Efforts by ACORN to Stop Foreclosures in Brooklyn

September 1st, 2009

Many members with the Association of Community Organizations for Reform Now or ACORN highlighted the aspect of maladjustment of loans by the mortgage lenders in a federal program to support the home owners to ward off foreclosures. The campaign alleged that the lenders failed to make proper use of $75-billion Home Affordable Modification Program by the Obama administration.

In fact to give better focus on the issue ACORN met at Zachary Lareche’s home. Zachary Lareche for the last two years tried in vain to get his mortgage loan modified by the Litton Loan Services.

Goldman Sachs & Co., owned company Litton in Houston also participated in the Home Affordable Modification Program and according to ACORN complains that they failed to provide the modifications within time and hence they could not stop the various foreclosures against the homeowners as the program promised to do.

Lareche who purchased his house in 2001 observed that, “I fell behind on my loan when I lost my teaching job at a charter school that closed, and since then Litton has refused to work with me to make my loan affordable so I can stay in my home. I am relieved that because of the President’s program, Litton will finally feel pressure to work with me so I can stay in my house.”

Originally Lareche’s loan was framed with Chase, and his payments increased from approx $1,200 to $3,000 since he preferred to opt for an adjustable loaning scheme in 2004. He opted for refinancing again in 2006 hoping to gain a fixed loan rate for the next 30 years. However, he landed with a second adjustable loan and in 2007 Litton purchased the mortgages.

Lareche is now self-employed as a Mechanic and works part-time for the NY City Council, while his wife works as a part-time employee for the Board of Education. Pat Boone the NY ACORN President commented that the responsibilities of ACORN to prevent foreclosures and retain families from displacement are not over because the other services have joined hands with HAMP.

Boone noted that, “ACORN will stay on the case for these homeowners, so that servicers comply with the program’s guidelines and develop ‘best practices’ to achieve maximum results.”

According to Donna Marie Jenbrieza, the representative of Litton observed that, “Right now we have about 65,000 active modifications (nationwide) and in fact offered more than 38,000 modifications under the HAMP program.” She further observed that, “Regarding foreclosure moratoriums, when we’re in active work with the customer in finding solution for their delinquencies we postpone the foreclosure sale to give us more time to find solution.”