WASHINGTON, DC- U.S. Senator Bob Casey (D-PA) today wrote to television stations throughout Pennsylvania urging them to air public service announcements (PSAs) that direct homeowners facing mortgage default and foreclosure to a toll-free hotline where they can receive free advice from financial professionals. A similar letter will be sent to radio stations next week.
“The subprime mortgage crisis that has been occurring nationally has left many Pennsylvania homeowners at risk of losing their homes and in need of guidance,” said Senator Casey. “Homeowners need to know that help is out there for them. Airing these ads as soon as possible would raise the possibility of preventing foreclosures with timely intervention and would assist Pennsylvania communities in overcoming the effects of a nationwide mortgage crisis.”
The ad, sponsored by the Ad Council and Neighbor Works, highlights the effects of foreclosure on entire families and encourages homeowners to take action when facing mortgage issues. The hotline featured in the ad provides free help and guidance to callers 24 hours a day, seven days a week.
In November 2007, the number of foreclosures occurring nationwide increased by almost 68% compared to the same month in 2006. In Pennsylvania, one in every 2,104 households filed for foreclosure in November.
Senator Casey is an original cosponsor of the Home Ownership Preservation and Protection Act of 2007, which would crack down on the abusive lending practices that created the subprime crisis. He also helped secure $180 million for foreclosure counseling in the recently passed omnibus spending bill and in December wrote a letter to Secretary Paulson urging him to ensure that the Administration’s subprime assistance include as many borrowers as possible, ensure long-term affordability and waive all prepayment penalties for borrowers.
Full text of the letter is below.
Dear ,
I am writing to urge you to air the Ad Council/NeighborWorks public service advertisements that direct homeowners facing mortgage default and foreclosure to the toll-free hotline number 888-995-HOPE. The ongoing subprime mortgage crisis threatens many Pennsylvania communities and these ads are a valuable tool in preventing foreclosure and mitigating its wide-reaching effects.
In November 2007, the number of foreclosures occurring nationwide increased by almost 68% compared to the same month in 2006. In our home state of Pennsylvania, one in every 2,104 households filed for foreclosure in November. Many of my constituents that own homes are struggling to find information and assistance. Studies show that roughly 60% of delinquent borrowers are not aware of services that their lenders offer to a person who has fallen behind in their mortgage payments. My office is in contact with homeowners daily to direct them to available resources as they confront rapidly rising mortgage payments. Airing the Ad Council/NeighborWorks Foreclosure Prevention ads would increase awareness among Pennsylvania residents who do not know where to turn for help during this crisis.
The highly evocative ads highlight the effects of foreclosure on entire families, and how “nothing is worse than doing nothing” when facing mortgage issues. The advertisements feature the Homeownership Preservation Foundation’s foreclosure crisis hotline that provides free help and guidance 24 hours a day, seven days a week. Callers in need of more comprehensive services are referred to local Department of Housing and Urban Development-approved housing counseling agencies.
The impact of foreclosure reaches far beyond individual homeowners and affects entire communities. Foreclosure depresses property values and contributes to crime and other neighborhood decay. At little or no cost to your station, airing these ads as soon as possible would raise the possibility of preventing foreclosures with timely intervention and would assist Pennsylvania communities in overcoming the effects of a nationwide mortgage crisis.
Thank you for your consideration.
Sincerely,
Robert P. Casey Jr.
United States Senator
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