Do Student Loans Contribute to Foreclosure Crisis? What We’ve Seen from Homeowners in San Jose and Sunnyvale, CA

Foreclosures caused by student loan debt?USA Today reported yesterday (“Nobel winner: Cut student loan rates” ) on one of the proposals that has been put forth by Senator Elizabeth Warren (Bank on Students Loan Fairness Act)  to deal with what some have termed the next subprime mortgage bubble- student loan debt.

Right now, student loan interest rates on Government-subsidized Stafford loans will increase in July 2013 from 3.4% to 6.8% unless Congress acts.

Senator Warren’s proposal would instead have the interest rate tied to the Federal Reserve’s discount rate, which is currently .75%.   In presenting her proposal, Warren explained that this would mean student borrowers would pay the same interest rates that large banks pay when they borrow money from the Federal Reserve.

Is student loan debt the next subprime bubble?  It could be, especially if the rates are allowed to increase to 6.8%.   Here at ForeclosureHelp, we work with homeowners who are having trouble paying their mortgages in San Jose and Sunnyvale, California.    Based off a few recent cases of homeowners we’ve worked with, we can say that student loan debt is a very real problem for homeowners.

It could be the single person, who is already struggling with their mortgages, perhaps had their student loans in deferment, but can no longer defer the loans and must start paying them.   This extra expense, which could range from anywhere from $200 to $1,000 more a month, has to come from somewhere.

Or, it could be the parents who co-signed on student loans because they wanted their kids to go to college, but are now struggling to pay these loans in addition to other expenses like the mortgage, food, gas, etc.

Student loan debt, unlike credit card debt, can’t be eliminated through bankruptcy except in some limited cases (see the Nolo resource page below).   While there are options like deferment, it seems like a more concrete, lasting change will be necessary.   The status quo- with students trapped  by overwhelming amounts of student debt, has translated to fewer first time homebuyers, a “drag” on the economy, and is also part of the reason that the housing sector continues to limp along.  In fact, Forbes (Student Loan Problems: One Third Of Millennials Regret Going To College) cited a recent study of millenials in which 1/3 said they regret having gone to college and would have been better off working instead.

So, here at ForeclosureHelp, we are very interested to see how Congress addresses the student loan debt crisis because we know it has very real implications for homeowners here in San Jose and Sunnyvale, or for recent graduates would like to be homeowners at some point, but have a large overhand of debt that will prevent that from happening for another 10-15 years.  When the Consumer Financial Protection Bureau asked Americans for their ideas on dealing with the crisis, they heard from almost 30,000 people- demonstrating that this is a very real problem for too many Americans.

A few resources that may be helpful:

Top 10 Student Loan Tips for Recent Graduates

Mapping Your Future: Manage your student loan debt

NOLO.com: “Student Loan Debt in Bankruptcy”

Consumer Financial Protection Bureau: Helping borrowers find ways to stay afloat A path forward to spur affordable repayment options

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Foreclosure Help is a coalition program funded by the city of San Jose through a HUD Community Development Block Grant and the city of Sunnyvale, and we can directly assist homeowners  and tenants in San Jose and Sunnyvale who are facing foreclosure.   However, we are unable to assist homeowners/former homeowners in other cities and states.  If you need housing counseling, we suggest using the interactive map on HUD’s website.

ForeclosureHelp partners include the Housing Trust Silicon Valley (lead agency), the Fair Housing Law Project at the Law Foundation of Silicon Valley, SurePath Financial Solutions, Project Sentinel, Asian Inc, Neighborhood Housing Services of Silicon Valley, and the Santa Clara County Association of Realtors.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose through a HUD Community Development Block Grant and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

fair_housing_logo

FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

It is the policy of ForeclosureHelp not to discriminate against any person because of that person’s race, color, religious creed, sex (gender), sexual orientation, marital status, national origin, ancestry, familial status (households with children under the age of 18), source of income, disability, medical condition or age. Color or “ethnic group identification” means the possession of the racial, cultural or linguistic characteristics common to a racial, cultural or ethnic group, or the country or ethnic group from which a person or his or her forebears originated. As required by law, we agree to take the affirmative steps needed to further fair housing.

