Lt. Governor Carney, Task Force Members Release Recommendations On Foreclosure
Lt. Governor John Carney was joined today by Wilmington Mayor James Baker and members of the Foreclosure Task Force to release an interim report outlining short-term recommendations the task force determined are needed to address the growing foreclosure crisis facing many Delaware homeowners.
"By now, the foreclosure crisis throughout Delaware and the country is well known," said Lt. Governor Carney. "We know the difficult situations that many homeowners find themselves in. I think the members of this Task Force have done a great job of determining how Delawareans are being affected by this growing issue and developing recommendations that will help right now."
Using data compiled by the Delaware State Housing Authority, the interim report shows a 57% increase between 2006 and 2007 in the number of loans considered "seriously delinquent" (more than 90 days). The report also shows a 90% increase in the number of mortgages in foreclosure over the same time period. A disproportionate amount of these loans in delinquency are adjustable rate, sub-prime mortgages.
"As is shown in the recommendations, the best way we can help people is to make sure they know their current situation, as well as what they might face in the next 18 to 24 months," said Lt. Governor Carney. "Education is the key to helping people understand their options and take action before it's too late."
The task force's interim report contains six short-term recommendations designed to help Delawareans avoid foreclosure over the next six months:
- Target outreach efforts to homeowners in zip codes with 400-plus sub-prime mortgages or with seriously delinquency rates exceeding 9%
- Fund the Delaware Mortgage Assistance Program (DEMAP) through June 30, 2008.
- Increase mortgage default and foreclosure counseling efforts by funding seven new counselors for the state's housing counseling agencies.
- Fund and implement a marketing program to ensure that homeowners who fall behind on their payments know what resources are available to them.
- Implement the federal foreclosure relief program proposals, including FHA Secure, to the fullest extent possible.
- Monitor monthly foreclosure filings to benchmark performance and revise task force activities as appropriate.
Earlier this week, Mayor Baker announced that the City of Wilmington has committed $100,000 towards the DEMAP program, as well as $50,000 to fund housing counselors. Discussions have already been held with New Castle County and meetings will be requested with Kent and Sussex counties.
"Foreclosure is a national, statewide, and local problem," said Mayor Baker. "We will continue to do whatever we can within our resources to help keep people in their homes."
"The work of the Task Force and the recommendations we have today are a good start, but there is still a lot of work to be done," added Rep. Keeley. "This report and the support of the Task Force members will be very helpful when I go to Dover next month and ask the Legislature to provide more funding for foreclosure relief programs."
The Foreclosure Task Force was formed by Lt. Governor Carney in October 2007 to gather data and information on the growing issue of foreclosures in Delaware, and to develop short and long-term recommendations to address the problem. The Task Force includes members from the private, public, and non-profit sectors.
You can view the Foreclosure Taskforce Interim Report here.
For more information, please see the corresponding WDEL video coverage
###
