A Cry for Help: Foreclosure Prevention Hotline Shatters Records

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RISMEDIA, Jan. 17, 2008-Is foreclosure becoming an epidemic in our country? If the numbers being reported to the Homeownership Preservation Foundation’s Homeowner’s HOPE^TM Hotline are any indication, there is cause for concern.

More than 143,000 calls from distressed homeowners were fielded by the HOPE^TM Hotline in the fourth quarter of 2007, twice the number of calls received during the third quarter and nearly 10 times that of the first quarter of the year.

The Homeownership Preservation Foundation (HPF) is a nonprofit organization that operates a national 24/7 hotline – 888-995-HOPE. The hotline provides free, bilingual, personalized assistance to help at-risk homeowners avoid foreclosure.

In December 2007, the HOPE hotline became the primary contact point for homeowners with delinquent mortgages, as part of the HOPE NOW Alliance, the Administration’s initiative to stem America’s foreclosure crisis. HPF is a member of the HOPE NOW Alliance of mortgage servicers, mortgage market participants and counselors. According to HPF, more than 37,000 homeowners received counseling during the fourth quarter alone – more than three times the 10,000 completed sessions in all of 2006.

“We’re encouraged because more homeowners are being proactive in reaching out for help,” says Colleen Hernandez, president and executive director of HPF. “Mindful of the significant call volume following the President’s announcement, HPF established a triage response system that offers resources to those who need information and directs callers who need foreclosure prevention counseling right to counselors, allowing us to operate more effectively.”

Among homeowners who called 888-995-HOPE, 31% were less than one month behind in mortgage payments up from 24% during third quarter 2007.

“It’s reassuring that homeowners are addressing their mortgage issues earlier, however we need to continue to reach out to troubled homeowners to let them know there is help available,” said Hernandez. “No matter the situation, HPF can provide options and information to keep more Americans out of foreclosure.”

Key Statistics – Fourth Quarter 2007

Foreclosure can happen to anyone, regardless of socioeconomic status, demographic or type of mortgage. The following are current trends observed by hotline counselors:

- California continues to be the top counseled state, accounting for 18% of the total call volume; Ohio ranked second (9%) and Illinois rounded out the top three with (5%).
- Adjustable-rate mortgages, in aggregate, made up 48% of calls; fixed-rate mortgages accounted for 28%.
- 61% of callers reported annual household incomes of less than $42,000; 15% of callers reported annual incomes of more than $60,000.

For more information, visit www.995hope.org.

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