foreclosure homes

Today, the National Council of La Raza (NCLR) launched a five-part weekly blog series titled Too Little to Save. Each installment will spotlight a family and describe their struggles with foreclosure. A recent study authored by NCLR and the Center for Community Capital at the University of North Carolina found that family bonds were profoundly distressed by this ordeal.

We are deeply concerned about what will come of this foreclosure generation and what it means for the nation if families continue to lose their homes. The following is the story of the Nogales family.

On the west coast of Florida, the Nogales family has been split up by foreclosure. Ms. Nogales, a single mother who has a 17-year-old daughter and two sons, ages 18 and 25, experienced a loss in income that triggered a series of events ending in foreclosure.

First, it was a loss of income. Second, my mortgage loan actually increased because of taxes, which, of course, put me behind because with my less income and my mortgage up, I was not able to pay it, the adjustable loan. I had homeowner's dues, too, and they all went up.



Foreclosure triggered contention between the family members. Faced with eviction, the mother moved into her sister's home. However, the home was too small to accommodate her two older boys, so they were forced to move out on their own with little warning and before they were financially prepared to do so. This separation created conflict, anxiety, and feelings of guilt. Ms. Nogales describes the tension:

Well, for one thing, I think my boys are jealous because I'm providing for [my daughter] and not helping them out. So of course they're jealous...My daughter and I have moved in with my sister, which I never thought I would ever have to do. Never thought I would be living with my sister at this age. One of the boys comes and stays periodically with me and with a friend and the other one stays with a friend.



She goes on to express concerns about her son's anger:

My 18-year-old has been in trouble with fighting...But not with the other son, with other people...He has a lot of anger.

The foreclosure has hindered her daughter's education and emotional state. After the family lost their car due to financial difficulties, her daughter had no other means to get to school. She was forced to transfer to an online program to complete high school. Removed from her friends and social network, the daughter became withdrawn and depressed.

Ms. Nogales' extended family used to help each other during hard times. Unfortunately, the entire family is now struggling financially.

My parents are still here and their house actually is in the process of probably going into foreclosure. So it could end up where about seven of us are all living in one place and, of course, we won't even know where that is yet, depending on the house with my sister. Ours is like a domino effect. It's like one went into foreclosure, then another one, because we're all trying to help each other financially. But we're having to not pay this to help pay that to keep this house and it just gets―it worked for a little while. It's not working anymore.



Ms. Nogales is concerned about the extinction of the American Dream. She worries about how this economic crisis promises a very difficult start for the next generation entering the workforce and the housing market.

I think my kids are just finally looking at it going, "Oh, my gosh. We thought we were going to have [the American Dream]." I mean they're seeing [the dream vanish], too. They're seeing me struggle.



I don't think [the American Dream] is available and likely to happen for a lot of people. I feel bad for these people that come out of college. My kids are going to be going into college, hopefully. I don't know what kind of future they're going to have with being able to come out of school. I feel scared for them and sorry for them for what the next ten years are going to be like for our youth.



Unfortunately, many more families will suffer this way before the foreclosure crisis subsides. In fact, 1.3 million Latino families are expected to lose their home between 2009 and 2012. The Nogales family's story is just one among millions. By sharing their story, we hope to give a face to a crisis often glossed over by complicated economic theories and staggering statistics. To get beyond the numbers, NCLR is recording the human realities of foreclosure to give struggling families a voice before decision-makers who have the power to curb the rate of home loss. If you or someone you know has been affected by the risk of losing his or her home, I encourage you to share your story.

Foreclosure Mediation Programs Succeed Across The Country — Will Pawlenty Give Minnesota’s A Chance?

Today, across the country, mortgage mediation programs aimed at helping struggling homeowners stay in their homes are getting underway. Programs are launching in Maryland, as well as Florida’s 6th and 10th judicial circuits — encompassing Pasco, Pinellas, Hardee, Highlands, and Polk counties — while Cook County, Illinois is beginning a huge round of outreach for its burgeoning program.

In all, “the number of jurisdictions with foreclosure mediation programs is nearly double the number a year ago, with jurisdictions in 21 states now offering foreclosure mediation or negotiation programs.” Not on this list, however, is Minnesota, where Gov. Tim Pawlenty (R) saw fit to veto a program last year.

The Minnesota state senate recently passed the bill again, sending it to the state House, so Pawlenty could very well get a second shot soon. And there’s simply no reason for him to oppose the program, as mediation — during which a bank meets face-to-face with a borrower, often in the presence of a judge and housing advocates, to try and forge a mortgage modification or other arrangement that prevents a foreclosure — is one of the most successful methods of helping struggling borrowers stay in their homes.

Connecticut’s mediation program, for instance, has kept 60 percent of its borrowers out of foreclosure. Philadelphia’s success rate is also 60 percent, while Nevada claims an 85 percent success rate:

About 80 percent of homeowners at risk of losing their homes don’t engage in any efforts to negotiate with their lender. And those who do so on their own often run into a bureaucratic mess, including hours on hold, lost records, and customer service representatives who know nothing about the borrower’s situation. Mediation helps to ensure that situations like that don’t happen.

“These new protections empower our fellow Marylanders, putting them on a more equal footing with mortgage companies that too often can’t be bothered to pick up the phone before beginning a foreclosure proceeding against a Maryland family,” said Governor Martin O’Malley (D). And lest Pawlenty think this is a purely partisan issue, it has also won the praise of Gov. Jodi Rell (R-CT). “Clearly, mediation is an effective tool homeowners can use to ward off foreclosure,” she said. “This program is a beacon of hope for hard-pressed homeowners and a real alternative for lenders.”

In mediation, there’s no requirement for a lender to accommodate a borrower, but it’s often the case that preventing a foreclosure is in the best financial interest of both the borrower and the lender. As CAP’s Andrew Jakabovics and Alon Cohen wrote, “the simple act of participating in mediation consistently yields solutions short of foreclosure that are acceptable to both sides.” Hopefully, should the Minnesota legislature do the right thing and create a program, Pawlenty will allow it to stand.

Mike Fuljenz Mike Fuljenz