The People's Summit and Tent City was a great success in terms of organizing and bringing together the people throughout the region and various states to elevate the revolutionary conscience of the masses to stand up (against the powers who have waged an economic war against the working class by their corporations, banks, and government entities that do not have the interest of the people at heart) and to fight back to demand what is rightfully theirs as citizens and workers.
Not only did it present a means of organizing and strategy but it sought to unify people from all stratas of society. It sought to educate, and open the necessary dialogue with which to engage the masses.
The camaraderie and solidarity that was felt throughout the summit was an example of what is possible and necessary to fuel the type of resistance needed to effect a much needed systemic change by planning, organizing, strategizing, unifying, televising, communicating, regulating, and escalating militant protest by key organizations and classes that have been left out of the so called economic recovery and to forge ahead with their plan and list of demands to continue this momentum that resonated during the Summit.
KUDOS to our comrades who camped out in the tents to represent the homeless and to bring to conscience the magnitude and impact of homelessness across the country and the neglect to bail out those who have been swindled out of their livelihood which is their property, their jobs, their health care, which should be a right.
All the speakers were of excellent character and their words, no doubt will resonate to keep the fire burning within to make enough inroads to organize mass participation and to continue the struggle to rectify and to eradicate this crime of globalization against humanity both at home and abroad.
KUDOS, to the Latino participation and education of their struggle with immigrants rights and deportation issues, as they made clear who the enemy and aliens truly are and to set straight the many questions surrounding their oppression. Their struggle is truly our struggle and we must remain bonded to their cause of common liberty and justice for all.
KUDOS to the Labor Unions who bravely and militantly showed that they do have some fight in them as they escalated a spirited demonstration throughout the summit that they will continue to be soldiers of solidarity for the working class people all over the world and be the example of confrontation against the capitalist bosses who exploit their labor for profit.
KUDOS to our press agents who exposed themselves to the media and the demands of the people regardless of the consequences to bring enlightenment to the masses and to send out a message that resistance is not futile and that resistance exists, right here, in Detroit to reverberate across the region and put the matter in check as to whether the people have the power to effect change.
KUDOS to our elected officials like Councilwoman Joanne Watson, Senator Hanson Clarke and Jessie Jackson, for bucking the status quo to join us on common ground to support our initiative and help drive the point that both the masses and the elected officials must do their part to save the people from those who continue to destroy their domestic tranquility and pursuit of happiness, liberty, justice and freedom.
KUDOS to the cooks and many members of various organizations who did the labor in erecting the tent city, cleanup, and logistics that was sooo necessary. Their work was a most necessary component and very much appreciated from the beginning to the end.
KUDOS to our performers of poets, hip hop artists, rock bands and folk singers who didn't think twice but showed up to exploit their talents for a worthy cause voluntarily as the people loved what they saw and heard.
And last but not at all the least, KUDOS, to the FIST Youth Organization members and our WW party members from NY and other states who always have the back of the people because their power and influence brought the energy and fuel necessary to pick up the momentum of the Summit by their intellect and support to the cause from the beginning to the end.
WE SHOULD GIVE OUR SELVES A HAND AND SALUTE OUR COLORS OF SOLIDARITY IN DARING TO CONFRONT THE POWERS THAT BE. I THINK WE TRULY PUSHED THE ENVELOPE AND THE WAY FORWARD IS NOT JUST A VISION, BUT CLEARLY DEFINED OVER THE HORIZON.
COMRADES LETS CONTINUE THE FIGHT!
Peace to You All,
Andrea Egypt
Saturday, June 20, 2009
Another Perspective: More Help for "Working People" and The Poor
Week of 6.19.09
Another Perspective: More Help for "Working People" and The Poor
By Abayomi Azikiwe
Abayomi Azikiwe, spokesperson for Moratorium NOW! Coalition to Stop Foreclosures and Evictions, talks about what he feels is irresponsible action by the government and corporations in regard to American employment and the poor. Moratorium NOW! held a protest rally—called "The People's Summit"—outside The National Summit, a conference of business CEOs and leaders which took place in Detroit June 15-17.
