To: POLITICAL EDITORS

Contact: Dan Egan of the Pennsylvania Department of Banking, +1-717-783-4721

HARRISBURG, Pa., Oct. 15/PRNewswire-USNewswire/ -- Southwestern Pennsylvania homeowners caught in the mortgage foreclosure crisis can get free help on Oct. 17 and 18, Secretary of Banking Steve Kaplan said today.

The "Work It Out Foreclosure Prevention Event" is an opportunity for struggling borrowers to meet one-on-one with loan servicers and local housing counselors to discuss options to avoid foreclosures. It will be held at the Mall at Robinson in Pittsburgh from 10 a.m. to 9 p.m. on Oct. 17 and from 10 a.m. to 5 p.m. on Oct. 18.

"The first and most important thing to do if you're behind on your mortgage is seek help right away by talking to your lender or a qualified housing counselor," Kaplan said. "They can help you assess your situation and determine what choices are available. In many cases, the mortgage company wants to avoid foreclosure as much as the homeowner. There are more programs than ever available to help families get back on their feet and stay in their homes."

The event is sponsored by the Department of Banking, Pennsylvania Housing Finance Agency and the Pittsburgh Community Reinvestment Group.

PHFA offers several foreclosure prevention programs, including the Homeowners' Emergency Mortgage Assistance Program (HEMAP), the REfinance to an Affordable Loan (REAL) and the Homeowners' Equity Recovery Opportunity (HERO).

Mortgage companies can often work with borrowers to make loans more affordable through loan modification or refinancing. Families experiencing short-term financial difficulties may benefit from forbearance and repayment plans.

Pennsylvania is also taking steps to end the lending practices that created the current foreclosure crisis. In July, Governor Edward G. Rendell signed legislation to require loan salespeople to be licensed by the Department of Banking and allow the department to notify the public sooner about enforcement activities against mortgage companies. The new laws also restrict prepayment penalties, increase fines for misconduct by real estate appraisers and require mortgage companies to notify the state when they intend to foreclose.

The Department of Banking is also pursuing a regulation to require mortgage lenders and brokers to evaluate a borrower's ability to repay the loan and to provide clearer disclosures of key loan terms.

Homeowners can learn more about the Work-It-Out Foreclosure Prevention Event by contacting the Pittsburgh Community Reinvestment Group at 412-391-6732 or visiting www.pcrg.org.

CONTACT: Dan Egan

(717) 783-4721

SOURCE Pennsylvania Department of Banking

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