Counseling programs for homebuyers discussed at event

August 25, 2010
Back to TopCommentsE-mailPrintBookmark and Share

This post was written by IL reporter Rebecca Berfanger.

While the Indiana Foreclosure Prevention Network continues its efforts to help prevent foreclosures through resources for loan modifications and other help for homeowners, including upcoming sessions at National Guard Armories around the state on Sept. 1, local organizations continue their work on the issue as well.

For instance, the Indianapolis Neighborhood Housing Partnership helps homeowners avoid foreclosure from the early stages of homeownership. INHP has provided counseling to homeowners before, during, and after the process of buying a home for 22 years. During its 2010 fiscal year, 1,715 families graduated from the organization’s money management or home-buyer education classes.

To celebrate the organization’s achievements and promote its current theme of Healthy Neighborhoods, Strong City, the organization hosted a breakfast Tuesday morning that featured CEO and president of the Federal Reserve Bank of Chicago, Charles L. Evans. The Fed had worked with INHP on a study of their counseling efforts, something Evans praised during his speech.

Even though INHP clients may have had lower credit scores and lower down payments compared with other borrowers, they had lower default rates on their mortgages – 3.8 percent compared with 6.3 percent for borrowers who had not gone through INHP’s counseling program, he said.

INHP will also tell potential home buyers if they are not in a good position to buy a home at this time, but they will work with them to help improve their credit scores and savings – but only if the client is also willing to work for it. Going through the program is not a guaranteed ticket to homeownership, but it will prepare those who are ready and qualified.

Evans compared the INHP counseling program to one in Chicago, which required counseling for home buyers looking to take out risky loan products. While that counseling program was found to have little effect, it still worked, he said, in the sense that because borrowers decided not to go through the required counseling for risky loans, they were less likely to take out high-risk loans. Instead, they would look for loans that didn’t require counseling.

Evans added some lenders with high-risk loans also decided to leave the market rather than go through the counseling programs and potentially be accused of predatory lending, which could also be considered something that made the program successful.

In addition to Evans’ address and question and answer session about the economy, the event included an inspiring performance by and a standing ovation for someone who was personally helped by INHP. The Harris family – Jonathan, Devonia, and their four young children – participated in the program for two years to get their credit and savings back on track to buy a home near the liberal arts high school where Jonathan teaches choir. To thank INHP and the supporters at the breakfast, he sang “You’ll Never Walk Alone.” He said the song should be the anthem of anyone who goes through what he called the “INHP Academy to Home Ownership.”

While it may be too late for those already in foreclosure who have exhausted their options or abandoned their properties, should counseling programs like the ones offered by INHP receive more attention and be more widely used on the front end to avoid future waves of foreclosures?


Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
  1. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  2. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.

  3. (A)ll (C)riminals (L)ove (U)s is up to their old, "If it's honorable and pro-American, we're against it," nonsense. I'm not a big Pence fan but at least he's showing his patriotism which is something the left won't do.

  4. While if true this auto dealer should be held liable, where was the BMV in all of this? How is it that the dealer was able to get "clean" titles to these vehicles in order to sell them to unsuspecting consumers?

  5. He has refused his Assent to Laws, the most wholesome and necessary for the public good. He has forbidden his Governors to pass Laws of immediate and pressing importance, He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance. He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation: For imposing Taxes on us without our Consent: He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation and tyranny, already begun with circumstances of Cruelty & perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.. He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless [ ] Savages, whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions. GOD BLESS THE GOVERNORS RESISTING! Count on the gutless judiciary to tie our children down and facilitate the swords being drawn across their throats. Wake Up America ...