Over four million people have lost their jobs in the United States since December 2007 and more than two million people have lost their jobs since the beginning of this year. But neither the corporate community nor the American government have been able to respond to the deepening economic crisis by creating jobs for the unemployed and underemployed.
There are numerous factors involved in this apparent inability by multi-national corporations and the government to create jobs and provide other assistance to families suffering from home foreclosures, evictions, lack of health care and the evaporation of their savings and pension funds. Current policy imperatives of the ruling elites in this country favor the profit-making capacity of the financial sector and the most wealthy business people based in America and abroad. This is to the detriment of the interests of most working people and the poor.
The assumption is that if these banks and firms prosper, the benefits will flow downward to the workers in the form of lucrative employment and social benefits. However, this theory has been totally discredited through the lowering of real wages, the rise in joblessness, underemployment and the widening income gap between working people and the rich.
Many corporations have decided to go to areas of the country and the world where they can more freely exploit workers and consequently reap higher profits. When this system faced collapse during the fall of 2008, U.S. taxpayers were forced to bailout the very same financiers, insurance providers and automotive companies who had engineered the crisis. The collapse resulted in the worst loss of financial wealth since the Great Depression.
There must be a restructuring of national priorities in the United States. The $10 trillion in public funds and Federal Reserve-induced liquidity that was utilized to ostensibly prevent a full economic meltdown in 2008 could have easily been invested in government programs to create millions of jobs in the U.S. There could have been a national moratorium on foreclosures that could have allowed people to remain in their homes pending the outcome of the current crisis.
"Those who have guided the economic policy of the country must yield to the needs of the people who are the engine of any real program of reconstruction and renewal."
At the same time, the $700 billion annual defense budget—including the continuing occupations of Iraq and Afghanistan—is draining the resources of the country in wars that have no end and that could not possibly be won by a western industrialized nation against peoples of the developing world. These Pentagon resources could be re-allocated to build mass transit systems throughout the country, reopen closed schools, and rehire laid-off educators. There could be a genuine effort to repair the national infrastructure. All of these initiatives could result in the creation of millions of jobs.
What is most important in any plans to create jobs and stimulate economic growth is the empowerment of working people and the poor. This is something that receives a hostile response from the corporate community and the federal government. Nonetheless, if people feel they have no influence in the actual operations of the state and capital, their productivity and general outlook will be severely affected.
If there is no rapid reversal of the massive job losses in the U.S., the long-term implications will be catastrophic. With the need for 25 million jobs for the unemployed and underemployed this year, consumer spending will further decline and more businesses could slide into bankruptcy, resulting in even more unemployment.
Consequently, the epidemic of job losses and home foreclosures will contribute substantially to the erosion of living standards and social stability. Those who have guided the economic policy of the country must yield to the needs of the people who are the engine of any real program of reconstruction and renewal.
Another Perspective: More Help for "Working People" and The Poor
By Abayomi Azikiwe
Abayomi Azikiwe, spokesperson for Moratorium NOW! Coalition to Stop Foreclosures and Evictions, talks about what he feels is irresponsible action by the government and corporations in regard to American employment and the poor. Moratorium NOW! held a protest rally—called "The People's Summit"—outside The National Summit, a conference of business CEOs and leaders which took place in Detroit June 15-17.
Over four million people have lost their jobs in the United States since December 2007 and more than two million people have lost their jobs since the beginning of this year. But neither the corporate community nor the American government have been able to respond to the deepening economic crisis by creating jobs for the unemployed and underemployed.
There are numerous factors involved in this apparent inability by multi-national corporations and the government to create jobs and provide other assistance to families suffering from home foreclosures, evictions, lack of health care and the evaporation of their savings and pension funds. Current policy imperatives of the ruling elites in this country favor the profit-making capacity of the financial sector and the most wealthy business people based in America and abroad. This is to the detriment of the interests of most working people and the poor.
The assumption is that if these banks and firms prosper, the benefits will flow downward to the workers in the form of lucrative employment and social benefits. However, this theory has been totally discredited through the lowering of real wages, the rise in joblessness, underemployment and the widening income gap between working people and the rich.
Many corporations have decided to go to areas of the country and the world where they can more freely exploit workers and consequently reap higher profits. When this system faced collapse during the fall of 2008, U.S. taxpayers were forced to bailout the very same financiers, insurance providers and automotive companies who had engineered the crisis. The collapse resulted in the worst loss of financial wealth since the Great Depression.
