As Foreclosure Houses in Iowa Continue to Rise, State Uses Federal Money to Step Up Anti-Foreclosure Campaign

In an effort to combat the wave of house foreclosures in Iowa, the state is planning to fund new programs designed to provide troubled homeowners with advice on how to keep up with their mortgage and avoid foreclosure. The plan also seeks to include resources for Spanish speaking homeowners.

Using roughly $500,000 in federal funds, the state Attorney General and the Iowa Finance Authority plan to award a foreclosure mediation company located in Des Moines a great sum of money in order to gear up their efforts so that they can reach more homeowners. The center has already dealt with more than 8,000 residents facing house foreclosures in Iowa, and judging by their success, the state decided to assist them.
The group, known as Iowa Mediation Service, will most likely use the money to increase staff, so that they can keep a high level of service in dealing with more people. The service aims to help homeowners by providing advice on what to do when confronted with a default notice. From selling, to refinancing to working out deals with lenders, the service specializes in trying to reduce the number of house foreclosures in Iowa.

A great deal of money is also expected to finance advertising for a new foreclosure hotline designed to inform those threatened with house foreclosures in Iowa. Citing the fact that roughly 50% of homeowners never so much as speak with their lender before a foreclosure occurs, state officials believe raising awareness as to options is the best way to combat foreclosures.
The market for house foreclosures in Iowa has been steadily growing for sometime, with the total inventory of foreclosure homes in 2007 almost double what it was in 2002. The state currently holds the spot for 14th highest rate of foreclosure on the national list. Investors looking to get involved in Iowa real estate can find great deals in cities like Des Moines and Iowa City, but the real prize in this rural state is land. Foreclosed land can be purchased for extremely cheap values, and the potential for various uses is high. Many buyers are finding great deals on foreclosed land in Iowa and using it to build homes, rent farmland, or in some cases, sell it off for a profit.

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