The impact of foreclosures on our community normitas d1 updated
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The impact of foreclosures on our community normitas d1 updated

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  • Current wave of foreclosures due to high rates of unemployment.Banks have little incentive to work with homeownersLegislation/regulation too slow or inadequate – Fed agencies not moving funds, programs to curb foreclosure are voluntary, some programs allow postponement of mortgage payments for 3 months, avg length of unemployment = 9 months.
  • Get the work out about assistance programsForeclosure is a complex process and there are nationally-renowned for their foreclosure assistance programs. No one should ever pay for foreclosure assistance so look for programs that are HUD-certified. Beware of fraud. Lots of bad actors out there. Two great organizations have programs – Community Housing Works and the Housing Opportunities Collaborative.

The impact of foreclosures on our community normitas d1 updated The impact of foreclosures on our community normitas d1 updated Presentation Transcript

  • The Impact of Foreclosureson Our Communities Norma Rodriguez Organizer Center on Policy Initiatives
  • Foreclosures in California One in five U.S. foreclosures is in California. More than 1/3 of California homeowners owe more on their mortgage than their homes are worth.
  • Causes of the Foreclosure Crisis 1999 deregulation broke down the walls between banks, insurance and securities companies This led to explosion of subprime market and Predatory lending practices. Investors bundled high-risks loans and sold them to investors as safe investments THIS WAS PREVENTABLE!
  • The Crisis Continues Current wave of foreclosures due to high rates of unemployment. Banks have little real incentive to work with homeowners Legislation/regulation too slow or inadequate.
  • Impact of Foreclosures Lowers the home values of homes within 1/8 mile, decreasing home equity. Undermines financial stability of families and their communities Erodes local tax bases and revenues. Costs local governments money.
  • Impact of Foreclosures: City of San Diego 2008-2012 Number of Foreclosures City of San Diego 56,689 District 4 15,558 District 8 14,012 District 3 13,809 District 7 8,901 District 2 8,840 District 5 8,271 District 6 7,373 District 1 5,665Foreclosure data from RealtyTrac
  • Impact of Foreclosures: CA & District 12008-2012 California District 1Total Foreclosures 1,874,219 5,665Home Value Lost $632 billion $1.9 billionProperty Taxes Lost $3.9 billion $11.7 millionCost to Local $17.4 billion $42 millionGovernmentsTotal Costs $656.3 billion $1.98 billionForeclosure data from RealtyTrac
  • What should be done? State and Federal Level Urge Attorney General to fight for a strong settlement against the banks with real homeowner relief Implement principal reduction program for underwater homeowners Banks should pay their fair share of taxes (in 2010 Bank of America paid no taxes)
  • What should be done? Local Level Maintain current jobs and create new ones. Counties should implement mandatory mediation to increase communication 75 cities have passed an ordinance fining banks that foreclose and fail to maintain properties
  • What should be done? Local Level – San DiegoThe Property Value Protection Ordinance: Banks must register with the city when filing a foreclosure notice Fines banks $1000 a day if fail to maintain properties up to code Keeps neighborhoods clean, property values up and bring in needed revenue to the city
  • Next Steps Support is available Foreclosure AssistanceHousing Opportunities Collaborative (HOC) 619-283-2200 www.housingcollaborative.org/
  • Next Steps Community Meeting:  June 28th, 6:30 pm  2001 Newton Avenue Public Hearing:  City of San Diego Land Use & Housing Committee July 11th, 2pm Stay informed  Sign up to support the ordinance and keep updated!