Today's Detroit Free Press, and I'm sure countless other publications, reported the gloomy first quarter results from the Mortgage Bankers Association report. Foreclosures and late payments are at record high rates. Michigan's delinquency rate for all loans was at 7.84% for the first quarter, the second highest rate in the nation.
http://www.freep.com/apps/pbcs.dll/article?AID=/20080605/BUSINESS07/80605058/1020
So many (16%) homeowners now have no or negative equity in their homes. That percentage is expected to continue to increase to affect almost one in four homeowners!
Credit unions can help with financial education for members and community members who are are anxiously watching their equity drop and wondering how to weather the storm. Helpful at this time are basic money management and budgeting techniques as well as help with financial/housing counseling and information about community services. There is an abundance of misleading information and for-profit foreclosure "assistance". Credit unions need to let their members and the community know that they are a trusted source for real financial education and assistance.
I'd like to showcase the ways that Michigan credit unions are helping with financial education... What are the best ways to reach and assist members and community members? Please let me know what your credit union is doing for financial education in this area. You can post a reply on this blog and share your ideas, successes and challenges. We didn't create this mess but we can help clean it up!
Keywords: financial education, Foreclosure