Non-profit Organizations Spreading Across America to Help Foreclosure Victims

August 10th, 2009

With the increase in the housing crisis, non-profit organizations have been spreading across America trying to help the foreclosure victims.

One of the families in trouble is that of Philip and Gloria Spigner in Columbia. They suddenly saw their monthly mortgage payments spike from $800 to $1,300. Another couple, Carol and Butch Dycus were served foreclosure notices although they had not defaulted in mortgage payments. Tony Jumper on the other hand was lucky that his mortgage had not changed but he was unlucky enough to lose his job.

These people were among the many hundreds that gathered last Friday 13th march, to seek counseling from a non-profit body that is trying to find avenues to help those borrowers who are at risk and trying to reduce their mortgage payments.

Neighborhood Assistance Corporation has been touring the country. Its tour is known as ‘Save the Dream’. It offered mortgage rescheduling assistance in Washington D.C in 2008 and in January this year in Stamford Connecticut. It is also targeting visits to other areas that have been badly mauled by foreclosures – Florida and California.

The NACA counselors make use of analyzing pay cheques and tax filings when they interview clients and try to budget their expenses with their income. In the next step they negotiate with the lenders on behalf of those who have inked agreements with the group.

The response had been tremendous with 10,000 people having signed for the free counseling event even before it opened. It is estimated that 20,000 will participate in the conference that will run for three days, said one of its organizers, Carmon Orta. She said, “Everyone is in an unaffordable mortgage right now whether it be that they were in a predatory loan and got duped into a bad interest rate or because of the economy they have a job loss. We will go to the lender’s CEO’s office. We will go and do what we have to do to sit with them until they sign a contract with us and agree to have real solutions and modifications for people.”

Jim Clyburn (House Majority Whip – Democrat) and supporters of his group said similar measures will help families get back on their feet and infuse hope in them. He commented, “And I think it will do a whole lot to help get this country back where it ought to be.”

Some lenders have started to think positively and trying to work with these groups to avert foreclosures.