The extra time is the gist of a plan proposed by Sheriff William G. Mullen to ease the impact of foreclosures caused by the nation's mortgage and credit crisis.
Mullen said Wednesday that the additional time from the day that homeowners receive notice of a pending foreclosure would be used by lenders and borrowers to meet and work out deals for lower mortgage rates, revised payment plans or new loans to help keep hundreds of property owners in their homes.
"We are trying to do as much as we can to minimize the impact of foreclosures in the county with people losing their homes," he said.
Monthly sheriff's sales in the county are averaging 370 a month, with a large majority of those owner-occupied home foreclosures, Mullen said.
The figure is down from an average of 386 per month last year, but still a concern.
With thousands of homeowners facing upward resets of adjustable-rate mortgages, organizations working to help say the situation could get much worse in coming months.
According to some estimates, as many as 5,000 Allegheny County homeowners could face problems when their mortgage payments increase this year.
Mullen's plan is under consideration by Joseph James, president judge of Allegheny County Common Pleas Court, who has jurisdiction over sheriff's sales.
"I would say we are in the middle of the process," James said yesterday, estimating that a formal plan could be in place by the fall.
"We're excited because we really have a chance to make a difference in Allegheny County," said Maryellen Hayden, lead organizer for the local chapter of the Allegheny County Association of Community Organizations for Reform Now, known as Acorn.
Acorn is among a number of nonprofit groups working to help those impacted by the mortgage and credit crisis.
As reported by the Tribune-Review, Acorn asked Mullen in May to go as far as ordering a temporary moratorium on residential foreclosures to help convince lenders to agree to negotiate or work out problem loans.
The proposal would be similar to what happened in Philadelphia earlier this year, when the county sheriff won support from Philadelphia City Council and Philadelphia County's president judge for a one-month moratorium, which led to an agreement with lenders.
The agreement provides for a "conciliation conference" to be held for owner-occupied properties involving the borrower, an advocate for the borrower and an advocate for the lender 45 days after the foreclosure filing. Homeowners must meet with a housing counselor at least five days before the conference to complete a proposal to deal with the mortgage default.
National City Bank spokesman Bill Eiler said the bank is "committed to working with our customers who have difficulty making payments. A number of workout options may be available to our customers."
Hayden, of Acorn, said she would like to make sure the Allegheny County plan includes a requirement for an independent counselor to be an advocate for borrowers.
Millvale resident Thomas Brennan said he looks forward to the outcome.
He's facing a sheriff's sale Monday because his lender, Chase Financial, has not been willing to negotiate or even accept payments from him on his mortgage, which now totals $72,000 -- up from $47,000 originally in 2003-- including fees and interest charges.
"I'd like to stop it (the foreclosure) tonight," Brennan said before attending a community meeting yesterday sponsored by Acorn with Mullen.
Help is available
A variety of organizations and agencies stand ready to assist area residents seeking help in dealing with potential mortgage foreclosures.
Officials believe they can help more people than have inquired or applied for assistance so far.
Below is list of telephone numbers and other information for contacting organizations offering help:
• Neighborhood Housing Service Pittsburgh or NeighborWorks: 412-281-9773 or 412-281-1100
• Action-Housing Inc.: 412-281-2102
• Advantage Credit Counseling Service: 888-511-2227
• Acorn: 412-441-6551
• Urban League of Pittsburgh: 412-227-4163
• Mon Valley Initiative: 412-464-4000, ext. 4008
• Pittsburgh 311 hotline. For most city residents, dial 311. Others may dial 412-255-2621 or access the Web site.
No comments:
Post a Comment