There must be a restructuring of national priorities in the United States. The $10 trillion in public funds and Federal Reserve-induced liquidity that was utilized to ostensibly prevent a full economic meltdown in 2008 could have easily been invested in government programs to create millions of jobs in the U.S. There could have been a national moratorium on foreclosures that could have allowed people to remain in their homes pending the outcome of the current crisis.
"Those who have guided the economic policy of the country must yield to the needs of the people who are the engine of any real program of reconstruction and renewal."
At the same time, the $700 billion annual defense budget—including the continuing occupations of Iraq and Afghanistan—is draining the resources of the country in wars that have no end and that could not possibly be won by a western industrialized nation against peoples of the developing world. These Pentagon resources could be re-allocated to build mass transit systems throughout the country, reopen closed schools, and rehire laid-off educators. There could be a genuine effort to repair the national infrastructure. All of these initiatives could result in the creation of millions of jobs.
What is most important in any plans to create jobs and stimulate economic growth is the empowerment of working people and the poor. This is something that receives a hostile response from the corporate community and the federal government. Nonetheless, if people feel they have no influence in the actual operations of the state and capital, their productivity and general outlook will be severely affected.
If there is no rapid reversal of the massive job losses in the U.S., the long-term implications will be catastrophic. With the need for 25 million jobs for the unemployed and underemployed this year, consumer spending will further decline and more businesses could slide into bankruptcy, resulting in even more unemployment.
Consequently, the epidemic of job losses and home foreclosures will contribute substantially to the erosion of living standards and social stability. Those who have guided the economic policy of the country must yield to the needs of the people who are the engine of any real program of reconstruction and renewal.
Thursday, June 18, 2009
Detroit to Host 25,000 Social Activists At U.S. Social Forum in 2010
Detroit - Organizers of the U.S. Social Forum (USSF), a grassroots gathering of thousands of activists, will announce plans for a five-day event in Detroit 2010 at a kickoff on Monday, June 22. The kick-off event will be held from 6pm-9pm at the Detroit USSF Office, 23 E. Adams St, 4th Floor (near Woodward Avenue, downtown Detroit), in the Central United Methodist Church building.
A "media availability" explaining the Social Forum will be held at 6:30pm. The evening will include music, art displays, cultural performances and food. A detailed presentation to event attendees will take place at about 6:45pm. Musical performances will take place at about 8pm.
The USSF will take place June 22-26, 2010 at Cobo Hall and Hart Plaza in downtown Detroit. Other workshops and community art and culture programs will take place across the city. The USSF will convene social movements from across the United States and globally. Organizers are reaching out to young people, people of color, unionists, laid-off and unorganized workers, welfare recipients, veterans, persons with disabilities, indigenous people, freedom fighters, collectives, and many others. Key aims are to create an open space and a process for creating movement convergence and coordination, raise awareness of social justice issues, provide opportunities to share experiences, and discuss strategies that create social change and solutions to the problems facing people across our many struggles, sectors, regions, and diversity.
"Detroit is ground zero for the economic crisis facing millions of people, not only here in Michigan, but across the nation," says Maureen Taylor, a USSF staff organizer and Chair of the Michigan Welfare Rights Organization (MWRO). "We are really pleased to host this historic event and we're sure that what happens in Detroit will have a huge impact not only here but elsewhere."
Next year's Social Forum in Detroit is expected to draw upwards of 25,000-30,000 activists. It will build upon the first USSF gathering in Atlanta 2007 that drew an estimated 12,000-15,000 people. Already, committees and working groups are meeting in Detroit and around the country to prepare for next year's forum.
"The USSF Detroit 2010 is going to be exciting since it's much more than just a simple conference or a big networking event," states William Copeland, a USSF staff organizer and member of the East Michigan Environmental Action Council (EMEAC). "This is a large scale and unique opportunity to learn from each other's experiences, shed light on social injustices, and build on community efforts to create real change."
USSF Detroit 2010 will also mark the 10 year anniversary of the World Social Forum process and highlight the international connections of the USSF to a broader global process.
