Idaho’s Foreclosure Crisis Continues, Foreclosure Counselors Fear Funding Cuts

RealtyTrac, a company that tracks foreclosures nationwide, released September data today.  In Idaho, the total number of foreclosures dropped from August to September, from 1,860 to 1,654. The state had the seventh highest foreclosure rate in the nation in September, with one out of every 391 housing units receiving a foreclosure filing.  A map of foreclosure rates by county is available here.

A comparison of this year’s third quarter numbers to the third quarter of 2010 yields somewhat sunnier news for the state and the nation.  In Idaho, the total number of foreclosure filings decreased by nearly 42 percent over that period, compared to 34 percent nationally. However, a RealtyTrac analyst predicts that foreclosure activity will begin to pick up again, as banks work through the raft of poorly filed foreclosures that resulted from so-called robo-signing.

Source: RealtyTrac

By most estimates, it will be at least several years before the foreclosure crisis abates, nationally and in Idaho.  But local organizations that provide foreclosure prevention counseling services say they could run desperately short on funding as soon as January.  That’s because the greatest share of support for such services comes from grants funded with federal dollars, and because Congress continues to struggle over the 2012 budget, for the fiscal year that began October 1st.  Moreover, Department of Housing and Urban Development funds for counseling services were zeroed out in fiscal year 2011.

According to Heather Bowman, Homebuyer Education and Counseling Administrator for the Idaho Housing and Finance Association, all of this puts them in a bind.  “I would say that we’ll do everything in our power to continue offering the services we have, but ultimately it’s going to depend upon funding,” she said.  At this time the IHFA has no plans to terminate services, and they do plan to search for additional sources of support.

Neighborhood Housing Services, Inc., another Boise-based organization that counsels troubled homeowners, is receiving less funding not only through federal sources, but also through Community Development Block Grants awarded by local communities.  Still, Director of Homeownership Counseling Tom Birch says he can’t find fault with how those local grants are being allocated.  That’s because most of the funding that has been diverted away from his organization is going toward basic problems, like hunger.  “It’s hard to argue when I’m standing with the Nampa City Council and they say we are not being considered because the money is going to Meals on Wheels!” he said.  “There’s a real need.  There’s just not enough money.”