In the face of thousands of foreclosures in the San Fernando Valley and South Central Los Angeles (and across the nation), One LA-IAF organized homeowners into negotiations with banks and crafted a unique solution involving shared sacrifice on the part of homeowners, the banks and the public. The City of LA has adopted the strategy as the Los Angeles strategy and invested $1 million into the innovative pilot project; this project will offer “silent second” loans to incentivize lenders to make loan modifications involving the forgiveness of principal debt, in the bank’s interest. Local leaders secured commitments from commercial banks to reduce principal on bank-held loans in the project areas, and are now in conversation with HUD and Treasury officials about broader potential application across the US.
In Arizona, as well as California, local organizations are working now to ensure that that their respective state housing finance agencies are utilizing recently granted federal funds wisely.
PRESS / MEDIA
Boycotting Chase: Parish Members to Withdraw Savings, La Opinion [in Spanish]
Foreclosure Prevention Aided by Collective Negotiation, California Catholic Conference (01/2011)
CalHFA Principal Write Down Plan is Bank Bailout, Sacramento Bee (07/2010)
Blog about California IAF Action, James Wasserman (07/2010)
Priest Becomes Savior in Foreclosure Crisis, CNN (04/2009)
Video: Priest Becomes Saviour, CNN (04/2009)
Video: What About Homeowners?, Brave New Films Foundation (02/2009)