Dane County Foreclosure Prevention Taskforce discusses alternatives to foreclosure

Over 40 people attended the March 29 meeting of the Dane County Foreclosure Prevention Taskforce, aimed at spreading homebuyer education and information about resources available to homeowners who have been served foreclosure notices.

“Foreclosure is not something you have to face yourself, it is not something to be ashamed of,” Dan O’Callaghan, co-chair of the Taskforce said at the meeting, held at the Atrium of the Villager Mall on S. Park Street.

The meeting featured talks by O’Callaghan, Mayor Paul Soglin, Dane County Treasurer, David Worzala and County Executive, Joe Parisi. Speakers stressed the importance of homebuyer education in suppressing the foreclosure “epidemic” in Dane County.

According to O’Callaghan’s statistics, Dane County saw nearly 1,800 foreclosures in 2010, and though that number decreased in 2011, early 2012 values indicate another uptick in foreclosures. 

“The problem [of foreclosures] is real and severe,” O’Callaghan said.  

Mayor Paul Soglin added that when factors like credit score are controlled for, homebuyer education is the most influential factor in determining whether or not someone is foreclosed upon. Rates of foreclosure are highest amongst those with limited or non-existent homebuyer education.

“We cannot overemphasize the importance of homebuyer education,” Soglin said, citing his staff’s research and his own personal experiences.

Given the importance of homebuyer education, it is hardly surprising that the meeting emphasized the importance of reaching families and homeowners before they get to the point where their home has been foreclosed upon. 

However, the Taskforce finds that this is the most difficult aspect of the job because of social stigma—many homeowners struggling with their mortgages are often embarrassed by their financial troubles and will not reach out on their own. 

For O’Callaghan and Ellen Bernards, the other co-Chair of the Taskforce, the goal of the meeting was to spread awareness of their services in the community, and reach people struggling with their mortgages before they reach foreclosure.  The Taskforce offers loan modification workshops, legal clinics, mediation programs, and information and referral systems.

O’Callaghan added that the Taskforce has been successful in serving those in trouble. He said 62 percent of families that have used the Taskforce’s free mediation program are still in their homes today.  Those were families who had already been served foreclosure notices, but through mediation and other services, were able to work with lenders to avoid foreclosure. 

“The sooner you reach out for help, the more options you’re going to have to address the problem.” O’Callaghan told community members.

“We would be in much worse shape in the county if we didn’t have [the Taskforce’s] help” Worzala said during his talk at the meeting.  He discussed how failure to pay property taxes can be an indication of financial troubles that can lead to foreclosure. 

Worzala added that the Taskforce and GreenPath Debt Solutions, a non-profit credit counseling agency, have been invaluable in helping people deal with back taxes and the threat of foreclosure.

When the floor was opened up to the community, several volunteers from GreenPath and Legal Action Wisconsin reiterated the Taskforce’s success so far, and emphasized ways in which they could do more to reach people struggling with foreclosure. 

Some suggested using banks to reach homeowners struggling to make mortgage payments and property tax payments.

“[Struggling homeowners] get behind, they don’t know where to turn, and they give up,” one community member said. “So we need more voices, we need more visibility, I think we need to get into the home during the first month they’re in jeopardy of being behind… How can we do that, is the question.”

There was also some dissent, as a member of Occupy Madison’s Foreclosure Workgroup discussed his workgroup’s search for foreclosures in Madison.  While Mayor Soglin’s data indicates that there are no neighborhoods with disproportionately high foreclosure rates, his group found that the area of East Washington, around the 2300 and 2400 block, has two vacant homes and another three homes at a pre-foreclosure stage.

The Taskforce reiterated their support for not only those people who are struggling with foreclosure, but also for community members who want to get involved and help families deal with the threat of foreclosure.  

“It’s not hopeless, it’s not a lost cause, we can help,” said O’Callaghan.

For a full listing and description of the assistance offered by the Taskforce, visit their website.