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Foreclosure. Make Yourself at Home. Or not. |
| Written by Chuck Bean, on June 24, 2008 |
 We know that the foreclosure rate in our region is skyrocketing (Washington Post: “DC Region’s Foreclosure Rate Soars”), but we don’t always see the faces of those affected by the crisis or feel the ripple effects that foreclosures have on our families and communities. George Mason University’s new study showed that over 15,000 households in our region experienced foreclosure last year. That’s enough to fill all the seats in the new Nationals’ stadium -- with many people spilling over on to the field. Each face in the crowd shows signs of distress. Some have shown up at the doorstep of United Communities Against Poverty (UCAP) in Prince George’s. Others have sought refuge in the emergency shelter at SERVE, Inc. in Prince William. Nonprofit organizations like SERVE and UCAP work daily on the front lines of the crisis helping homeowners, renters, would-be homebuyers, and others whose financial situations are compromised by changes in the economy or housing market.
Nonprofit organizations that provide crisis assistance are familiar with providing groceries, a rent check, or funds for a utility bill – but these same nonprofits are now seeing a host of new clients with needs on a completely different scale. Nonprofits are using up emergency
funds faster than in previous years while wait lists grow. Caseworkers helping clients that face eviction are dealing with extraordinary stress – the kind that comes from the biggest financial decision a family will ever make now going horribly wrong. That stress can lead to physical and mental health problems and domestic violence.
Nonprofits that specialize in housing counseling are overwhelmed by requests for help. The fees these small organizations used to earn for originating mortgages to first-time homebuyers have dried up. Meanwhile, they are now inundated with a tidal wave of requests for foreclosure mitigation. Their staffs have shrunk at a time when demand for help has grown.
Ideally, a coordinated public-private-nonprofit strategy will quickly emerge from corporations, grantmakers, and local governments to address the needs in “foreclosure hot spot” communities. Every nonprofit needs strong relationships with government agencies and financial institutions to provide the best options for their clients. For example, we hear from nonprofit leaders on the ground an almost universal appeal for improved communication with lenders and brokers to find solutions for families at risk of default. Certainly, the solutions need to be regional and systemic. However, solutions will also need to be local and specific. Otherwise, we’ll have another 15,000 families out of their homes by this time next year. Chuck Bean, Executive Director The Nonprofit Roundtable released You Have 10 Days to Move Out: A Scan of Nonprofit Organizations Working on the Front Lines of the Foreclosure Crisis in Greater Washington with support from Fannie Mae.
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