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Mortgage assistance program barely survived ’07 budget cuts
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The $167,000 county contribution to the Prince William County Financial Education Program was on the chopping block as the supervisors eliminated millions of dollars in county spending to avoid a tax increase in the spring.
“Obviously in light of what we’re facing in the mortgage crisis, it looks like a critical decision,” Supervisor Martin Nohe, R-Coles, said Thursday.
As foreclosures climbed by at least tenfold last year to more than 2,000, the program’s clients doubled to 166, keeping at least 100 families out of foreclosure, said Joe Botta, the manager of the Financial Education Program.
The program’s $308,000 budget, funded partly through several grants, helps homeowners stay afloat by working with lenders to sell the property or negotiate newer, affordable terms.
However, the success rate plummeted from 95 percent to 65 percent last year because many residents were approved for homes they couldn’t afford, Botta said.
Many more residents never contacted the program for help.
“The probable No. 1 thing that determines the outcome of keeping the home is affordability,” Botta said. “The person who has a temporary setback — job, sickness — is in a better position” than someone with an overly expensive mortgage.
As supervisors face a $51 million deficit this year, the program’s importance over the last year is likely to shield it from another wave of cuts in county spending.
“This is when [homeowners] need help most,” said Supervisor John Jenkins, D-Neabsco. “In my opinion, we are in a recession, and it’s not getting any better this year.”
At a glance
A look at the Financial Education Program:
» Typical year: 75 clients, 95 percent success rate
» 2007: 166 clients, 65 percent success rate
dgenz@dcexaminer.com
Comments from Examiner Readers
6:44 AM MST on Wed., Apr. 23, 2008 re: "Pr. William chairman proposes cutting $21 million in spending"
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7:01 AM MST on Wed., Dec. 19, 2007
re: "Government agency needs pile up in county despite massive deficit"
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1:46 PM MST on Mon., Oct. 29, 2007
re: "New schools, $32M deficit to dominate budget meeting"
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blue_doggette said:
Perhaps if the Supervisors signed a waiver and agreed to pay for any legal fees awarded over our 287 (g) criminal alien out of their own pockets, they would quickly appropriate the money for vehicle cameras. Going against the advice of County Attorney Horton and the CXO, Corey Stewart continues to lead the charge against these devices. Perhaps he should listen to his executive employees rather than a certain Gainesville district resident who has been giving him very bad advise.
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Examiner Reader said:
No wonder foreclosures are so high in PW county. A county of 400,000 with an estimated 70,000 illegals (at the highest). The illegals have to live somewhere....so investors buy multiple homes to use as rentals. The illegals move out because PW county cracksdown (good)....however that leaves hundreds of homes vacant....and maybe foreclosed. We'll get through this pain. The Federal Gov't caused this problem by encouraging illegals to come by their silence.....the Feds should step up and compensate PW county for the problem they caused in the first place. PW county will be fine. We'll get through this.
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Examiner Reader said:
Get rid of the Illegals and you won't need to build new schools.
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