ACORN releases "Road to Rescue: How the Philadelphia Model Can Reduce Foreclosures Across the Country"
ACORN’s new report (PDF) analyzes state and local initiatives to prevent foreclosures, and gives Philadelphia the gold star. The report shows that 3 in 4 homeowners who have entered Philadelphia’s program remain in their homes, which is a truly impressive success rate. ACORN attributes the program’s success to 4 factors:
1. Mandatory – the program requires lenders to participate
2. Effective outreach – struggling homeowners are aware of the program
3. Easy to use – there are few barriers to participation
4. Use of housing counselors – the nation is full of expert housing counselors who can be called upon to mitigate the effects of the foreclosure crisis. ACORN argues that Philadelphia is one of the few places that has used their expertise successfully.
In addition to replicating Philadelphia’s program across the nation, the report argues that Congress should pass bankruptcy reform, and claims that the efficacy of President Obama’s foreclosure prevention plan “depends on Congressional enactment of bankruptcy shelter for primary residences.” The Senate will likely vote on bankruptcy reform today.