ForeclosureHelp will consider any and all requests for reasonable accommodation in the application of its rules, policies, practices, and services, and in the use of its physical structures, in accordance with the requirements of state and federal laws. You can ask ForeclosureHelp to consider any reasonable accommodation you may have. Please consult with the Program Manager (408-293-6000 or via email: help@foreclosurehelpscc.org) to request this accommodation.

Installment Loan Borrowers Being Saddled With Unnecessary Insurance Add-Ons

Ouch! Propublica and Marketplace just published a story about installment loans…One borrower who is profiled in the story thought she was paying 90% APR, but with extra “add-on” fees, her effective interest rate was 182%!!!

SILICON VALLEY’S AFFORDABLE HOUSING WEEK CALENDAR OF ACTIVITIES

Join in the many activities during Silicon Valley Affordable Housing Week!

May 13 – 18, 2013 is Affordable Housing Week in Santa Clara County.
Join supporters of affordable housing for panels, tours, presentations and discussions in Santa Clara County – part of the Bay Area’s Affordable Housing Month.

Click on “contact” links below to email or RSVP.

For the most up-to-date information on times for the events below, please visit the website for the Housing Trust, Silicon Valley.

Activity calendar coordinated by Housing Trust Silicon Valley, the City of San Jose,
Santa Clara County and Silicon Valley Leadership Group.

Pre-Event: Thursday, May 9, 2013
5:30pm to 9pm Cities Association of Santa Clara County hosting General Membership Meeting on “Affordable Housing for our Workforce: Can a Regional Approach Lead to Innovative Opportunities?” sponsored by Microsoft, in collaboration with American Leadership Forum, Charities Housing, Housing Trust Silicon Valley, Joint Venture Silicon Valley, Silicon Valley Leadership Group, Tri-County Apartment Association. Location: Microsoft, 1065 La Avenida, Mountain View, CA 94043. Contact: RSVP by May 3rd to raania.mohsen@citiesassociation.org. Agenda: Reception & Tour of Microsoft Technology Center 5:30 – 6:30; Dinner & Program 6:30 – 9:00.


Monday, May 13, 2013
5pm to 7pm EVENT: FAIR — West Valley Community Services (WVCS) is hosting an Affordable Housing Fair with various vendors, apartment complexes, and City Housing Staff to provide current and future residents housing program opportunities and other resources within the Santa Clara County community. Location: Cupertino Community Hall, 10300 Torre Ave., Cupertino, CA. Contact: Saron Savoy, sarons@wvcommunityservices.org


Tuesday, May 14, 2013
3pm EVENT: DISCUSSION — Community Technology Alliance will present data regarding homeless individuals in permanent housing from the Help Management Information System. We will lead a discussion among attendees about using this information to develop a coordinated assessment system to efficiently direct homeless individuals to the most appropriate housing intervention. Location: 1671 The Alameda, San Jose. Contact: Jen Padgett, jpadgett@ctagroup.org


Wednesday, May 15, 2013
9am to 10am EVENT: TOUR — The Habitat for Humanity Home Tour is an affordable housing tour at our recently completed Humboldt & Vine project in San Jose. Participants can learn about affordable homeownership, the Habitat for Humanity model, and our expanded services to address broader community needs. This home features sustainable and “green” materials and appliances to help keep the home affordable for the family in the future. Location: 260 West Humbolt St., San Jose CA. Contact: Megan Fitts, MFitts@HabitatEBSV.org


11am EVENT– TOUR ROEM Development Corporation, Housing tour of a newly constructed 51-unit 100% affordable family project in the heart of Downtown Mountain View. Project amenities include community room, homework and computer room, courtyard with bbq and tot-lot, bike storage, solar PV, and LEED for Homes certification at Gold level. Showcase newly completed affordable development with green and sustainable features. Location: 135 Franklin Street, Mountain View. Contact: ttran@roemcorp.com


