Facing foreclosure? What do you do?

BY ED FELIEN

President Obama’s $75 billion mortgage relief plan has significantly changed the foreclosure landscape.  If the bank is returning your calls and is willing to renegotiate the terms of your mortgage, then you’re probably going to save your home.

But, if you’re behind in your mortgage payments because you lost your job or because the bank decided to increase your interest rate and jack up your
payments, or for some other reason, and they won’t talk to you except to tell you to move, and you don’t want to lose your home, then, what can you
do?

First, STAY IN YOUR HOME!
That’s what Congresswoman Marcy Kaptur of Toledo recommends.  No matter what the bank says, the only person who can evict you is the Hennepin County Sheriff with a gun on his hip.  At this point you need help.  You need someone on your side.

Second, CALL 311.
That number is the City of Minneapolis information number.  Tell them your problem and see what help is available.  You need a loan counselor to figure out your mortgage and go to the bank for you and try to renegotiate that mortgage.  There are plenty of nonprofit organizations active in South Minneapolis who want to help and can provide counseling.  Try Neighborhood Housing Services at 521-3581; Powderhorn Residents Group at 721-7556; Project for Pride in Living at 721-4696; or Habitat for Humanity at 331-4439.

Third, GO TO COURT!
The bank may send you notices, but the only notice that means anything is the notice to appear in court for a hearing on your foreclosure.  This is a hearing where the judge may determine that the mortgage is in default and order the house to be sold for the balance due.  Ask the judge to see the original note.  The mortgage company must produce the original note or else they have no legal basis on which to proceed with foreclosure.  Quite often, almost as soon as you got your mortgage it was sold to a mortgage broker who bundled them with other mortgages and sold them to speculators.  These bundles got bigger and bigger and mixed in with bad loans and bad risks and were sold as credit default swaps to brokers on Wall Street.  There’s a chance that nobody can find the original mortgage note.  It’s not a great chance.  They’ll probably eventually find it, but the important thing is this gives you more time to renegotiate your mortgage.  And, now, all of a sudden, the bank is serious about talking with you.

Fourth, RESIST!
If all else fails, and you still want to fight it, then you’ve got friends
that are just as mad as you are.  Minnesota ACORN has been waging a nationwide fight against foreclosures.  Their help line is 651-642-9639. Or, call the Poor Peoples Economic Human Rights Campaign (PPEHR) at 821-2364.  They have been occupying houses that have been foreclosed, and if they are vacant they’ve been housing homeless people in them.  If the judge has ordered your house sold for foreclosure at a Sheriff’s Sale, you could show up at the Sheriff’s Sale and try to stop them.  ACORN and PPEHR would probably stand by your side.

The Economic Crisis Action Group will be trying to interrupt a Sheriff’s Sale of a foreclosed home on March 11. They invite you to join them. They will gather at 9:45 a.m. in Room 30 of Minneapolis City Hall, 350 S. 5th St. Contacts: A. Nurack, ACORN, 651-642-9639, mnacorn@acorn.org; Cheri Hon-kala, PPEHRC, 267-439-8419, info@economichumanrights.org; Karen Redleaf, ECAG, 651-283-3495, ecag@riseup.net.

When something like a foreclosure happens, it can be devastating. You feel awful. You’ve let your family down. You can’t help but blame yourself. But that’s wrong. It’s not your fault that greedy mortgage brokers sold you a mortgage that has impossible payments. It’s not your fault the economy crashed and you lost your job. You need to talk to people who understand the crisis and understand your problems. There are people out there who want to help. Don’t be afraid to give them a call.

If you’re still angry, there’s a national “March on Wall Street—Bail Out the PEOPLE Not the Banks!” happening April 3 and 4 on the anniversary of Martin Luther King’s assassination. There will undoubtedly be local organizers, but the national Bail Out The People Movement can be reached at 212-633-6646, Website: www.BailOut-People.org, E-mail: bailoutpeople-@safewebmail.com.