Coastal Enterprises Inc. (CEI) is pleased to announce the addition of two foreclosure prevention counselors to help borrowers who are in foreclosure or at risk. CEI was able to increase its foreclosure prevention capacity as a result of a new contract with the state Bureau of Consumer Credit Protection, which has taken a lead role in outreach, referrals and counseling to homeowners in trouble.
Counselors, state regulators and the courts are gearing up to respond to an increase in demand as the new Judicial Foreclosure Diversion program rolls out statewide. This mediation program, created by the passage of LD 1418, “An Act To Preserve Home Ownership and Stabilize the Economy by Preventing Unnecessary Foreclosures,” provides homeowners in foreclosure the opportunity to participate in court-sponsored mediation and possibly save their homes through a loan modification or other solution equitable to both the borrower and the lender.
Funding for the additional counselors comes from an assessment on lenders at foreclosure auctions.
CEI has worked to support foreclosure prevention and consumer protection efforts for the past several years, and has provided HUD-certified Housing Counseling services since 1996. In the past two years, as the housing crisis and then a nationwide recession hit Maine, CEI saw its caseload rise exponentially.
“Two years ago, we provided foreclosure prevention counseling to 40 clients and we thought that was a lot,” said Laura Buxbaum, Director of Housing Resource and Policy Development for CEI. “Last year, we served nearly 300 residents facing foreclosure. The need is even greater now that the Judicial Branch’s mediation program is up and running. Thanks to the new foreclosure prevention law, homeowners now have a hope of saving their homes by meeting directly with their lender and a mediator to try to work something out. Our job is to help these homeowners understand and prepare for the process.”
These hirings are part of an effort on the part of a state government agency, the Bureau of Consumer Credit Protection, to increase capacity statewide. “Our office has sent out over 13,000 informational packets to homeowners who are behind on their mortgages,” said Will Lund, Superintendent of the bureau. “More than 700 consumers have called our free foreclosure prevention hotline, 1-888-664-2569, as the result of this outreach, clearly pointing out the need for additional counseling services. We have contracted with CEI and seven other organizations to provide services all over the state. Each new counselor will be able to assist at least 125 borrowers in the course of a year. With added counselors and the new court mediation program in place, more mortgages will be modified and homes saved.”
CEI’s two new counselors, Jason Thomas and Mechelle Nash, join program manager Diane Sherman in providing foreclosure prevention counseling to residents in the midcoast area and statewide.
Coastal Enterprises Inc., is a Community Development Corporation (CDC) and Community Development Financial Institution (CDFI) founded in 1977. CEI’s mission is to help create economically and environmentally healthy communities in which all people, especially those with low incomes, can reach their full potential.