Thursday, May 16, 2013
5pm EVENT: TOUR — South County Housing, Housing Tour. Join us for a housing tour of the first development in southern Santa Clara County dedicated to providing permanent housing for chronically homeless individuals. The Gilroy Sobrato Apartments provide 26 studio units and service space as well as case management. Operations are funded largely through a capitalized subsidy from the MHSA program and HUD McKinney funds. Location: Gilroy Sobrato Apartments, 9389 Monterey Rd., Gilroy, CA. Contact: Andy Lief, andy@scounty.com


6pm EVENT: HOMEBUYER EDUCATION — Neighborhood Housing Services Silicon Valley. NHSSV’s HomeBuyer Opportunities Orientation (HOO) offers future low to moderate income earners an overview of affordable & local Below Market Rate HomeOwnership Programs & available financing for First Time HomeBuyers. HOO attendees will learn the basics on BMR eligibility and how to take the first step in their home purchase process. Location: Wheeler Manor, South County Housing, 651 W. 6th Street (Community Room) ADA Accessible, Gilroy, CA. Contact: Teresa Martinez Gonzales, tmartinez@nhssv.org. 408-579-6565.


7pm to 9pm EVENT: FILM SCREENING — Housing Trust Silicon Valley, “American Winter” film screening. See the award winning documentary currently playing on HBO that follows six American families who have fallen from the middle class into poverty. Question and answer session with Director Joe Gantz and Co-producer Aaron Butler immediately following the screening. Location: Camera 12, 201 S. 2nd St., San Jose, CA 95113. Free event, $10 donation suggested. Reserve your seat at: http://htsvamericanwinter.eventbrite.com Contact: Stephanie Lahat, stephanie@housingtrustsv.org


Saturday, May 18, 2013
8am to 1pm EVENT: TOUR — Silicon Valley Leadership Group Housing Action Coalition, Milpitas Affordable Housing Tour, Key Note Speaker: Hon. Dave Cortese. Tour of four affordable housing communities. City staff and developer representatives will provide through direct conversations insight during the tour regarding the challenge and benefits of building affordable homes. Attendees will consist of community advocates, city staff, elected and appointed officials from throughout Silicon Valley. Location: City of Milpitas. Contact: Sandra Escobar, sescobar@svlg.org. Register: milpitasaffordablehousingtour2013.eventbrite.com Fee: $10, includes breakfast & lunch.


9am to 12pm EVENT: WORKSHOP — Housing Trust Silicon Valley, SurePath Financial Solutions and ACE Hassett Hardware. Post-Purchase Education workshop. Financial and maintenance tips for new homeowners, including live maintenance demonstrations. Location: Willow Glen Community Center. Free event, space is limited. Contact: adria@housingtrustsv.org to reserve your seat.


11am to 1pm EVENT: HOMEBUYER EDUCATION — NHORA of Santa Clara County. Live seminar to explain the important steps to buying a house, the down payment assistance programs available in Santa Clara County, the loan pre-approval process and the best way to go about making offers in this changing market. Location: Mayfair Community Center, 2039 Kammerer Ave., San Jose, CA. Contact: Jorge Zegarra, jorge@homesolutions.me


San Jose: Free Community Financial Expo on Saturday, April 13th at Emmanual Baptist Church

EtradeE*Trade is sponsoring a free Community Financial Expo this Saturday, April 13th, from 10am to 2pm at Emmanual Baptist Church on 467 North White Road, San Jose CA 95127.

The event will include three workshops, focused on financial and credit education, affordable housing, and small business.

The event features community partners including Operation Hope and Neighborhood Housing Services of Silicon Valley (one of the partners of ForeclosureHelp).

For more information, contact: Alfonso N. Pearson, Jr., Community Development Manager, E*TRADE FINANCIAL: 703.236.8813.

Các chiến lược cho việc tìm kiếm xét Tịch thu nhà độc lập: Cập nhật trên $3.6 tỷ USD trong thanh toán bằng tiền mặt và $5.7 tỷ USD vào việc sửa đổi trợ giúp.

