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'Hope for Homeowners,' Still Long in Coming
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Dade said she was trying to back away from focusing so much on foreclosures so that her program can still meet its other missions, such as providing pre-purchase counseling, assisting troubled renters and educating consumers about how to manage debt. "We can't spend 80 percent of our time on foreclosures," she said, noting that each foreclosure-prevention client requires about 20 hours of work.
She stressed that she's "not a mean person." It's just that many of the people who come through the door simply don't have the income to handle the debts, even with help. "This is my heart here," she said. "I want these people to come back into homeownership another time when they know what they are doing. . . . Homeownership is not for beginners."
Dade added that there's as big a problem with struggling renters in Prince George's County as with foreclosures. The number of evictions this year is on pace to match last year's 4,600, she said. Dade estimates that her organization is able to help about 56 percent of its cases. About 30 percent have other social issues or mental-health problems that they can't address. And the rest never follow up beyond the initial contact.
Sometimes the best help her office can provide is toward getting together the two or three months' worth of rent a person with bad credit needs for a security deposit on a rental.
William Johnson, executive director of Roots of Mankind, a nonprofit agency in Temple Hills, also said there are some owners they cannot help. "Most of them, we can," he said.
He said some lenders are already writing off some of the debt to make mortgages more affordable. But too many are still offering workouts that try to make up for missed payments by raising the amount owed each month. "If you can't pay $1,000, how are you going to pay $1,800? They're ridiculous," he said.
Johnson said it's all up to the lenders whether they offer "a decent workout." Chase and GMAC, he noted, have been excellent about creating workouts that actually work.
If you're in danger of losing your home, and you think you might qualify for one of the new Hope refinances -- or for other assistance, for that matter -- take the initiative. Call your loan servicer and ask about the Hope for Homeowners program. And, by all means, if your lender tries to reach you by mail, e-mail or phone, respond to the outreach. They may have good news about your eligibility for a refinanced loan you can afford.
E-mail Elizabeth Razzi atrazzie@washpost.com.
