Pr. William Immigration, Housing Ills Seen as Linked

That was the prevailing view in Prince William for years, said several lenders who worked with Hispanic immigrants. Customers with little more than a tax identification number and a pay stub were able to secure 100 percent financing on mortgages. The lack of a driver's license -- let alone a green card -- was hardly an obstacle to getting loans.

To cover high mortgages on low wages, many immigrant families rented rooms in their homes to men working in the construction industry.

"All those people who rented rooms are gone," said Carlos Aragon, a Woodbridge real estate agent who said he sells one-third as many properties as he did two years ago. "And now these measures come along to finish killing off the market," he said.

County supervisors unanimously approved a resolution in July seeking to deny certain public services to illegal immigrants. They also directed police to check the residency status of anyone caught breaking the law if there is probable cause to think a suspect is an illegal immigrant. Although the measures have not been implemented, Hispanic leaders and residents say the policies have created a climate of fear in the Latino community and will lead to racial profiling.

The board has not discussed the potential impact of the measures on the county's housing market, said Supervisor W.S. Covington III (R-Brentsville). But Covington said Prince William would save on school expenditures and other costs if thousands of illegal immigrants leave.

"How many are going to leave naturally because of opportunities in the housing market drying up, and how many are leaving because of our policies?" Covington said in an interview. "If there is a significant number of departures, I think we'll be a more financially stable county."

Nearly 20 percent of the county's population is Hispanic, according to the most recent census estimates. Covington said he thinks that a significant portion of all county residents -- perhaps 7 to 8 percent -- are illegal immigrants. If one-third to one-half leave the county voluntarily or by deportation, he said, "maybe you do have some real savings, or you just don't grow as much."

"I don't see it as a bad thing," he said. Complaints about overcrowding in schools and neighborhoods have been a driving force behind the county's new measures.

But many real estate agents shudder at the prospects of a drop in population and more foreclosures. With little equity in their properties and adjustable-rate mortgages adjusting sharply upward, some immigrant families are gathering up their belongings and walking away from their homes in the middle of the night, several real estate agents have said.

"These people are slammed," said Mary Donaldson, a former mortgage settlement consultant. She's now a loss-mitigation specialist who negotiates refinancing agreements and short-sales for homeowners who fail to sell their properties at the original purchase price. "They've lost their jobs because the construction industry has slowed or shut down, and when they get into trouble, they don't read their mail. A lot of them just don't understand the process, and they're so afraid that they can't talk to the bank."

Several of Donaldson's Hispanic customers have recently cited Prince William's policies as a reason to move.

"They're not going to stay if some of their family members are being forced out because of the new laws," she said. "I think the banks may end up with a lot of houses they didn't suspect they'd end up with."

But credit concerns, not immigration policies, are on the minds of most market watchers eyeing Prince William, said Rob Heltzel, president of the local chapter of the Virginia Mortgage Lenders Association.

Is immigration policy "being wildly talked about in my sector of the industry?" he said. "No. Our conversations are purely about the availability of funds."

As for the accusation that county supervisors have exacerbated the county's real estate pains, Heltzel said he doubts that the struggling industry factored into their policy decisions.

"I think the issue was a lot greater than the housing market," he said.