Richard Crawford of the Chanhassen Villager:

While sheriff’s sales of foreclosed properties in Scott County clip along at a record pace, one bright spot is homeowners are finding it easier to modify existing loans.

That’s the assessment of Carver County Community Development Agency counselors, who provide free advice to homeowners in Carver and Scott counties.

Foreclosures in Scott County have already surpassed last year’s record, with approximately 770 as of Monday.

A notable recent trend — which housing counselors see as a positive sign — is the number of homeowners seeking assistance prior to going through foreclosure.

In part because of a new law that took effect in August, more people are taking advantage of the free counseling provided by the agency. In September, the number of people seeking help doubled from 68 in August to 141 in September.

“It’s slowing down that process,” said Brenda Lano, housing counselor and certified foreclosure prevention specialist. “It used to be, by the time they found out about us, they were being served the sheriff sale notice.”
Counselors can help explain options to homeowners and lay out all available options.

One positive development for struggling homeowners is a recent trend of lending institutions being more willing to modify existing mortgage loan rates.

“The ability to move from an ARM to fixed-rate loan has improved substantially in recent months,” Lano said.

The agency provides housing assistance to residents in Carver and Scott counties. While foreclosure cases have stabilized in Carver County, they continue to spike in Scott County, where 106 sheriff’s sale foreclosures occurred in September, compared to 28 in Carver County.

Counselors don’t believe housing troubles will slow down in the near future.

“We don’t think we’ve hit rock bottom,” Lano said. “The economy is very hard on many people.”

Another recent trend that is cause for concern is the number of people with fixed-rate mortgages who have contacted the agency in recent months.

Even some people with fixed rates under 6 percent are struggling to pay their mortgages, Lano said.

She encourages homeowners who are struggling to contact the agency as early as possible to identify available options.

Richard Crawford is the editor of the Chanhassen Villager. He can be reached at editor@chanvillager.com [2]. Shannon Fiecke contributed to this report.