New info on Independent Foreclosure Review

(English version: Independent Foreclosure Review: Update on $3.6 Billion in Cash Payments and $5.7 Billion in Modification Assistance”)

Biên tập viên lưu ý:
(Foreclosure Help)Trợ giúp Tịch thu nhà là một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale, và chúng tôi có thể hỗ trợ trực tiếp chủ nhà và người thuê nhà ở San Jose và Sunnyvale những người đang phải đối mặt với nhà bị tịch thu. Tuy nhiên, chúng tôi không thể trợ giúp chủ nhà / chủ nhà trước đây ở các thành phố và các quốc gia khác. Nếu bạn cần tư vấn nhà ở, chúng tôi đề nghị sử dụng bản đồ tương tác trên trang web của HUD và nếu bạn có câu hỏi về thông tin dưới đây, xin vui lòng liên hệ với Rust Consulting (1-888-952-9105).

Một thông cáo báo chí cùng ngày hôm nay do Văn phòng Kiểm soát tiền tệ (Office of the Comptroller Currency) và dự trữ liên bang (Federal Reserve) cung cấp cho chủ nhà thêm một số chi tiết về những thay đổi được thực hiện cho xét Tịch thu nhà độc lập và làm thế nào những thay đổi này có thể ảnh hưởng đến chủ nhà.

Trong tháng 1 năm 2013, các nhà quản lý đã thông báo rằng hầu hết các ngân hàng ban đầu / dịch vụ đã đồng ý để thay thế các chương trình vì những lo ngại về chi phí, đúng thời điểm, và quản lý các ý kiến ​​(Để biết thêm về những mối quan tâm, xem bài trước đây của chúng tôi: 7 lý do để đình chỉ việc Đánh giá Tịch thu nhà độc lập).

13 ngân hàng này là một phần của chương trình thay thế bao gồm:

Aurora, Bank of America, Citibank, Goldman Sachs (Litton Loan Servicing), HSBC, JP Morgan Chase, MetLife Bank, Morgan Stanley (Saxon Mortgage), PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.

Tuy nhiên, ba ngân hàng (GMAC Mortgage, Everbank, và OneWest / IndyMac), không đồng ý thay đổi chương trình của họ, và sẽ tiếp tục sử dụng quá trình Tịch thu nhà duyệt xét độc lập, trong đó có một thời hạn áp dụng ngày 31 tháng mười hai năm 2012. Theo thông cáo báo chí, “Cơ quan quản lý đánh giá cho các servicers được hoàn thành trong quá trình của năm tới.”

Tiếp theo là gì?

Theo các nhà quản lý, Rust Consulting, Inc đã được bổ nhiệm là cơ quan quản lý thanh toán và Tư vấn Rust sẽ bắt đầu liên hệ với chủ nhà vào cuối tháng 3 năm 2013. Chủ nhà cũng có thể liên hệ với Rust Consulting để cập nhật thông tin liên lạc của họ (đó là quan trọng để làm, đặc biệt là nếu ngân hàng / dịch vụ thông tin liên lạc chỉ là một địa chỉ gửi thư hoặc số điện thoại cho một ngôi nhà đã được tịch thu trên). Các số điện thoại cho Rust Consulting là 1-888-952-9105, và các đại diện cũng có thể xác minh đủ điều kiện của một người.

Tôi có hội đủ điều kiện khong?

Tương tự như quá trình Tịch thu nhà duyệt xét độc lập, chương trình thay thế là chỉ cho chủ nhà một phần của một hành động tịch thu nhà (đang chờ xử hoặc hoàn thành) giữa ngày 01 tháng 1 năm 2009, và ngày 31 tháng mười hai năm 2010. Chủ nhà đã không phải mất nhà của họ để đủ điều kiện, nhưng cần phải được “trong bất kỳ giai đoạn nào của quá trình tịch thu nhà” trong khoảng thời gian đó.

Được bao nhiêu tiền?

Số tiền này được chia thành hai loại: các thanh toán bằng tiền mặt và hỗ trợ giảm thiểu mất mát.

