The national advocacy organization, ACORN, recently received $7.8 million in federal grant money to help homeowners who are struggling to pay their mortgages. Among other initiatives, this has led to the creation of foreclosure hot lines, 866-672-2676 or 801-532-2225.
Even in Utah, with its comparatively strong economy, the need for such help and assistance is real, ACORN officials said Wednesday in Salt Lake City. ACORN is short for Association of Community Organizations for Reform Now.
Foreclosure-related filings increased 63 percent from April 2007 to the same month this year, according to Realty-Trac Inc., a seller of default data. In Utah, 1,318 properties, or one in every 684 households, received a foreclosure-related filing in last month. Nationally, 243,353 properties, or one in every 519 U.S. households, received a such a filing. RealtyTrac's data includes default notices, auction sale notices and bank repossessions.
In a news conference Wednesday, Utah Attorney General Mark Shurtleff urged Utahns who are having problems to "call and get help," adding that borrowers need to be cautious with companies that claim they can help homeowners avoid foreclosure. "There are plenty of scam artists out there right now."
Shurtleff said ACORN is a respected group. Counselors are available to help homeowners sort out mortgage issues and in a number of instances will work directly with mortgage companies on behalf of borrowers to work out a new repayment plan or more favorable terms.
Many struggling to pay mortgages took out loans in recent years with high fees or unfavorable terms. In Utah and elsewhere, that often meant adjustable-rate loans, which are resetting at higher rates and subsequently, higher mortgage payments.
In other instances, homeowners are having difficulty working directly with a mortgage servicing company, which may or may not be the same company that originated their loans.
Sandy homeowner Mercurion Suladdin, a volunteer with ACORN in Utah, said her mortgage company at one point threatened to foreclose. She said that just mentioning she might get ACORN involved yielded results.
"They were more willing to work with me. Just the threat that I would get them involved was enough."
