Content provided courtesy of the Mid-America Regional Council (MARC) of Kansas City, Mo.
For the last year the country has been undergoing a crisis in defaulting “subprime” loans. These are loans that were made to higher credit risk borrowers with escalating interest and payment obligations. They come in many forms, but with the monthly payments escalating and the value of homes declining many of the loans are now being foreclosed on. It is difficult to restructure or refinance these loans because the amount owed is now more than the value of the home.
This has had an impact on credit markets and the overall economy. Unfortunately it looks like this situation will get worse before it gets better. The Kansas City metro area has formed an informal task force to address this issue. The task force is focusing on three areas:
- Providing counseling assistance to homeowners that face foreclosure
- Working with the financial community, and the federal and state governments, to see if mechanisms can be put in place to assist in restructuring the loans
- Helping local governments deal with the issue as it affects their neighborhoods and homeowners
The following webpages are designed to keep homeowners up to date on foreclosure information and resources. Important Agency ResourcesDownloadable Resource InformationAdditional Website Resources