With a potential recession looming, homeowners are feeling the pinch.
The foreclosure numbers aren't what we saw back in 2008 or even pre-pandemic, but they are increasing.
"We're seeing an increase in foreclosure,” Kim Freeman, the assistant director of the home ownership program with Oregon Housing and Community Services (OHCS), said. “But it's not to what it was pre-pandemic or even the recession of 2008 and the mortgage crisis; it's a small but steady increase.”
According to the data company ATTOM, the number of foreclosures this October was 57% higher than last October.
Freeman says people struggling with payments should reach out for help. OHCS has home ownership centers across the state.
"They serve all 36 counties,” Freeman explained, saying counselors are there to help. “Housing counselors are certified to provide neutral resources to review your financial situation, meaning they're gonna go over your budget, your income, your living expenses, look to how you can ensure that you make your mortgage payment. And then if and when you need assistance prior to foreclosure again, you're gonna meet with a housing counselor who can assist you to work with your lender to find the best option for you.”
You can find a list of those centers, here.
One of the resources available for Oregonians right now is the federally funded Homeowner Assistance Fund (HAF). It allocated $9.961 billion to help people hurt financially by the pandemic stay in their homes.
Ryan Vanden Brink, the assistant director of homeowner assistance programs, is helping get Oregonians this money.
“Homeowner Assistance Fund is a federal assistance program that helps homeowners who fell behind during the pandemic,” Vanden Brink said. “The Homeowner Assistance Fund can help them catch up on their mortgage payment, their HOA property taxes, other housing costs, and then for some homeowners, it will help them make future payments.”
In addition to the need for help being tied to a financial loss from the pandemic, there are also income limits to get HAF help.
The limits, however, are pretty generous.
For example, a family of four living in the tri-county area can make up to $159,750 to apply for assistance with past due mortgage payments and other delinquent housing costs. That same family living in the same area could make up to $106,500 to apply for assistance with ongoing mortgage payments.
A family can get up to $60,000 worth of assistance through HAF.
You can see all income requirements here.
Martin P. Sanchez, vice president of mortgage sustainability for Wells Fargo, says people hurting should also be reaching out to their lenders for help. They may be able to get a pause on payments.
“Most important thing is if you're struggling with your mortgage to contact your lender, your servicer directly, to ask for assistance,” Sanchez said.
Sanchez notes there’s also additional help for specific groups.
“The Treasury set aside a separate $498 million just for tribes, tribal housing entities. department-wide homelands and Alaska natives to help keep people housed,” Sanchez said.
Wells Fargo has more info on that here.
To try and prevent foreclosure, a senior economist from ECONorthwest says you should cut back your spending. He notes eliminating eating out (everything from bars to coffee shops) can save a household $1,500 a month.
You can also reach out to your utility company if you are struggling with payments to see if they can pause your bills or cover some costs.