Information about the June 22 kick-off event and Detroit Local Committee USSF activities can be obtained by calling: 877-515-USSF or emailing DetroitInfo@USSF2010.org. For more information about the US Social Forum, visit the USSF 2010 website at: www.ussf2010.org
A "media availability" explaining the Social Forum will be held at 6:30pm. The evening will include music, art displays, cultural performances and food. A detailed presentation to event attendees will take place at about 6:45pm. Musical performances will take place at about 8pm.
The USSF will take place June 22-26, 2010 at Cobo Hall and Hart Plaza in downtown Detroit. Other workshops and community art and culture programs will take place across the city. The USSF will convene social movements from across the United States and globally. Organizers are reaching out to young people, people of color, unionists, laid-off and unorganized workers, welfare recipients, veterans, persons with disabilities, indigenous people, freedom fighters, collectives, and many others. Key aims are to create an open space and a process for creating movement convergence and coordination, raise awareness of social justice issues, provide opportunities to share experiences, and discuss strategies that create social change and solutions to the problems facing people across our many struggles, sectors, regions, and diversity.
"Detroit is ground zero for the economic crisis facing millions of people, not only here in Michigan, but across the nation," says Maureen Taylor, a USSF staff organizer and Chair of the Michigan Welfare Rights Organization (MWRO). "We are really pleased to host this historic event and we're sure that what happens in Detroit will have a huge impact not only here but elsewhere."
Next year's Social Forum in Detroit is expected to draw upwards of 25,000-30,000 activists. It will build upon the first USSF gathering in Atlanta 2007 that drew an estimated 12,000-15,000 people. Already, committees and working groups are meeting in Detroit and around the country to prepare for next year's forum.
"The USSF Detroit 2010 is going to be exciting since it's much more than just a simple conference or a big networking event," states William Copeland, a USSF staff organizer and member of the East Michigan Environmental Action Council (EMEAC). "This is a large scale and unique opportunity to learn from each other's experiences, shed light on social injustices, and build on community efforts to create real change."
USSF Detroit 2010 will also mark the 10 year anniversary of the World Social Forum process and highlight the international connections of the USSF to a broader global process.
Information about the June 22 kick-off event and Detroit Local Committee USSF activities can be obtained by calling: 877-515-USSF or emailing DetroitInfo@USSF2010.org. For more information about the US Social Forum, visit the USSF 2010 website at: www.ussf2010.org
Thursday, May 28, 2009
Homeowner dies resisting eviction
Cops enforce illegal bank foreclosure
Published May 27, 2009 1:55 PM
Mark D. Fussner died May 22 after an hours-long shoot-out with police following the bailiff’s unsuccessful attempt to evict the 44-year-old homeowner. Two 24th District Court officers had come to Fussner’s home on Anne Street, in the working-class downriver Detroit suburb of Allen Park, to carry out a writ of eviction after foreclosure.
Fussner reportedly ordered the bailiffs to leave his property and said he would open fire to defend his home. They left but returned with armed cops determined to carry out the eviction. The bailiffs’ provocation led to the shoot-out.
Fussner was the author of the 2004 book “The Zen of Permanent Weight Loss,” which chronicled his struggle and method of conquering obesity. A short biography of the author on Amazon.com states: “Educated in public schools, Mark designed his first invention at 16 years of age. In 1989 he received an Associate’s [degree] in Science from Henry Ford Community College. Working his way up from the bottom, he has made his career in Design and Project Engineering. ... He has owned and co-owned several businesses.”
After a five-hour stand-off, Fussner was found dead in his basement from a gunshot wound. It is not yet clear if the fatal injury was self-inflicted or if a police bullet killed him. The homeowner had barricaded himself inside his dwelling and exchanged dozens of rounds with cops from at least five cities, including Detroit’s “special response teams” and Michigan State Police. An Allen Park police officer was shot in the arm, leg and stomach early in the stand-off and was released from the hospital the same day. (Detroit News, May 23)
Neighbors and cops reported anywhere from several dozen to hundreds of shots fired by Fussner and police during the incident. People were told to stay in their homes, and schools in the area were put on lock-down. The state police have taken over the investigation, and the Wayne County Medical Examiner’s office will perform an autopsy on Fussner.
