River Cities Business Journal: Cover Story

KINGMAN - Like the rest of the nation, Kingman has seen its share of foreclosures in the housing market. Now, however, those facing foreclosure have someone new to turn to for advice.

In June, Gov. Janet Napolitano announced her latest effort to curtail the wave of foreclosures that has wracked Arizona in the last few years - a local toll-free help line, (877) 448-1211.

Made available through a $1.3 million grant secured in March, the 24-hour foreclosure help line is being touted by the governor's office as “a vital link between families facing a housing crisis and access to free foreclosure appointments.”

Charlene Crowell, a communications administrator for the Arizona Department of Housing, said this hot line differs from Hope Now, a separate mortgage assistance hot line started by the Bush administration in 2004.

“The difference between Hope Now and the foreclosure help line here in Arizona is that the callers will be directed to the closest counseling agency where they live on that list,” Crowell said.

Twelve foreclosure counseling organizations have agreed to be a part of the program.

Crowell said 60 professional foreclosure counselors already have been trained for the hotline program through the nonprofit NeighborWorks Center for Foreclosure Solutions. The training cost $500,000 and was paid for by ADOH Housing Trust Fund revenues.

The Housing Trust Fund has also been used to expand the state's Eviction and Foreclosure Prevention funding from $2.75 million to $4.2 million this year.

Crowell said an estimated 4,000 Arizona families would benefit from the increase.

According to ADOH, Arizona had the third highest rate of foreclosure among U.S. states for the first quarter of 2008. Approximately one in every 18 homeowners is projected to experience foreclosure on their home as a result of a high-cost loan, costing the combined state and local tax base a projected $8.7 billion.

The numbers in Kingman's local housing market aren't encouraging either.

On June 1, Kingman Realtor Todd Tarson found 596 single-family residences listed for sale within the boundaries of the city of Kingman, the Butler area, the Hualapai Mountain area and the Valle Vista subdivisions.

Of these, 56 houses - nearly a tenth - were listed as foreclosures.

When Tarson pulled the preliminary sales data from January through May of this year, that figure turned even grimmer. Foreclosures have thus far accounted for nearly a third of single-family home sales - 59 of the 195 homes sold - and they tend to go for significantly less than non-bank-owned property.

“The kicker is, foreclosures are having a big impact on our market, but they're selling faster too,” Tarson