MURRIETA: Lenders' absence hampers foreclosure workshop
City officials say only one company accepted request to participate
By NELSY RODRIGUEZ - Staff Writer | ∞
MURRIETA ---- City leaders who organized a recent foreclosure workshop expressed frustration this week that few lenders turned out to participate in the discussion.
During a foreclosure workshop held last weekend at Calvary Chapel in Murrieta, more than 350 residents sought information and advice on keeping foreclosure signs off their front lawns. Participants lobbed questions about their options and the process of foreclosure at representatives from the Fair Housing Council of Riverside County, U.S. Housing and Urban Development and U.S. Rep. Mary Bono Mack, R-Murrieta.
Of about 20 banks and lenders who were asked to participate in the workshop, only one, Washington Mutual, came to the event.
The empty seats frustrated council members, who have been reaching as far as Washington, D.C., for information on how to help residents stay in their homes.
"It's going to take effort on everyone's part to solve the problem," Councilwoman Kelly Bennett said. "(The lenders) are in our community by the fact that they are lending on properties in this town, and they need to be at the table next time."
The workshop was called as the rash of foreclosed properties continues to spread across the state at the rate of 2,000 new listings a day, according to www.ForeclosureRadar.com, an online database that tracks foreclosed homes. Murrieta distinguishes itself even within Riverside County, which has one of the highest foreclosure rates in California, with 787 homes already repossessed and nearly 1,600 others headed in that direction.
The six-hour workshop, coordinated by Murrieta officials, brought housing advocates and distressed property owners together. Homeowners were given the opportunity to ask questions directly related to their circumstances and possibly start renegotiating their loans with lenders, assisted by housing advocates.
"It was one of those bittersweet experiences," said Councilman Doug McAllister. "These are real people, and that was sobering."
Along with passing ordinances related to the maintenance of foreclosed properties, the city has taken numerous steps to address the issue. A second workshop for elected officials to brainstorm ways to help at-risk residents is in the works. In addition, city staff members intend to answer more than 175 written questions posed by the workshop participants on the city's Web site soon, said Brian Ambrose, a senior analyst with the city.
Murrieta also plans to open a local office for the Fair Housing Council, a nonprofit housing advocate, within the next few weeks, said Nancy Driggers, assistant to the city manager.
Driggers said the council will use a conference room in the Murrieta Public Library two days a week to help homeowners address their mortgage issues.
McAllister said having a housing advocate locally will help residents who feel they have no ground to stand on when they talk to their lenders, a point further evidenced by the lack of lenders at the workshop.
"This is beyond a numbers game," McAllister said. "We're all busy, none of us has time, but it's important because these are real lives."
John Sini, a Realtor with The Homebuyers Marketplace in Murrieta, who has lenders in his office, said he received an e-mail from the city inviting him to the workshop, but he had other arrangements for the day.
While he agreed that some communications among the different parties invested in the housing market could be useful, homeowners won't get anywhere until they actually contact their lenders.
"Everybody's in the same boat," Sini said. "And one entity is not going to be willing to compensate enough to satisfy the other. It's going to all boil down to how open their bank is to modifying their terms."
Contact staff writer Nelsy Rodriguez at (951) 676-4315, Ext. 2626, or nrodriguez@californian.com.
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Pieter wrote on Jul 19, 2008 3:39 AM:Banks don't care, they're going to be bailed out by the Feds anyway.
... wrote on Jul 19, 2008 12:11 PM:as are the stupid people who bought houses with no money. They will be rewarded while the responsible ones foot the bill, as usual.
Nancy wrote on Jul 19, 2008 12:22 PM:Well...the "credit crises" is showing its ugly face. No one wants to lend to borrowers who are underwater on their properties. Too risky! Alas, the lenders learned their lesson too late, and now the economy is crippled. And the good faith estimates that lenders provide borrowers have always been a bunch of baloney. Just about everyone has had a role in this whole mess, and shares the blame. Very sad.
Bill wrote on Jul 19, 2008 6:49 PM:The bank executives, mortage lenders, and realtors all made their big money and now they're crying and the tax payers have to bail them out...why? We want free-market mechanisms as long as everything is doing fine, but in times of crisis, all the banks and brokers on Wall Street want socialism! It turns out socialism is alive and well in America!
Observer wrote on Jul 20, 2008 7:58 AM:Where were all the regulators and our elected officials who were suppose to be monitoring the build up to this mortgage mess? Maybe asleep at the switch or just counting up their share of the profits being raked in their pockets! Anyone who looked should have been able to see how risky these loans were and how much funny money was floating around in the lending markets.
As to the disappointment that so many invited bankers or lenders didn’t send representatives to this meeting, whoever was coordinating this event dropped the ball. They should have gotten a firm commitment from the lenders beforehand. In any event, this crisis is going to get a lot worse before it starts to get better.
Frank wrote on Jul 20, 2008 7:59 AM:People who bought houses with no money down are not stupid. Neither are those that managed to get into homes on less than favorable terms. In some cases, they may not have understood the terms and it may have been their first home purchase. If they are asking for help to stay in their homes, it doesn't sound to me like they are looking for a tax payer paid bailout. They just want what was done wrong, corrected. It's really quite frustrating that only one bank showed up at this event. In my opinion, it shows that the ones really looking to get at the tax payers money for a bailout is the banks, not the borrowers.
Murrieta Madness wrote on Jul 21, 2008 9:06 AM:"It's going to take effort on everyone's part to solve the problem". Nice quote Bennett, is that off page 103 in the book of "Ambiguous Political Quotes". I don't blame the lenders,Murrieta passes laws to fine/cost lenders and then wants them at the head table for their "Roast". Politics with absolutely no substance. As for the 175 questions, the city attorney will be paid to screen that mess ,so as not to liable the city for any advise,Murrietans hope.
Rae Rae wrote on Jul 21, 2008 1:55 PM:The borrowers were just the pawns. Any bailout is for the big banks. They should ditch those places after buying another one on the same street at a big discount. The regulators were told to stand down lest they do anything that might impeed the "growth" that was going on in the economy during the blowing up of the bubble. The lenders don't want to be there because the crowd might be hostile and want to ride them out of town on a rail.
LYNNE wrote on Jul 25, 2008 11:34 AM:TO ...
YOU ARE VERY PRETENTIOUS AND YOU DON'T UNDERSTAND THAT MOST OF US BUYING A HOME WANTED OUR VERY OWN HOME TO RAISE A FAMILY LIKE ANYONE ELSE- THE LENDERS PROMISED US THAT EQUITY CAN ONLY GO "UP" AND WE CAN ALWAYS REFINANCE LATER- THEY DID GET THEIR PROFIT, AND WHEN EVERYTHING TUMBLED, THEY BAILED.
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