Philadelphia, PA. - January 04, 2007 - The Urban League of Philadelphia will be joining with The National Urban League and the Homeownership Preservation Foundation to hold a press conference at City Hall in the Mayor's Reception Room 202 on Tuesday, January 9th at 12 noon, kicking off a new program designed to help area homeowners avoid foreclosure.

Participants will include: Philadelphia Mayor John F. Street; Marc H. Morial, President of the National Urban League; Patricia A. Coulter, President of the Urban League of Philadelphia; Colleen Hernandez, President of the Homeownership Preservation Foundation; and Sharon Sayles Belton, Board Member of the Homeownership Preservation Foundation.

The National Urban League Foreclosure Prevention and Education Program will target the African-American community in Philadelphia, where increased foreclosures are threatening gains made in homeownership over the past decade.

As part of the partnership, the National Urban League will support the promotion of the foundation's 888-995-HOPE hotline, which is available 24/7 nationwide to homeowners concerned about their finances and the possibility of foreclosure. Callers receive free, confidential advice from expert counselors from HUD-approved counseling agencies. Those who are in need of additional face-to-face counseling and education will be referred to the Urban League affiliate in their city.

Foreclosure rates in Philadelphia and Pennsylvania are above average and rising. For the first quarter of 2006, the city ranked 25th nationwide for foreclosures, according to RealtyTrac, Inc., which tracks properties in some stage of foreclosure. In September, the entire Philadelphia metropolitan area had one foreclosure per 1,016 households. In Philadelphia County, where the heart of the city lies, it was one foreclosure per 662 households.

During the third quarter of 2006, the number of foreclosures in the entire state grew 26.5 percent, compared to the same period in 2005, according to RealtyTrac Inc. There was one foreclosure per 587 households, putting Pennsylvania in the top 21 states for foreclosure rates.

In recent years, increased availability of credit has allowed more African American families to own their own homes than ever before. However, rising foreclosure rates threaten to erode those gains. Some of the reasons for the rise in foreclosures include a slowing economy, job losses, and high debt loads on tight family incomes. Many low-income and minority homeowners had mortgages that were initially more flexible for their circumstances but now are finding themselves in a bind as their mortgage rates adjust upward.

The National Urban League Foreclosure Prevention and Education Program is focused on prevention and intervention and aims to reduce the numbers of foreclosures among African American homeowners. It is part of a partnership in which the Homeownership Preservation Foundation is providing up to $1.2 million over a 3-year period to help the National Urban League and its local affiliates provide free foreclosure prevention counseling and education to African-American homeowners in Philadelphia, St. Louis and Houston, where foreclosure rates are hitting new heights. The program includes mortgage default counseling, post-purchase education and a toll-free homeowner helpline (888-995-HOPE).

"Our partnership with the National Urban League and the Homeownership Preservation Foundation will help more African Americans in our city to preserve not only their homes but their credit record and help them continue to grow financially," said Patricia A. Coulter, President and CEO of the Urban League of Philadelphia.

Colleen Hernandez, the foundation's president, said the free foreclosure prevention counseling hotline - 888-995-HOPE, has already assisted tens of thousands of homeowners nationwide. We look forward to helping the entire Philadelphia community avoid the downward spiral of foreclosure, she said.

Foreclosure not only does irreparable damage to individuals and their families but also impacts the community, neighborhood and the lender, added Sharon Sayles Belton, former mayor of Minneapolis and a member of the foundation's board. We must all work together to reduce the above-average foreclosure rates in Philadelphia -where one of every 662 homes falls to foreclosure.

Katie Taylor, Director of Housing and Financial Education at the National Urban League, stated that the National Urban League is proud to be a partner in this significant pilot program. She also notes that the Philadelphia affiliate is a very important part of this pilot foreclosure prevention initiative. They have a great legacy of service in housing counseling and financial education and will play a critical role in helping to stem the tide of foreclosures in the city.

The program consists of default counseling, involving intensive counseling with homeowners to help them avoid foreclosure, and post-purchase homeownership classes that will cover such topics as budgeting, property and school taxes, debt management, home maintenance and repair.

Everyone suffers from rising foreclosures. The average cost for a lender is high --$58,759.00 per loan on average, according to a 2002 TowerGroup analysis. Foreclosures adversely impact the financial stability, credit records and future borrowing ability of homeowners, who may also face higher costs to replace housing and possible tax consequences. Cities with significant foreclosure rates face high property rehabilitation costs, and neighborhoods face lower property values and decreased marketability.

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