Huge Increase In Bay And CA Foreclosures

RICHMOND, Calif., Jul. 20, 2007 (KGO) (KGO) -- Homeowners in some Bay Area communities are defaulting on mortgages at a record pace. In the first three months of this year, defaults in Contra Costa County are up two hundred twenty-five percent.

Statewide, there are nearly 500,000 homeowners currently facing foreclosure. Eleven percent of all subprime adjustable rate mortgages are past due, and analysts keeping track of it all say it will get worse.

For Richmond homeowner Robert Harrell, it all happened at once. The security guard supervisor lost his job, at the same time his mortgage company hiked his mortgage rate.

"Which just about doubled my house payments, which put me behind so," said Harrell.

When Harrell started missing some of his payments, the mortgage company began foreclosure procedures.

"They just wanted their money," said Harrell.

The 62 year old was four months away from losing his house when he contacted the Community Housing Development Corporation of North Richmond...

Maria Benjamin of the Community Housing Development Corporation has a stack of 1500 default notices. Flanked by Robert Harrell and Congressman George Miller, she made the pitch that people with mortgage troubles need to get help.

"Go to a reputable HUD approved housing counseling agency like CHDC&and Mr. Harrell did&and he's not going to lose his house," said Benjamin.

Robert Harrell told his story of how with help, he was able to get his mortgage payments straightened out. Congressman Miller says it's not always the homeowners fault for failing to read the fine print.

"Phony appraisals were turned in. Phony loan sheets were turned in, and very often purchasers' loan sheets were changed," according to Miller.

Miller says lawmakers are working on legislation, prosecutors are investigating lenders, and homeowners in trouble shouldn't wait to get help.

"And don't be ashamed about problems that you have with your mortgages. It's better to look at people and say hey, I've still got my house...amen," exclaimed Harrell.

This week, Federal Reserve chairman Ben Bernanke said the government is cracking down on unfair and deceptive lending practices. He also said even though foreclosures are spiking, the problem is likely to get worse before it gets better.

Get more News »

• Email
• Print
• Report a typo
•