Click here for a video of our executive director with fox news memphis in 2007

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AGENCY LOOKS TO STOP FORECLOSURES

MEMPHIS, TN, APRIL 30, 2007:

Everyone has heard the story far too many times of a family who buys their dream home, lives in it an average of 2.3 years and loses their home to the lender due to foreclosure. Well, that story came as a surprise to the Taylors who bought they’re first home 3 years ago. The Taylors bought their first home and everything was going fine, backyard family get togethers, birthday parties, but then on that 25th month of owning their home their mortgage payment increased over $300. The Taylor’s contacted they’re mortgage broker whom they did their mortgage with only to find their broker was no longer in business. They then contacted the actual lender only to find their mortgage broker did give them a “FIXED RATE” loan! a “Fixed Rate” that would only stay fixed for 2 years, then move to an Adjustable Rate Mortgage or better known as an “ARM” loan. This came as total payment shock to the Taylors who live on a very strict budget. Six months after unsuccessfully trying to refinance the loan the lender foreclosed on their home forcing to them to move back into an apartment. The Taylor’s say, “They’ve lived the American Nightmare for the last 6 months”. The Taylors aren’t the only ones living the American Nightmare according to numbers from RealtyTrac (Dec 2006). Memphis ranked #10 in the country for foreclosures. Although we hear the word “foreclosure”, I’m not sure if everyone understands the impact of a foreclosure. First, we must acknowledge the most important element relating to a foreclosure, which is the fact that a fellow neighbor, a family, has lost their home, and they could potentially be left homeless. Secondly, we must understand that victims of foreclosure face challenges with their credit scores. In fact, their credit, from a lending aspect, becomes ruined for a minimum of 2 years. When these former homeowners purchase again they should expect that lenders will penalize them tremendously by requiring the borrower to pay a higher rate and by offering limited financing options.

The Tennessee Housing Protection Agency (THPA, a nonprofit organization) was created to help solve the problems of a deteriorating housing market, and to prevent so many families from losing their homes in Tennessee, with a particular focus on the Memphis area. It is estimated that over 2.2 million Americans will lose their homes due to sub prime mortgages. Unfortunately, Memphis is a leader in the country, holding 26% of these sub prime mortgages. Some have predicted that Memphis will suffer its hardest hit with foreclosures within the next 2 years.

One program that THPA has created is the “Neighbors Helping Neighbors” program. This program’s philosophy is that Memphians will no longer sit still as fellow neighbors and their families lose their homes. This program is supported by the help of local churches such as New Bethel of Germantown and Olivet Christian Fellowship, located on Knight Arnold, to name a few. Our “Neighbors Helping Neighbors” program is also supported by local mortgage bankers and brokers. Helping Hands Lending and Fidelity Mortgage are among the list of contributors to this program.

When thinking about our agency and seeing our community come together, I am reminded of the story of the Good Samaritan, and how eloquently Dr. Martin Luther King told the story. It simply says that many people passed their battered neighbor, afraid of what may happen to them if they stopped to help the shabby man. Then, the Good Samaritan came by and had a different mind set, not worrying about what would happen to him if he stopped to lend a hand. Instead, he worried what would happen to his weather beaten neighbor if he did not stop. With the help of our community, the Tennessee Housing Protection Agency will stop for every homeowner, with the sincere belief that “Together, we can Save Homes, One House at a Time”.