Moratorium must be enforced
What is missing from the limited stories in the big-business local media is that Fussner’s death and the entire eviction situation should not have happened under the law.
On May 20, two days before the visit from the eviction bailiffs and the ensuing gun battle that ended Fussner’s life, President Barack Obama signed public law no. 111-22, the Helping Families Save Their Homes Act of 2009. By placing a moratorium on subject foreclosures, the law enhances provisions of the Making Home Affordable Program instituted in March.
The MHAP already requires Fannie Mae, Freddie Mac and other major lenders–which together hold approximately 75 percent of home mortgages in the U.S. and which have been bailed out with hundreds of billions of taxpayers’ dollars—to work out loan modifications in order to avoid foreclosure. These lenders are to lower at-risk homeowners’ monthly payments—including property taxes and insurance—to no more than 31 percent of gross income.
Some of the 14 banks and lenders included under the program are Bank of America, Chase Home Finance, CitiMortgage, Countrywide, Ocwen and Wells Fargo. The MHAP guidelines apply to any homes that are owner-occupied, including homes that are already in foreclosure. (financialstability.gov)
Section 401 of the Helping Families Save Their Homes Act states that it is “the sense of the Congress” that there be a “foreclosure moratorium” in that “mortgage holders, institutions, and mortgage servicers should not initiate a foreclosure proceeding or a foreclosure sale on any homeowner until the foreclosure mitigation provisions” of the Hope for Homeowners program and Obama’s “Homeowner Affordability and Stability Plan” have “been implemented and determined to be operational by the Secretary of Housing and Urban Development and the Secretary of the Treasury.” (thomas.loc.gov)
Where were the headlines on May 21 in the capitalist-owned press about the just-signed Helping Families Save Their Homes Act and its foreclosure moratorium? There were none or very few.
Jerry Goldberg, a Detroit-based attorney who represents homeowners and renters in foreclosure and eviction cases, told Workers World: “The Register of Deeds records show that Mark Fussner’s mortgage was owned by Chase Bank, which had a duty under federal law to work out a solution that should have prevented the bailiff from coming to his home on May 20 to evict him.
“This eviction should not have happened. Fussner’s death should never have happened. It was entirely preventable except that banks and lenders don’t follow the law until they are forced to.”
It took a protracted struggle by activists around the country to win the new federal moratorium on foreclosures. It will take even more struggle to publicize this law and stop more deaths from occurring, as well as other drastic actions by homeowners who face the life-altering, heart-wrenching process of losing their homes in record numbers to foreclosure and eviction.
E-mail: khamel@workers.org.
Articles copyright 1995-2009 Workers World. Verbatim copying and distribution of this entire article is permitted in any medium without royalty provided this notice is preserved.
Workers World, 55 W. 17 St., NY, NY 10011
Email: ww@workers.org
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Tuesday, May 26, 2009
Moratorium needed more than ever
As foreclosures hit new high
Published May 25, 2009 11:05 AM
Home foreclosures soared in April to a record-high rate. One of every 374 homes, or 342,000 homes in the United States, received a foreclosure filing: a notice of default, auction or sale notice, or bank repossession. Filings were up 32 percent from April 2008. (realtytrac.com)
This happened despite predictions by analysts of a lower rate for the month because of high foreclosure activity in March. Rick Sharga, a spokesperson for RealtyTrac, stated: “April was a shocker. ... We had been predicting 3.4 million filings for [all of 2009], but we’ll blow those numbers out of the water.” (cnnmoney.com)
Nevada is the hardest-hit state. One in every 68 housing units received a foreclosure filing in April, more than five times the national average. Filings in the state were up 111 percent from a year ago. In Las Vegas, one in every 56 homes is in foreclosure.
Florida has the second-worst rate in the U.S., with a 37 percent month-to-month increase in foreclosures and a 75 percent increase from last year. In the Cape Coral-Fort Myers metropolitan area, one in every 57 homes received a foreclosure filing during April. Foreclosure activity in April increased 31 percent from March.
California rounds out the top three states, with one in every 138 housing units receiving a foreclosure filing in April. Total foreclosure activity in California was up 42 percent from April 2008.
