-GSE borrowers  Streamline refinancing Expand Eligibility of HAMP Homeowner Bill of Rights Pilot Sale of Foreclosed Property to Transition into Rental Housing 12 Month Forbearances to unemployed borrowers

16. www.wchra.com www.hocmn.org www.hud.gov www.housinglink.org Melissa Taphorn Deputy Executive Director Washington County HRA mtaphorn@wchra.com (651) 458-0936 Resource Links