| Saved from Jaws of Lenders |
|
Source: Ny Daily News
Many other homeowners in the Bronx have not been so lucky, and the loss of their homes has contributed to New York state having the fifth-most subprime foreclosures in the nation in 2006. Legislators hope more banks will take responsibility for the crisis and offer to restructure loans to people like the Robinsons. "Foreclosures are not good for anyone," said state Sen. Jeff Klein (D-Bronx, Westchester). "We are asking lenders to step up and take responsibility to alleviate the situation." The Robinsons' problems began a year ago when Emma Robinson took several months of unpaid sick leave from her job as a subway station attendant because of complications from diabetes and arthritis. Paychecks from two of her daughters, one working for the city Parks Department and one for the state on Wards Island, were not enough to cover the $1,548 monthly mortgage payments, along with taxes − which have more than doubled with the value of their house on 214th St. But despite their best efforts, several missed mortgage payments brought bank foreclosure letters in the mail. Loan sharks in suits drove up in luxury cars, trying to get them to sign their house away or pay astronomical interest rates on forms with microscopic print. The Robinsons bought their home nine years ago for $190,000, and its assessed value has since risen to $500,000. But a ballooning interest rate, late fees, legal fees and missed payments brought their almost paid off mortgage back up to $195,000. "We thought the only choice is for us to go in a shelter because all our family lives here," said Robinson's daughter, Karen, 40. At the last minute, with help from the Homeowners Help Center, Emma Robinson was able to reinstitute her loan so the extra money owed could be paid back over two years. To prevent foreclosure, she is also considering taking a 40-year mortgage through Countrywide Financial Corp. to lower her payments, or taking a reverse mortgage when she turns 62 next year, though it will mean not being able to leave the home to her children. Klein and fellow legislators have been conducting hearings throughout the state and heard horror stories similar to the Robinsons' for several months. "You find a lot of people who shouldn't have really had a home in the first place that were given ridiculous financing. There were mortgage brokers who lied on the applications. We also had a lot of people who were steered into the subprime market that could have gotten a fixed-rate mortgage," said Klein. "There were lawyers acting for both parties, appraisers appraising properties for much more than they were worth to qualify for a jumbo mortgage. A whole list of things like that." Klein has introduced legislation which would direct the state mortgage authority to refinance subprime loans with a fairer, nonpredatory home mortgage, and other legislation which would require a lender to verify the borrower's ability to repay the loan. State Sen. John Sampson (D-Brooklyn) is trying to establish an urban homeowners' assistance program which will backmortgage assistance programs run by local neighborhood preservation companies. The legislators are also promoting mandatory financial education for mortgage applicants. The Robinsons wish someone had told them what to do as soon as they began missing payments. They originally moved into their house after Emma's 3-year-old grandson Ronald died when he fell out of a Morris Heights apartment window. The family decided they were fed up with pouring money into rent. "I had to get away," she said. "No more babies falling out of windows. That was the worst day of my life." The generations pooled their money for their dream house, decorating it with American flags and planting an apple tree in Ronald's memory. They are desperate to stay in their home. "They better not touch the tree," Emma Robinson said. "That's what I can't stop thinking about." Source: Ny Daily News |
