YOU CAN:

- send us a story about how your organization is responding to the foreclosure crisis?
- Download the scan
- Read about the Scan in The Washington Post.
- Read about the Foreclosure Summit in the Washington Business Journal , on WAMU 88.5 FM, and on WTOP.

BACKGROUND:

Even as tens of thousands of families throughout our region and the nation are facing financial crises resulting from the rising tide of foreclosures, the nonprofit organizations that serve them are struggling too.  While it is difficult to separate out the specific effects of the foreclosure crisis from the overall impact of the economic downturn, the rising demand on nonprofits providing emergency assistance has spiked.  Food banks throughout the metropolitan region are reporting an increased demand of 35 percent.

Greater Washington now has one of the fastest growing foreclosure rates in the country, with families losing homes six times more frequently during the first quarter of 2008 than in 2007, according to Foreclosures in the Washington DC Region, a new study by the Center for Regional Analysis at George Mason University.  Over a one-year period through February, 15,613 homes went into foreclosure in the metropolitan area.  The GMU researchers found that although Prince William County in Virginia and Prince George’s County in Maryland have been hit hardest by the crisis, several other neighborhoods across the region are considered impending or potential foreclosure “hot spots.” The neighborhoods of Herndon, Centreville and the Route 1 corridor in Fairfax County are impending foreclosure “hot spots,” as well as the Germantown area in Montgomery County. 

Nonprofits remain on the front lines of helping consumers. But nonprofits in our region will require meaningful infusions of resources to be able to meet the demand.  Perhaps even more important, every service provider needs strong relationships with government agencies and financial institutions to be able to provide the best possible options for their clients.  Problem solving will be most effective when everyone brings their expertise and resources to the table and works together towards solutions for families in need.

The following is one of several stories we heard from nonprofit leaders on the front lines:

“The Johnson* family, a single mother with four children, came home from work and school to find a foreclosure notice on the front door of their house, which they rented. They had never missed a rent payment in more than four years. Ms. Johnson learned that she was losing her security deposit and had 10 days to move out with all of her belongings.  With money running out, Ms. Johnson Called her sister for help and there she found safety and refuge until SERVE had an opening in its shelter.  Even though they weren’t even homeowners, the Johnsons were victims of their landlord’s foreclosure.”  (*Name of family changed.)

The Nonprofit Roundtable conducted this scan of nonprofit organizations working on the front lines of the foreclosure crisis to better understand the breadth and depth of the problem, and to bring greater visibility to organizations that are hard at work. We hope that information about the service providers who are responding to homeowners in various communities, and the extent providers are currently able to find solutions for families in trouble, will inform regional leaders about the resources that need to be marshaled and where funds are needed most.  

OUR BOTTOM LINE: we hope the scan provides insight to government, nonprofit, and business leaders about how to work together to address this critical regional issue and help to the people most affected.

The Roundtable thanks Fannie Mae for support of this report and our work to highlight the important role of the nonprofit community in addressing the foreclosure crisis.