Community Leaders Seeking Foreclosure Prevention Measures
July 21st, 2009
About 700 worried citizens and their leaders met on Sunday to put pressure on the City Council of Los Angeles to use federal stimulus dollars for foreclosure prevention measures, provide job training and education. The venue of the meeting was Boulevard Temple on Beverly Hills and the organizers were One LA-IAF – a non partisan body. Members came from 85 churches, synagogues, unions, schools and various non-profit entities. The target was to goad the leaders of the city to support the measures that would assist the middle class to survive and prosper.
The meeting was attended by council members – Bernard Parks, Jose Huizar and Jan Perry. Also present were Superintendent of Los Angeles Unified School District Ramon Cortines and Wendy Greuel the City Controller. They patiently lent a hearing to the citizens worried about the latest foreclosure attack from ARMs.
One of those with a grievance was 67 years old Marie Clarke of South Los Angeles. A retiree she is now seeing her monthly mortgage payment increase by $, 1000 per month while the value of her property has gone down by $200,000. She was under the wrong impression that the rate of her 30 year mortgage was fixed. But the bank denied this when she called upon her lender and dismissed her peremptorily. Today she is calling on all the banks to alter their attitude and sincerely listen to what their customers have to say.
The leaders are hoping to expand the fund of $1 million for foreclosure prevention and put pressure on banks to lower their rates on home loans so that it is in tune with the market value of the properties in question.
A program of the same type was given the green signal by Los Angeles City Council last May to help the residents of San Fernando Valley – mainly those in the northeastern region.
Carlotta Garcia of One LA said, “Many banks have not been reducing principal, but because we have money from local funds, several banks have accepted to modify home loans.” The program envisages the creation of “silent second mortgages” up to a maximum of $75,000. Homeowners will benefit of it from Community Redevelopment Agency.
Garcia said that in south Los Angeles the foreclosures have a character of their own – it is not just the borrowers but many tenants who have been affected by this crisis for no fault of theirs. Perry commented, “We know people are hurting out there, and we have to do more with our stimulus money to help those in need.”
- Spurt in Sales of Foreclosed Properties
- Foreclosure Climate Changes Spirit of Competition to Cooperation Among Contractors
- Bouncing Cheques Issued by Title Companies Lead to Foreclosures
- Increase in Foreclosures Prompting Class Action Legal Suits
- Avoiding Foreclosures by Walking Away From Loans are not Without Problems
- Foreclosure Assistance Being Taken on Tour by Housing Advocate
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