Thanh toán bằng tiền mặt: 13 ngân hàng / dịch vụ đã đồng ý cung cấp một tổng số $3.6 tỷ USD cho các chủ nhà. Số lượng cá nhân cho các chủ nhà sẽ phụ thuộc vào mức độ nghiêm trọng của những sai lầm ngân hàng / dịch vụ đã làm , và có thể nằm trong khoảng từ hàng trăm đô la lên đến $125,000 USD. The Washington Post đã tạo ra một bảng hữu ích của hạng mục khách hàng vay: Waterfall danh mục vay (từ bài báo của họ: “Tịch thu nhà nạn nhân nhận được thông báo bồi thường trong hợp đồng $9.3 tỷ USD bắt đầu từ thứ sáu” Waterfall of Borrower Categories (from their article: “Foreclosure victims to get compensation alerts in $9.3B agreement starting Friday”

Trợ Giúp sự giảm thiểu mất mát: Những 13 ngân hàng / dịch vụ sẽ cung cấp $5.7 tỷ USD hỗ trợ các chủ nhà thông qua các nỗ lực giảm thiểu mất mát, các ngân hàng và “ưu tiên cho các hoạt động được thiết kế để để giữ các chủ nhà trong nhà của họ thông qua hành động bảo tồn giá cả phải chăng, bền vững, và có ý nghĩa về nhà.” dịch vụ được đưa ra cho đến ngày 07 Tháng 1 năm 2015 để hoàn tất việc hỗ trợ giảm thiểu mất mát.

Ngân hàng / dịch vụ Thanh toán tiền mặt Hỗ trợ sửa đổi trợ giúp
Aurora Loan Servicing $93 triệu $149 triệu
Bank of America $1.1 triệu $1.7 triệu
Citibank $306 triệu $486 triệu
Goldman (Litton Loan Servicing) $135 triệu $195 triệu
HSBC $96 triệu $153 triệu
JP Morgan Chase $753 triệu $1.2 triệu
MetLife Bank $30 triệu $48 triệu
Morgan Stanley (Saxon Mortgage) $97 triệu $130 triệu
PNC $69 triệu $69 triệu
Sovereign $6 triệu $9 triệu
SunTrust $62 triệu $100 triệu
U.S. Bank $80 triệu $128 triệu
Wells Fargo $765 triệu $1.2 triệu
Tổng cộng $3.6 tỷ $5.7 tỷ

Lưu ý: Các số liệu được làm tròn. Nguồn: Chấp thuận sửa đổi Đặt hàng (Amended Consent Orders) posted được đăng trên OCC và liên bang dự trữ (Federal Reserve) trang web.

Tôi nên làm gì tiếp theo? Rust Consulting có thể sẽ bị choáng ngợp bởi số lượng các cuộc minh điện thoại từ các chủ minh trong vài ngày tới, nhưng nó là đáng dành thời gian để gọi cho họ trong vài tuần tới và xác nhận rằng họ có thông tin liên lạc hiện tại của bạn và xác minh đủ điều kiện của bạn.

Để biết thêm thông tin, hãy truy cập:
Cục Dự trữ Liên bang Thông cáo báo chí: “sửa đổi, bổ sung một số điều của lệnh ưng thuận tưởng nhớ $ 9,3 tỷ Hiệp định Tịch thu nhà “Amendments to Consent Orders Memorialize $9.3 Billion Foreclosure Agreement”

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

Event Focuses on Stabilizing Homeownership after Foreclosures in California

Foreclosure in California: 2010 to 2012

Editor’s note: This is post #2 in a two-part series. (Read Post #1)

By Sean Coffey, Program Manager, Foreclosure Help

The California Housing Consortium recently sponsored the 1st Annual  Homeownership Forum.  The theme for the day was “Stabilizing Homeownership and Communities in the Post-Foreclosure World” and panelists and participants discussed current efforts to repair the housing market, while creating and retaining affordable housing.    To see the agenda and speaker slides, visit the CHC website.

