Foreclosure Prevention Saved Minnesota Approximately $300 Million in 2008

Nearly 5,000 Foreclosures Prevented Last Year

ST. PAUL, Minn., April 29 /PRNewswire/ -- Nearly 5,000 foreclosures were
prevented in Minnesota last year, saving home owners, lenders, neighborhoods
and local governments up to approximately $300 million, according to a study
released today by the Minnesota Home Ownership Center. Within this total, the
state's local governments alone saved approximately $90 million because of the
foreclosures prevented.

The report, titled "2008 Foreclosure Counseling Program Report," analyzed
information collected from home owners seeking foreclosure counseling and
counseling outcomes from the Minnesota Home Ownership Center's statewide
network of mortgage support advisors. Last year 11,809 home owners received
counseling from a mortgage support advisor - a 145 percent increase over the
number of home owners counseled in 2007. At the end of 2008, 2,775 of these
cases were still pending.

"Counseling services through our statewide network of nonprofit partners are
providing meaningful outcomes for Minnesota home owners, communities, lenders
and local governments," said Julie Gugin, executive director of the Minnesota
Home Ownership Center. "We are pleased to report that more than 4,300 families
remain in their homes today because of our counselors' work."

The study also provided a glimpse into the demographic and financial
circumstances of struggling home owners who sought help from mortgage
counselors.

According to the experiences of those seeking counseling in 2008, personal,
mortgage and financial struggles are converging on many home owners in
Minnesota. The experiences reported by home owners offer new insights, such
as:
-- Home owners are balancing mortgages on less income. The majority of
home
owners seeking help faced either a reduction in income (35%) or a
total
loss of income (15%) since first taking out their mortgage. These
figures are consistent with the income challenges reported by home
owners in 2007.
-- Mortgages have become unaffordable for many. More than two-thirds of
home owners seeking counseling dedicate more than 30% of their monthly
income to their mortgage - a recognized standard of an unaffordable
mortgage. Nine percent of home owners reported dedicating more than
75%
of their income to their mortgage payment.
-- Parents are facing foreclosure more often than single adults. Last
year
56% of the home owners who sought counseling had children or
dependents
living in the home with them.
-- Middle-aged families are being hit hardest. Home owners ages 35 to 54,
made up 62% of the home owners who sought counseling in 2008.

-- Young adults are being disproportionately impacted by the housing
downturn. Home owners 34 years old and younger made up 22% of the home
owners seeking counseling last year. For perspective, young adults
have
a home ownership rate of 46% among people 25 to 34 years old, and an
18%
home ownership rate among those less than 25 years old. This compares
with a home ownership rate of 66% and higher among adults over 35
years
old, according to the U.S. Housing Census.

"The data collected by our counselors through the course of their work is
painting a new, clearer picture of the home owners in Minnesota who are
struggling," said Gugin. "We're seeing that the economic downturn,
unconventional loan products and everyday life - from the birth of a child to
divorce and unexpected illness - are converging on many home owners and making
their mortgage increasingly unaffordable."

Minnesota experienced 26,000 foreclosures in 2008 and this rate of foreclosure
is expected to continue into 2009. As Minnesotans struggle with their finances
amid current economic conditions, the Minnesota Home Ownership Center will
continue providing free counseling and support to home owners seeking help in
managing their mortgage. The services are available for free at 26 nonprofit
partner agencies covering all of Minnesota.

"As the economy and mortgages continue to falter, the Center will continue
reaching out to home owners across the state to let them know about this free
resource that they can trust," added Gugin.

As part of this effort to reach more home owners earlier in their mortgage
struggles - when more options are available to them - the Center has developed
a checklist of questions that home owners can reflect upon to assess their
situation. The questions are:

-- Are you worried about being stuck in your mortgage?
-- At the end of the month, do you find yourself struggling to get ahead,
or even to keep up?

-- Are you questioning the future because you worry about how you will
make
ends meet today?

Those who answered "yes" to any of the questions should consider contacting
the Minnesota Home Ownership Center toll free at (866) 462-6466 or to
submitting a question online at www.hocmn.org to connect with a mortgage
support advisor in their area.

Minnesota Home Ownership Center is a nonprofit organization that promotes
successful and sustainable home ownership for low- and moderate-income
Minnesotans through counseling and education services for first-time home
buyers and those struggling with foreclosure. The Center coordinates and
provides programming and technical assistance to a statewide network of
nonprofit agencies providing direct services.

2008 Foreclosure Counseling Report analyzes data collected from owner-occupied
home owners who received foreclosure counseling from the Minnesota Home
Ownership Center's network in 2008. The full report is available online at
www.hocmn.org.

SOURCE Minnesota Home Ownership Center

Julie Gugin of Minnesota Home Ownership Center, +1-651-659-9336,
julie@hocmn.org