The Community Reinvestment Act is helping Lafayette-based Homestead Consulting. The law is designed to encourage commercial banks to help meet the needs of borrowers in all segments of their communities.
The Wells Fargo Foundation is donating $2,000 to Homestead. Development Director Chris June says it will help pay for the housing education and foreclosure prevention programs it runs.
“From the foreclosure perspective, you have a vacant house sitting there. There could be the need for the city to step in and maintain the property; increased crime; or there’s one less family paying taxes,” he says. “So, we want to make sure families stay in those homes.”
He says the number of foreclosures in and around Tippecanoe County has decreased since the recession. However, June thinks many families are still in danger of losing their home, if they have a medical emergency or because of job loss.
He thinks the funding from Wells Fargo Foundation ensures accurate and reliable information for homeowners.
“With their support, we’re able to continue to offer these programs for free. We’re not one of this millions of companies that pop up with free consultation and then they burn you a bunch on the back-end.”
Last year, Homestead Consulting helped avoid nearly $16 million in foreclosures and assisted with home purchases totaling more than $2 million. The organization serves Tippecanoe and nine surrounding counties.
