By LILLIAN ROBERTS
Executive Director
District Council 37, AFSCME

Nationwide, 5,000 families lose their homes every day as the wealthiest country on earth suffers its worst wave of foreclosures since the Great Depression of the 1930s. Over 2 million Americans are in danger of losing their homes in the next few years — simply because they won’t be able to keep up with their mortgage payments.

Here in New York City, where studio apartments can sell for $1 million, the army of the dispossessed is growing fast and the homeless count just hit an all-time high. Lenders foreclosed on 1,200 families in Queens from January through March, and 1,100 in Brooklyn. The citywide total has doubled since 2004, and over 15,000 are expected this year.

Our hard-working union members are not immune. On any given day, lawyers at DC 37’s Municipal Employees Legal Services are working to save the homes of about a dozen members who are either already under the gun of foreclosure or dangerously behind in their payments.

When this crisis breaks into the media, the stories are usually about the threats to the banking system or the “housing market.” But I am deeply concerned about the real crisis, the suffering of the human victims, the real people who are actually losing their homes, their savings and their piece of the American Dream.

They are victims of predatory lending by unscrupulous brokers and lending institutions who dangle “subprime” mortgages before people so desperate to buy or keep their own homes that they sign on the line without understanding the fine print.

These predators often know well that their victims can’t really afford the payments, especially when the low introductory “teaser” rate ends and the payments shoot up by hundreds of dollars a month, usually beyond the borrower’s ability to pay. These subprime loans are loaded with hidden fees and exorbitant prepayment penalties or outright prohibitions, which make it difficult or impossible to refinance.

They call this the Neutron Bomb: The lender forecloses and takes the house. The family is devastated, but the house is still standing for the lender to sell again.

The subprime loans are foisted on immigrants, seniors, African Americans and Latinos who often can’t get equal treatment at major banking institutions. Inexperienced first-time homebuyers and people who have to refinance to make urgent repairs are victims of choice for the predators.

I am pressing our elected officials at all levels to take aggressive action against these rapacious lending policies. New York Senator Chuck Schumer, Representative Carolyn Maloney and City Council Speaker Christine Quinn have taken the lead in pressing for strong regulations, such as requiring clearer disclosure of loan terms and holding lenders accountable when they make unaffordable loans.
But I’m not just waiting for laws to change. At DC 37, we are protecting our own, right now. Who else will? Our Municipal Employees Housing Program and our Municipal Employees Legal Services are here for you, whether you are falling behind on your payments or just starting to think about buying a house, co-op or condo.

Union lawyers fight for you
MEHP helps first-time homebuyers buy the smart way. MELS lawyers fight back against predatory lenders who may already have their hooks into you. They can help you get out of trouble, stop the clock on foreclosures, and find affordable financing.

MEHP and MELS leaders offer the following advice to help members avoid scams that target homebuyers and homeowners:

The predators are out there, trying to get rich by stealing your savings, but DC 37 is here for you. To avoid being victimized, I urge members to take this good advice from your union.