From the Trenton Times:
Opening up about mortgage worries
The South Clinton Avenue resident faced losing her home after falling behind on her mortgage payments.
Last week, Marcia, with the help of the Neighborhood Assistance Corp. of America (NACA), a nonprofit, community advocacy and homeownership organization, had her monthly mortgage payment and worries abated.
“It was such a weight off me. I actually slept that whole weekend. I’m still sleeping good,” she said.
Marcia, who did not want her last name published, shared her story yesterday, during the U.S. Conference of Mayors (USCM) winter meeting in Washington, D.C. The foreclosure crisis was one of the issues on the agenda. Trenton Mayor Douglas H. Palmer is the current president of the USCM.
It was not a subprime mortgage that made Marcia, 58, fall behind, but a 30-year, fixed rate mortgage exacerbated by a tragedy in her family. She encouraged others in her shoes to put fear and embarrassment aside, and seek help.
“I realized this would be 15 years of my life down the drain if I lost my home,” said Marcia.
“That’s when you need someone who knows what they are doing to help you out,” she added.
…
In Trenton, Palmer has assembled a coalition of mortgage-indus try leaders, state agencies, faith- based organizations and nonprofit groups to assist homeowners who are in or are facing foreclosure of their homes.In 2007, more than 600 properties in Trenton were in pre-foreclo sure or in foreclosure, according to New Jersey Housing Mortgage Finance Agency figures. This is compared to 421 in 2006 and 299 in 2005.
…
NACA has its sole New Jersey office in Newark, but Marks said they plan to open one in Trenton. He said he is working with the mayor on a location.Marks said they have been flooded with inquiries from people looking for help.
“People are not looking for counseling. People are looking for solutions,” he said.
…
Marcia called the mayor’s office, where she was referred to NACA.NACA counselors worked with her, spoke with the lender and ar ranged for the restructuring of her loan.
Marcia said they lowered her mortgage by $10,000 and knocked down her interest rate from 9.8 percent to 5.5 percent.
solution:
sell and downsize. rent?
This makes sense to me. It rewards those who do not walk away..those who admit they were part of their current problem. It’s like “consumer credit counceling/restructuring” for the homeowner.
Many in Calif. ended up on the foreclosure rolls because of seconds and HELOCs. An agency working with them could possibly find an answer on an individualized basis. It sounds like she was willing to “pay the piper” but at a reasonable interest rate.
These folks must feel overwhelmed by all of the new programs..by the sheer magnitude of the problem they face. I think it’s great that they are trying to solve that problem in a reasonable manner instead of just giving up or walking away.
Cindy, I agree.
And as far as downsizing, there’s really no where to “downsize” from South Clinton Avenue in Trenton.
(4) Grim
So it appears that programs like the one being tried in your article are good for everyone. I am always looking to the next generation and what they are learning from all of this…from us. I want them to see responsible, accountability-based solutions in place. The government should be spending their days working just such solutions. But, in reality, any solution will probably need to be localized.
Wow – Sorry Grim and Ann..Where did your comment (4) go? I had not considered the impact on the entire community – the abandonement issue – Did your post disappear?
Accidentally deleted it while fixing a grammatical error.
I was thinking about urban abandonment too. In a city like the Trenton, the more owner-occupied houses you have, the better. Clearly this woman isn’t living in a McMansion or flipping houses for quick profit! A bit of relief sent her way isn’t a horrible thing.
Agree with Cindy and Ann – sounds like this woman has been paying a 30 year fixed at 9.8% for 15 years and then got hit by some unexpected tradedy.
All she really needed was advice – after 15 years at 9.8 if she has been a regular payer, then getting a refinance would be VERY sensible.
This is the kind of person we should be helping. Not the get-rich-quick crowd, or the kind of people who stretch because they fancy themselves financially savvy.