Keep Your Home CA, California’s Role in AG Settlement, Homeowner Bill of Rights

The first panel discussion was moderated by Rick Jacobus, from NCB Capital Impact and included Rick Okikawa from CalHFA, Steve Gallagher from Keep Your Home California, and Frances Gunder, from the Attorney General’s office.  France Gunder discussed about the high-stakes negotiations that ultimately led to California signing on to the Attorney General settlement.  California had walked away from the negotiating table at one point in the negotiations because of concerns the settlement didn’t provide enough relief to California homeowners.

Gunder also discussed the California Homeowner Bill of Rights that includes similar mortgage servicing requirements as the AG settlement.  However, the California Homeowner Bill of Rights applies to ALL banks/servicers who are servicing mortgages in California.  In contrast, the AG settlement only applies to the five largest banks: Ally, Chase, Bank of America, Citi, and Wells Fargo, and expires after three years.

Steve Gallagher gave an update on Keep Your Home California, and in response to a question about programs designed to assist with second mortgages, suggested that participants look at the Local Innovation Fund.

California’s Economy and Real Estate Market

Dr. Selma Hepp, Senior Economist for the California Association of Realtors, presented an overview of the economy and real estate market in California.  While the market is recovering, a few trends could be worrisome for housing advocates, including the number of homes that are still upside down in California (and the amount they are upside down), the increase in all-cash offers beating out first-time homebuyers, and an interesting difference in how buyers and sellers view the current market.  Dr. Hepp noted that homebuyers have far more optimistic perspectives on the potential for a house to increase in value as compared to home sellers.

Pilots to Heal the Market

The third panel was moderated by Kevin Zwick, from the Housing Trust of Santa Clara County.   Rose Cade at Enterprise Community Partners discussed pilots to preserve affordable housing stock in California, including the ROOT program in Oakland, and a pilot with Waypoint Homes.  Rebecca Regan, with the Housing Partnership Network, discussed the Mortgage Resolution Fund and the Community Restoration Corporation, which allows for banks to donate homes to a non-profit (instead of the bank walking away from them).

Beth Haiken from Waypoint Homes explained their model of purchasing homes and setting up two-year leases, with a system that allows renters to accumulate points that can be used for a later purchase of a home.  She also cited research that each 1% drop in homeownership equates to a need for 750,000 more rental units.    Drew Collins, from Wells Fargo Home Mortgage, described online counseling resources, and also said that in his experience, current homeowners are ready and excited about buying homes, but are often losing out when competing against all-cash buyers.

Dr. Carolina Reid, from the University of California, Berkeley, was the third keynote presentation and talked about the impact of the crisis on low-income communities and minority homeowners.  She began by suggesting that contrary to some suggestions, the subprime melt-down wasn’t due to lenders being force to make loans to low-income people or people of color to increase homeownership.  In fact, she suggested that the subprime lending boom undermined homeownership for people of color and low-income people.

Reid explained that  the recent final rule for the Qualified Mortgages was published by the Consumer Financial Protection Bureau in January 2013 and cited estimates that as many as 30 to 40% of low-income people will be unable to qualify for mortgages under this new regulation.

Local Innovation

The final panel of the day was moderated by Sean Spear from the California Debt Limit Allocation Committee and included Denise Bickerstaff, from the County of San Bernardino, Craig Ferguson from the California Rural Home Mortgage Finance Authority, Ed Mayer from the California Affordable Housing Agency, and John Perfitt from Restore Neighborhoods LA.

Denise Bickerstaff discussed efforts to address foreclosures in San Bernardino County, the largest county in California and in the United States, and where an estimated 50% of homes are underwater.  Bickerstaff touched on the controversy surrounding the possibility of using eminent domain to seize mortgages, and explained that the risks involved with using this as a tool to address the crisis had been a large obstacle.  She suggested that people may be interested in the RFQ announced by the Joint Powers Authority Home Ownership Protection Program Joint Powers Authority , and also suggested visiting http://www.saveyourhomesbcounty.org/

John Perfitt, the Executive Director of Restore Neighborhoods Los Angles, discussed implementing the NSP program in partnership with the city of Los Angeles to purchase and rehab homes and strengthen neighborhoods that had been affected by the foreclosure crisis.