The six California metro areas of Merced, Modesto, Riverside-San Bernardino, Bakersfield, Vallejo-Fairfield and Stockton are included as having the top 10 highest documented foreclosure rates in the country. Las Vegas is on top, with Cape Coral-Fort Myers, Miami and Orlando, Fla., completing the list.
The top 10 states for foreclosure filings in April accounted for 75 percent of the national total. California had the highest total (96,560), followed by Florida (64,588), Nevada (16,266), Arizona (16,245), Ohio (12,324), Georgia (11,521), Texas (11,314), Michigan (10,830) and Virginia (6,254).
Filings overall were up 32 percent from April 2008 but rose less than 1 percent from March. At the same time, the number of bank repossessions, known as REOs, fell on a monthly and yearly basis, down 11 percent from March.
According to James J. Saccacio, chief executive officer of RealtyTrac, “This suggests that many lenders and servicers are beginning foreclosure proceedings on delinquent loans that had been delayed by legislative and industry moratoria. It’s likely that we’ll see a corresponding spike in REOs as these loans move through the foreclosure process over the next few months.”
Moratorium on foreclosures NOW!
What can stop the crushing home foreclosure crisis in the U.S.? The first thing that should be done by the Obama administration is a declaration of a state of emergency on the national level, or at least in the top 10 states wracked by the disaster.
The federal government easily steps in when natural disasters occur. When a federal disaster area or state of emergency is declared after a tornado, for example, part of the emergency measures include a moratorium on government-backed mortgage foreclosures.
The president is also empowered to take executive measures when a “man”-made catastrophe happens. The same actions should apply to the “foreclosure tsunami” engulfing the U.S. A moratorium on all foreclosures must be put in place immediately to allow homeowners a chance to save their homes.
The quasi-governmental companies referred to as Fannie Mae and Freddie Mac own half the residential mortgages in the U.S. Both were bailed out by the federal government in 2008 to the tune of at least $400 billion.
Fannie and Freddie, along with other major lenders, which include JPMorgan Chase, CitiBank and Bank of America, are required by federal law as well as by the terms of their bailouts and pursuant to the Making Home Affordable Program, to work out mortgage loan modifications. They are supposed to lower at-risk borrowers’ monthly payments, including property taxes and insurance, to no more than 31 percent of a borrower’s gross income in order to avoid foreclosure.
The South Carolina Supreme Court, on the initiative of Fannie Mae, recently issued a temporary restraining order on all foreclosures of participants in the Making Home Affordable Program, to give homeowners a chance to take advantage of the loan modification provisions.
This moratorium should be extended to every state for all loans covered under the Obama/Treasury plan. The moratorium should include unemployed workers’ loans, as well as those of seniors and disabled people, who are disproportionately affected by the foreclosure crisis.
Under the federal Making Home Affordable Program, an unemployed worker must verify that he or she will be receiving unemployment benefits for at least nine months in order to count those funds as income for purposes of negotiating loan modifications. Because of this, many unemployed workers are or will be excluded from being able to take advantage of the program. In a state like Michigan, where the unemployment rate is expected to hit 17 percent by the end of the year, this means unemployed workers who have exhausted or are soon to exhaust their unemployment benefits will continue to lose their homes at record rates.
In addition, Fannie Mae, Freddie Mac, the U.S. Department of Housing and Urban Development and all government agencies have programs or regulations mandating that tenants be offered rental options to stay in properties subject to foreclosure. These programs are routinely being ignored by these government bodies.
In Detroit, for example, Freddie Mac and Fannie Mae are the leading evictors of tenants, many of whom don’t even know that the properties have gone through foreclosure.
There should be an immediate moratorium on evictions of tenants in foreclosed properties owned or backed by Fannie Mae, Freddie Mac or HUD.
The twin catastrophes of high unemployment and delinquent home loans mean millions more workers still face losing their homes as the economic crisis continues. It is time for activists to continue fighting for and begin enacting a foreclosure moratorium on the street, in the neighborhoods and at every level of government.
Articles copyright 1995-2009 Workers World. Verbatim copying and distribution of this entire article is permitted in any medium without royalty provided this notice is preserved.
