Avoiding foreclosure in Bureau County

Bureau County homeowners struggling to avoid foreclosure are advised to look for help before it's too late. The Illini Valley Association of Realtors advises homeowners to consider a mortgage modification to help make their mortgages more manageable. (BCR photo/Barb Kromphardt)

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While foreclosure rates in Bureau County don’t begin to reach the sky-high rates of Nevada and California, the thought of losing their homes is still keeping many local homeowners awake at night.

The number of home foreclosure filings in Illinois fell in April but still were significantly higher than a year ago. A report released Wednesday shows Illinois ranks eighth nationally in the foreclosure rate. The state saw about 13,600 filings last month, which include default notices, auction-sale notices and bank repossessions. That's an 11 percent drop from March, but 54 percent higher than April 2008.

According to Bonnie Lester, president of the Illini Valley Association of Realtors, job losses or other financial setbacks are making it harder for some homeowners to make their mortgage payments.

“Foreclosures affect not just the homeowner but also the community as a whole so it is in everyone’s best interest to make sure more people keep their homes,” Lester said. “For homeowners who fear falling behind, there are options that can help you make your mortgage more manageable.”

One of those options is the new Making Home Affordable program, which is aimed at helping as many as nine million eligible homeowners refinance or modify their mortgage loans. One criterion for being eligible is that the mortgage payment exceeds 31 percent of the owner-occupant’s gross monthly income.

Lester said a good first step is to contact a foreclosure avoidance counselor through the U.S. Department of Housing and Urban Development who can provide free assistance. A new law gives troubled homeowners facing foreclosure up to a 90-day grace period to work with lenders and housing counselors to avoid foreclosure.

According to the HUD Web site, Bureau County residents should contact Central Illinois Debt Management and Credit Education Princeton branch at (888) 671-2227, ext. 122, which provides services to homeowners ranging from Champaign to Galesburg.

Executive Director Janice Parker said the calls have been coming in quickly.

“We’re swamped, and we’re glad of it,” she said.

Parker said according to the latest report, 37 Bureau County properties are in pre-foreclosure or foreclosure, and 86 local homeowners have contacted them in the last year. She isn’t glad that people are in trouble, but rather that they are seeking help before it’s too late.

“Before, we were getting calls from owners with ‘For Sale’ signs in their front yards,” she said.

Now, they’re getting calls from people who have received notice from their lenders that they’re near, but not yet at, foreclosure.

Parker said their counselors work as the mediators between the homeowner and the lender, determining whether the owner can afford their home, or whether other alternatives are necessary.

“We strongly encourage homeowners that, before they get behind, to call for help,” she said. “We have more resources then than before you are in foreclosure.”

For more information on foreclosure options or to report fraud, go to Illinois Attorney General Lisa Madigan’s Homeowners Helpline at (866) 544-7151 or www.illinoisattorneygeneral.gov. Another resource is Illinois Legal Aid at www.illinoislegalaid.org.

“There are legitimate programs and resources in place to assist homeowners who are struggling to keep their homes, so they don’t have to feel like they are in this alone,” Lester said.