In March 2008, ABC convened housing advocates, counselors, financial institutions, and government representatives to form the Foreclosure Intervention Action Team and formulate a plan to protect homeownership and prevent foreclosures.
Under the leadership of the Urban League, ABC members held three free community workshops geared at helping homeowners find solutions to their mortgage problems. The workshops included experts from housing counseling agencies, attorneys, and regulatory agencies. Discussions were held on various mortgage products and what to do if your mortgage falls behind, how to recognize foreclosure rescue scams, and how to avoid predatory lending practices. Following the panel discussion, housing counselors provided one-on-one housing counseling advice, and loss mitigation teams from mortgage servicers provided individuals with the opportunity to try to work out or modify their existing loans.
Attorneys and housing counselors on the Team are currently working on proposed legislation to give homeowners facing foreclosure the right to mediation with their mortgage servicer in an effort to modify the loan before allowing the foreclosure procedure to proceed. In addition, the legislation would provide renters with sufficient notice of foreclosure before eviction.
The City of Seattle has also provided $200,000 through two ABC partners for at least 40 families to provide stabilization loans, pre-foreclosure counseling, and repayment plans to help low-income families in danger of losing their homes.