Workers World, 55 W. 17 St., NY, NY 10011
Email: ww@workers.org
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Wednesday, May 6, 2009
Fannie Mae seeks foreclosure freeze only in S.C.
By Ashley Fletcher Frampton
aframpton@scbiznews.com
Published May 6, 2009, Charleston Regional Business Journal
Mortgage-backer Fannie Mae said it singled out South Carolina for an unusual court-ordered freeze on home foreclosure sales because the state gives local judges the authority to dismiss delayed cases, which other states do not.
Fannie Mae isn’t seeking a similar temporary freeze in other states, said Brian Faith, spokesman for the mortgage company.
“In South Carolina, judges have the discretion to cancel an ongoing foreclosure process if there is a significant delay between the foreclosure judgment date and the actual foreclosure sale,” Faith said in a statement.
If masters-in-equity — the special county judges that usually handle foreclosures in South Carolina — were to dismiss delayed cases, “the process begins anew, which leads to higher costs and losses,” Faith said.
“The court ruling effectively addresses this situation,” he said.
Fannie Mae suspended its foreclosure proceedings in late 2008 and during the first of quarter of 2009 while it reviewed cases for potential workout strategies, Faith said. In some cases, that created significant delays.
At Fannie Mae’s request, the S.C. Supreme Court issued a temporary restraining order late Monday afternoon on foreclosure sales for some homes. It targets properties that could be eligible for a mortgage modification program that President Barack Obama’s administration is rolling out. The program offers more affordable mortgage payments to homeowners whose loans are backed by Fannie Mae or Freddie Mac and who meet certain other criteria.
Fannie Mae did not want homeowners potentially eligible for the program to lose their homes in foreclosure before they had a chance to participate. The mortgage company estimates that more than 1,000 homes in South Carolina were headed to foreclosure sales this week. It filed the petition for a temporary restraining order on Friday.
Obama announced the Home Affordable Modification Program in February, but details were not outlined until April 6.
Masters-in-equity say they are still sorting through the implications of the S.C. Supreme Court order, which requires lenders seeking foreclosure to submit affidavits by May 15 stating whether loans in default are eligible for the modification program.
Homes not eligible will continue in the foreclosure process, according to the restraining order.
aframpton@scbiznews.com
Published May 6, 2009, Charleston Regional Business Journal
Mortgage-backer Fannie Mae said it singled out South Carolina for an unusual court-ordered freeze on home foreclosure sales because the state gives local judges the authority to dismiss delayed cases, which other states do not.
Fannie Mae isn’t seeking a similar temporary freeze in other states, said Brian Faith, spokesman for the mortgage company.
“In South Carolina, judges have the discretion to cancel an ongoing foreclosure process if there is a significant delay between the foreclosure judgment date and the actual foreclosure sale,” Faith said in a statement.
If masters-in-equity — the special county judges that usually handle foreclosures in South Carolina — were to dismiss delayed cases, “the process begins anew, which leads to higher costs and losses,” Faith said.
“The court ruling effectively addresses this situation,” he said.
Fannie Mae suspended its foreclosure proceedings in late 2008 and during the first of quarter of 2009 while it reviewed cases for potential workout strategies, Faith said. In some cases, that created significant delays.
At Fannie Mae’s request, the S.C. Supreme Court issued a temporary restraining order late Monday afternoon on foreclosure sales for some homes. It targets properties that could be eligible for a mortgage modification program that President Barack Obama’s administration is rolling out. The program offers more affordable mortgage payments to homeowners whose loans are backed by Fannie Mae or Freddie Mac and who meet certain other criteria.
Fannie Mae did not want homeowners potentially eligible for the program to lose their homes in foreclosure before they had a chance to participate. The mortgage company estimates that more than 1,000 homes in South Carolina were headed to foreclosure sales this week. It filed the petition for a temporary restraining order on Friday.
Obama announced the Home Affordable Modification Program in February, but details were not outlined until April 6.
Masters-in-equity say they are still sorting through the implications of the S.C. Supreme Court order, which requires lenders seeking foreclosure to submit affidavits by May 15 stating whether loans in default are eligible for the modification program.
Homes not eligible will continue in the foreclosure process, according to the restraining order.
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