Housing Counselors Share in the Strain of Foreclosures

Nonprofit Workers' Caseloads Are Rising, and So Is Their Exposure to Homeowners' Anguish

DENVER -- It was one of Zach Urban's most trying days as a housing counselor: A woman arrived on his doorstep so distraught over the thought of losing her townhome that he feared she might harm herself.

Sherie Zamora sought Urban's help when she temporarily lost her job and couldn't get relief from her mortgage company. She said Urban was calm and reassuring as they developed a plan. But as she left his office, he gave her some suicide-prevention hot-line numbers.

"I could laugh about this now but, at the time, it was not a laughing matter," said Zamora, 43, an insurance agent who saved her Denver townhouse nearly four years ago. "I was at the end of my rope, and I felt hopeless."

Urban is one of thousands of counselors at nonprofit housing agencies who preside over a court of last resort for financially troubled homeowners. It's become a more stressful job as the nation's housing slump sends caseloads skyrocketing. The demand -- and the heart-wrenching stories -- can seem never-ending.

"There's the bad days where you've had five people come into your office that have all just broken down crying and, many times, looked to you to resolve the issues that took years and months to fall into place, and that's something that won't be solved overnight," said Urban, counseling program manager at Brothers Redevelopment in Denver.

"But then you turn the corner one day, working with somebody and that house is saved or that family is given a positive resolution, and those are the good days."

Homeowners of all ages and income levels have fallen into trouble over the one-two punch of a softening housing market and problems with subprime mortgages, which are made to homeowners with weak credit. Sometimes it's financial mismanagement. Other times it's a lost job, medical issues or another life-changing event.

The news isn't getting much better. Foreclosure filings nearly doubled nationwide in September, and new-home sales are projected to fall 23 percent this year.

In Colorado, one of the hardest-hit states, foreclosures rose 31 percent in 2006, to 28,220. They are expected to climb an additional 30 percent in 2007, Urban said.

Counselors help homeowners examine their finances; what it will take to catch up with payments, if that's feasible; and how the foreclosure process works.

They also work with lenders, often spending hours trying to reach the right representative. Urban joked that he has passed so much time on hold that he can play "name that tune" with the canned music.

Officials worry that counselors may quit over burnout or find better jobs just as demand is soaring, said Meg Burns, director of the Office of Single Family Housing Program Development for the Department of Housing and Urban Development.