CHARLOTTE’S INITIAL FORECLOSURE STRATEGY SUMMARY
April 18, 2008
PROBLEM DEFINITION
The growing number of housing foreclosures is a major issue both nationally and locally.
Between 2000 and 2007, the number of foreclosure filings in Charlotte-Mecklenburg increased
244 percent, from 2,311 to 7,943 filings. It is estimated that approximately 50 percent of all local
foreclosure filings have resulted in the loss of a home.
Foreclosures have brought financial ruin to families, reduced property values in neighborhoods,
and resulted in abandoned housing that, in some cases, has been vandalized and become
havens for criminal activity. One unanticipated impact of the local foreclosure crisis is the large
occurrence of foreclosures in some neighborhoods that are less than five years old. These
foreclosures have created conditions similar to those in some of the city’s revitalization
neighborhoods.
PROGRAM OBJECTIVES
ƒ Link property owners faced with foreclosure to financial counseling resources.
ƒ Provide information about financial resources and mortgage assistance to residents faced
with foreclosure.
ƒ Address priority neighborhoods whose quality of life is affected by high foreclosures rates
with a neighborhood preservation approach in collaboration with private and non-profit
agencies and initiatives.
PROPOSED FORECLOSURE STRATEGY
I. Education, Outreach and Advocacy (City-wide)
A) Monitor and support, as appropriate state and federal legislation related to the
foreclosure crisis.
B) Establish a city website for resources/referrals with links to national, state and local
organizations providing assistance.
C) Conduct targeted information/outreach campaign to residents in highly impacted
foreclosure neighborhoods so they will know where to seek help.
D) Work with local pre and post-homeownership counseling agencies to increase services.
E) Coordinate with financial institutions to make mortgage assistance information available.
F) Work with state and federal agencies to implement foreclosure prevention and
intervention strategies.
II. Neighborhood Preservations Strategy(Local)
A) Select highly impacted neighborhoods to participate in a pilot project (proposing
Peachtree Hills )
B) Form neighborhood preservation team (Includes public, private, non-profit and resident
members)
C) Establish Neighborhood Preservation Goals
D) Develop Coordinated Strategy
1.) Community Safety
2.) Code Enforcement
3.) Foreclosure Prevention/Financial Literacy Counseling
4.) Housing Purchase/Rehabilitation/Resale
5.) Infrastructure
6.) Neighborhood Capacity Building
7.) Employment
8.) Social Services
9.) Youth Involvement and Engagement
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E) Develop Implementation Plan/Budget
F) Monitor/Report Progress
CONCLUSION
The goals of this strategy are to increase public awareness of the foreclosure problem and
address specific neighborhood impacts resulting from high incidences of foreclosure. The first
goal will be achieved through dissemination of information and resources that housing providers
and consumers can use to address foreclosure problems. The second goal is aimed toward
quickly turning around and stabilizing neighborhoods that are highly impacted by foreclosures.
Achievement of these goals will help the city transition through the foreclosure crisis.
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