Virginia Foreclosure Prevention Task Force
On Thursday, Nov. 15, 2007 Governor Tim Kaine announced the creation of the Virginia Foreclosure Prevention Task Force at the Governor’s Housing Conference in Roanoke, Virginia.
The Foreclosure Prevention Task Force, chaired by Secretary of Commerce and Trade Patrick O. Gottschalk, is charged with developing strategies to help address Virginia’s growing foreclosure rate through recommendations aimed at protecting and preserving homeownership for Virginia’s working families and communities.
Increasing foreclosure rates not only negatively impact the individuals and families involved through home loss, related financial devastation, and family disruption - but increasingly have a correspondingly negative impact on communities. Increasing foreclosure rates depress property values, the real estate industry, and have a negative impact on general community stability.
The Task Force is working to:
- Collect and analyze data to assess foreclosures in Virginia and determine approaches to mitigate the impact on communities and localities.
- Identify and increase access to existing resources available for homeowners to minimize the number of foreclosures.
- Recommend outreach, counseling and educational programs and activities that focus on foreclosure prevention and support to homeowners.
- Review existing Virginia laws and regulations and recommend appropriate revisions, including legislative actions if needed.
Foreclosure in Virginia
Although Virginia’s foreclosure rate remains slightly under the national rate, the Commonwealth’s rates are steadily rising, doubling from the first quarter of 2006.
Presently foreclosures are most concentrated among subprime loans. In the second quarter of 2007, 5,800 Virginia homes were in foreclosure, 4,000 of which involved subprime loans.
Data indicates that many of Virginia’s subprime adjustable rate mortgages have not yet reached the first adjustment period which typically triggers the type of financial crisis that can often end in foreclosure, when families are not able to afford the higher interest rate. Therefore, as these rates adjust upwards, analysts expect to see a corresponding escalation in foreclosures.
About the Task Force
- Task Force Members >> PDF
- Task Force Meeting Dates >> PDF
Foreclosure Related Reports and Publications
- NGA: State strategies to address foreclosures >> PDF
- CRS Report to Congress- Housing Issues >> PDF
- CHCI: Sustainable Homeownership >> PDF
- CRL: The Effect of Race and Ethnicity on the Price of Subprime Mortgages >> PDF
- CRL: Subprime Spillover >> PDF
- FPTF: Background >> PDF
- CRL: Foreclosures in the Subprime Market and Their Cost to Homeowners >> PDF
Press Releases
- Governor Kaine Proposes Legislation to Protect Homeownership >> PDF
- Governor Kaine Announces Formation of Virginia Foreclosure Prevention Task Force >> PDF
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