Communities in the Valley are Fighting Foreclosure
The communities in the valley are fighting foreclosures in an organized manner. The leaders have grouped together over 500 Hispanic immigrant Hispanic families in Pacoima and northeast San Fernando Valley.
Immediately after the debut of Father John Lasseigne as the head of Marcy Immaculate Church in Pacoima a couple came to him with their children asking him to pray as they were just about to surrender the house that was their home to foreclosure. This made Father John sit up to the gravity of the problem that was affecting his flock in the northeastern part of San Fernando Valley. The residents were mostly Hispanic immigrants and belonged to the working class. Over 8,000 houses were either in default or about to be foreclosed upon.
Since the last three months Father John has joined hands with other leaders of the community to form a group of 500 Hispanic families who are all immigrants. As a body they will be seeking bank negotiation. The organization also aims to keep detailed records of the responses from banks regarding modification. This information will be passed on to government officials as part of a move to see that the foreclosure victims get favourable terms. Father John explains, “If we don’t make progress with the banks, we certainly expect to make progress with our elected officials.” His congregation belongs to One-La that is a local affiliate of Industrial Areas Foundation. The latter is known to be left leaning.
This unique effort is the first of its kind in trying to talk with banks as a group. It also shares information with the foreclosure victims. It is hoped that this idea will soon catch on and become a model to be emulated by others. Many however are highly critical of this group action saying that it will have no effect on banks. Each case is individual specific. Tom Kelly of Chase Bank said, “The loans were not made en masse. The issue of mortgages is a home-by-home, mortgage-by-mortgage issue.”
With property value having fallen to unprecedented levels negotiating for modification might not be easy. Many with poor credit records and modest incomes may not be able to run even the modified loans. The rates might be low but the lending standards will be very strict.
Meanwhile policymakers are scrambling over solutions, as one out ten, house owners having a mortgage are a month behind in payments or being foreclosed upon as on 30th September 2008.
