Further Development, LLC


	Projects The foreclosure crisis continues and with the emergence of lawsuits, faulty paperwork and the slow economic recovery, is likely to affect hard hit communities for years to come. Further is now working in partnership with two state housing finance agencies, in Arizona and Oregon, on an innovative strategy to prevent foreclosures. The approach in each state is to identify families that have suffered economic hardship and are in danger of foreclosure, but could afford their home at its current value. Both programs are available to families that earn up to 120 percent of the median income. After teaming with local counseling agencies to identify eligible families, Further works with partners to purchase the delinquent loans from the lenders at a price that exceeds what the lenders would realize through the drawn out and painful foreclosure process. The family is refinanced at the current value and the funds ultimately recycled. The approach is market-based, replicable and is currently being brought to scale. A short description of each project follows with links to key partners and application materials.

In Arizona


	Phoenix and its surrounding communities have some of the highest foreclosure rates in the country. These foreclosures followed a period of exploding property values from 2001 to 2006, only to see it all disappear in an even more rapid collapse of home prices and neighborhood livability.

Further has joined with Hogar Hispano, Inc. to form Second Opportunity of AZ (SOAZ). SOAZ is currently purchasing distressed mortgages and modifying them to the current appraised value of each home. The project is a partnership with the State of Arizona’s “Save Our Home Arizona” project utilizing Hardest Hit Funds from the US Department of Treasury. SOAZ has raised private funds to purchase the mortgages and then utilizes Arizona’s principal reduction program to make the loans affordable. Here is a link to a full description of the state program, which includes other components, and is available to all homeowners who qualify and whose loans can be successfully purchased: azhousing.gov

Further’s partner in Arizona, Hogar Hispano, Inc., is a non-profit community development corporation, created by the National Council of La Raza (NCLR) to support economic and community development activities nationwide with a particular focus on Arizona. Here is a link to NCLR: nclr.org

In Oregon
For the past several years, communities in Oregon have suffered from a dire foreclosure crisis that is becoming more grim.


	The median price of a home in Bend, Oregon dropped from $360,000 at the height of the boom to $175,000 in February of 2011. Foreclosures continue to escalate in both Deschutes and Jackson Counties.

The State of Oregon has opted to purchase distressed loans directly and hold them in its portfolio. Oregon is currently piloting this innovative use of Hardest Hit Funds in Deschutes and Jackson Counties, the two locales suffering the most from negative equity and unemployment. Values in both counties are down 40 percent on average from their highs during the boom. Further created the concept, helped adapt it to fit on the ground realities and is now administering the program for the State of Oregon. Oregon has received full Treasury approval for this innovative approach and has budgeted $10 million dollars for loan acquisitions with a first batch expected to close in summer of 2011. Stabilized mortgages will be refinanced so that the money can be revolved and more families helped. The goal of the project is to assist 330 families over the next several years.

Another way to enter the Oregon program is through a short sale. If the lender is willing to consider a short sale, qualifying families may work with Further Development and a local Realtor of their choice to negotiate a short sale of the home to Further Development. All homes purchased in this fashion will be immediately resold to the current borrower at the current value of the home with 30 year financing provided by the State of Oregon. This option is designed to help families whose lenders are unwilling or unable to sell loans, but would participate in the program.

Please click this link to access a State of Oregon overview of the short sale option: OHCS Short Sale Program Overview flyer.

To apply for the program interested families should go to the State of Oregon’s website for this program: https://www.ohsionline-lrapp.org and fill out an online application. New slots are made available at noon on the first weekday of every month. If the applicant appears to meet all program criteria the next step is to collect qualifying documents and send them to Further Development for review. Our contact info and methods for submitting documents will be provided once the application is complete. Once an applicant is pre-qualified by the State, Further will then work with a Realtor of the applicant’s choice or directly to contact the lenders of qualified families and seek to purchase their home or loan on behalf of the State of Oregon. While many lenders are taking part in the program, not all are interested in selling loans or homes rather than foreclosing, and as a result, success is highly dependent upon the ownership of an individual family’s loan. For those families who do not qualify for the pilot program, or whose lender is not willing to take part, the State of Oregon is offering a number of other programs that can be found at its website, http://www.oregonhomeownerhelp.org.

If you would like to keep up on the latest news and information regarding the Oregon program, please subscribe to its newsletter at: http://o.hcs.state.or.us/eNews/signup_enews.html

Oregon Homeownership Stabilization Initiative (OHSI) provides an anonymous fraud reporting hotline. If you are currently aware of, or suspect fraud, you can report it anonymously by calling 1-800-948-7688 or through our online tool. LEARN MORE: http://oregonhomeownerhelp.org/en/fraud