FOR IMMEDIATE RELEASE
May 28, 2008

KNOXVILLE AREA URBAN LEAGUE OFFERS FORECLOSURE ASSISTANCE THROUGH NEW FEDERAL PROGRAM

As part of a federal effort to relieve the nationwide mortgage and foreclosure crisis, Knoxville Area Urban League is offering free homeowner assistance and counseling for residents in Knox, Blount and Anderson Counties.

As an official partner in the National Foreclosure Mitigation Counseling (NFMC) program, the Urban League now has three certified counselors that work with clients who need help with their mortgage debt.

“Until now, our counseling efforts have been more on debt management and helping people buy a house,” said Dr. Sherman Jones, vice president of the Knoxville Area Urban League. “Now our focus is on assisting homeowners who are losing or about to lose their homes. We expect our case load to double by the end of the year.”

In 2007, the Urban League assisted 115 people with foreclosure prevention/default counseling, resulting in the prevention of $14.3 million in residential property foreclosures.

Congress set aside $180 million for the new program in December in response to climbing foreclosure rates specifically tied to adjustable rate mortgages. The Knoxville Area Urban League is one of 24 agencies in Tennessee that are being funded by the Tennessee Housing Development Agency for this effort. The state has sent more than 21,000 letters to homeowners with adjustable mortgages offering this assistance.

Jones said the Urban League is ready to work with lenders and mortgage holders to help homeowners find solutions to avoid foreclosure. The service is free of charge.

“We are building relationships with lenders and mortgage companies so we can be advocates for our clients.” Jones said financial institutions are much more willing to work with homeowners now than even a year ago. “These companies realize this is a serious situation.”

Along with counseling in the Knoxville area, the Urban League is looking for space to open an office in the Morristown area in Hamblen County specifically for mortgage assistance. “Hamblen County has a foreclosure rate that is well above the state and national averages. They need special attention,” said Jones.

In addition to this new program, the Knoxville Area Urban League offers monthly Home Education Workshops for potential homeowners and post-purchase education classes for current homeowners.

“We won’t be able to help everyone save their house, but in those cases we can help families find alternative living arrangements,” said Jones.

For more information on the Knoxville Area Urban League and its programs, call (865) 524-5511 or visit http://www.thekaul.org.

The Knoxville Area Urban League, a civil rights and social service organization was founded in 1968, at the height of the Civil Rights movement, to promote equal opportunities for African-Americans in Knoxville. Today, the Knoxville Area Urban League is a non-profit, non-partisan, interracial community-based organization.

The Knoxville Area Urban League is an affiliate of the National Urban League. Established in 1910, The Urban League is the nation’s oldest and largest community-based movement devoted to empowering African Americans to enter the economic and social mainstream. Today, the National Urban League, headquartered in New York City, spearheads the non-partisan efforts of its local affiliates. There are more than 100 local affiliates of the National Urban League located in 35 states and the District of Columbia providing direct services to more than 2 million people nationwide through programs, advocacy and research.

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