Craig Feguson discussed the Residential Energy Retrofit Program, which allows eligible homeowners in 44 counties of California to apply for a 6.5% fixed interest rate loan, up to $50,000, to make energy efficiency home improvements.

Ed Mayer discussed a partnership between CalAHA and Cascadia that will allow people in several counties to lease single family homes with the option to purchase the home in the future.

The agenda as well as PDF’s of the presentations are available here: www.calhsng.org

Congratulations to the organizers, presenters, and sponsors for putting this event together.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

Event Focuses on Stabilizing Homeownership after Foreclosures in California

First Time Homebuyers Losing to All Cash Investors

Street Corner in San Jose, California

Editor’s note: This is post #1 in a two-part series.  You can read part 2 here.

By Sean Coffey, Program Manager, Foreclosure Help

The California Housing Consortium recently sponsored the 1st Annual  Homeownership Forum.  The theme for the day was “Stabilizing Homeownership and Communities in the Post-Foreclosure World” and panelists and participants discussed current efforts to repair the housing market, while creating and retaining affordable housing.    To see the agenda and speaker slides, visit the CHC website.

Two themes emerged during the day:

1) While many potential homebuyers are ready (including first time homebuyers), engaged and excited to buy a home in the Bay Area, many of them are unsuccessful when they make offers right now because they are competing with all-cash offers from investors.

2) There is not one “single bullet” policy or program that will fix the housing market, but it will likely be a combination of programs, policies, and financing mechanisms, both from the public and private sector that will help the housing market to recover.

Repairing credit after an improper foreclosure?

One of the most interesting comments of the day came during a conversation with a fellow audience member when she asked me if there are any plans to assist homeowners with fixes to their credit reports if they were the victim of an improper foreclosure. I am not aware of this being included in the Independent Foreclosure Review, but it seems logical that if a homeowner’s credit was damaged because of an improper foreclosure, (and the bank admitted it was an improper foreclosure by paying compensation under the Independent Foreclosure Review), then the bank/servicer could also notify the three credit reporting agencies that the foreclosure proceedings were improper.

Upon receiving this information, the credit agencies could code the person’s credit report appropriately, and there should be a subsequent “bounce” in the person’s credit score, and a lower cost of credit for that homeowner.  Given the increased scrutiny that Experian, Equifax, and Transunion now face by the Consumer Financial Protection Bureau, this is an idea worthy of consideration, and could potentially restore some faith in the credit bureaus, who have faced criticism recently over errors in a substantial number of consumer’s credit reports.  (See our previous post on this topic: “New Report: 1 in 10 Consumers Have Incorrect Credit Score“)

FHA’s Role in “Healing” the Market

Carol Galante, recently confirmed as the Assistant Secretary for Housing/Federal Housing Commission, opened the day and cited the importance of FHA loans in helping to repair the market, with nearly four million FHA loans completed since the beginning of the crisis, with 80% of these loans made to first time homebuyers.

Galante is the FHA Commissioner, and she discussed efforts FHA is making or considering making to repair the market, including selling pools of loans where all of the loans are at least six months delinquent.  In this model, investors could purchase a pool of delinquent loans, and then work with homeowners to modify the mortgage to an affordable level.

She also cited FHA’s 203K loan, which allows homeowners to pay for repairs to a home using the mortgage that they are using to buy the home to also finance the repairs.  However, she noted that the current limit of seven homes could prevent non-profits from using the program, and suggested that lifting this limit could allow non-profits to use this loan more broadly.

Galante also touched on a few other hot topics, including whether pre-purchase counseling should be mandatory, and how to pay for it, and do it in such a way that it’s meaningful for potential homeowners.  Audience questions touched on a recent settlement where a bank disclosed that it had inappropriately given homeowners FHA loans (when they didn’t need them), as well as the difficulty that first-time homebuyers are having in competing against all-cash investors.

This is post #1 in a two-part series.  You can read part 2 here.

Related articles:

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.