Public Employee Press

Are you facing foreclosure? District Council 37 can help

For far too many homeowners, foreclosures are turning the American Dream of home ownership into a financial nightmare.

The DC 37 Municipal Employees Housing program can help members who are homeowners with sub-prime or adjustable rate mortgages that have become too expensive to pay, and homeowners who believe they have been scammed by predatory lenders (see box below).

Many who bought homes two or three years ago in New York City’s inflated housing market have sub-prime mortgages that may now cost hundreds of dollars more each month. Minority homebuyers, the elderly and buyers with bad credit have been the top targets of sub-prime mortgage sellers and are being hit hard by foreclosures.

Many high-risk borrowers are saddled with other debt — car loans and mounting balances on the credit cards. Missing two or three mortgage payments is a clear warning sign that foreclosure looms.

In New York City the number of foreclosures has jumped 55 percent from 2006 to 2007, according to California-based Realty Trac. Nationally, foreclosures are up 93 percent over last year.

A homeowner who falls behind in the mortgage may be approached by lenders and brokers offering to re-finance the loan — but be careful. DC 37 members who are facing foreclosure should call DC 37’s Municipal Employees Housing Program (MEHP) at 212-815-1814 or the union’s Municipal Employees Legal Service at 212-815-1111.

MEHP has partnered with several banks that offer counseling and programs to refinance home loans with fixed rate mortgages to qualified borrowers. MELS will defend legally those facing foreclosure and victims of predatory practices. Members who contact the union for help can avoid losing their homes and jeopardizing their equity and credit rating.