For all workers, home ownership is a cornerstone of economic security. But the sense of security once represented by home ownership has disappeared. The rise in predatory mortgage lending and the collapse in the housing market have left many working families in California on the brink of disaster.
Whether facing foreclosure or a devastating loss in the value of one’s homes, California’s working families are the hardest hit in the nation. With over half a million foreclosures in 2008, California’s fore¬closure activity increased by 110 percent in just one year.
When a home is lost to foreclosure, a family is forced to relocate. In many cases, they have spent their life savings and destroyed their credit trying to meet monthly payments, making it difficult to qualify for rental housing. Children are taken out of school and communities are disrupted. Ten¬ants often get little notice of a foreclosure, forcing many into homelessness. Surrounding home val¬ues plummet, especially when foreclosed homes remain vacant and abandoned.
Widespread foreclosures are also destroying our state and local economies. The U.S. Conference of Mayors anticipates a loss of at least $4 billion to California cities in declining property, sales, and transfer taxes. This jeopardizes the jobs and services our members depend upon.
What is Being Done
The foreclosure free-fall has trapped families in home loans they cannot afford. The best way to keep families from losing their homes and to stabilize the housing market is to promote afford¬able loan modifications and to regulate mortgage lending to prevent this type of crisis from happening again
In California:
Nationally:
Additional Resources
- Union Privilege “Save My Home” Hotline Union members, their parents, and their children can call for free, confidential advice 24 hours a day, 7 days a week, with counselors from a non¬profit, HUD certified housing counseling agency: 1-866-490-5361.
- Working America
- Center for Responsible Lending
- National Conference of State Legislatures (state-by-state bill tracking):
Foreclosure legislation
Mortgage Reform Legislation - RealtyTrac (to find foreclosures rates)
Contacts