After Battling for a Year Coalition Wins Victory Against Foreclosures in Michigan

November 27th, 2009

A group was formed to put an end to foreclosures, evictions and shutting off of utilities – The Michigan Moratorium NOW! It has recently won an important victory after struggling to make their point for a year. It was joined by local activists and put brakes on the eviction of one Belva Davis. It also compelled Ocwen Loan Servicing to modify her house loan. The strategy included rallies in front of her house, pickets in front of the house of Wachovia/Wells Fargo administrator (owns the mortgage) and huge numbers of telephone calls and e-mails to Ronal Faris the CEO of Ocwen.

The lawyers working for the coalition won an important court victory following up an appeal case in a matter of foreclosure eviction. The Circuit Court of Macomb County held that the lender had failed to modify the loan as per the instructions of HAMP. This was enough ground to nullify the foreclosure and can be used to stop eviction proceedings emanating from this foreclosure process. This case was the first one in the country to state this right.
But in spite of these victories the organizers of the coalition contend that foreclosures and evictions are continuing with more intensity. Foreclosure attorney Jerry Goldberg and one of the leaders of the coalition observed that the government, operating via Fannie Mae and Freddie Mac is the main cause for these evictions arising out of foreclosures.

Speaking to Workers World Goldberg said, “These entities have announced programs to allow renters in foreclosed homes to remain in the homes after foreclosure or receive significant relocation funds. However, in 36th District Court I have seen tenant after tenant being evicted by Fannie Mae illegally, without having been afforded this rental option. I’ve observed lender after lender evicting homeowners without affording them their rights to loan modifications pursuant to the new federal program.”
Reacting to these illegal goings on the coalition conferred with legal students from National Lawyers Guild of University of Michigan. They would be chalking out a fact sheet and distribute it to the masses at the 36th District Court of Detroit. This court is the busiest one in the nation dealing with foreclosures eviction. The sheet will contain facts about how to take up the challenge thrown by foreclosures and eviction and also detail what one should do to battle the shutting off of utilities. With the approach of winter thousands are at risk from cut offs said Goldberg.