Renee Washington DeFreitas, a 51 year old state employee and mother of five
did everything she was supposed to: she worked hard long hours, volunteered for
overtime when it existed, saved her money, and bought a home with the hope that
she would have something as she grew older, both for herself and her children
and grandchildren.
But along came the economic crisis. State workers were forced to take pay
cuts and furlough days, non-paid days that drastically reduced her already
meager salary. And her husband, whose income she had counted on left.
Her once “dream home” has now became a
nightmare.
Imagine trying to pay a $1,200 mortgage for a modest row home in Baltimore
and taking home only $1,400 a month. What’s left to pay utility bills,
food or transportation? Nothing.
Renee did everything.
In her own words in a letter to HOPE, she stated, “I worked my whole
life so I could get my own home, which I did, and also make me proud to have my
own, but now it’s a burden. I have used my savings to pay my mortgage,
along with my 401 (k). I’ve even gone as far as asking family members to
help. I have went into my insurance policies in order to keep my
house.”
She also did everything right with Bank of America filling out long forms
and submitting over 44 pages of documentation to its BAC Home Loan Servicing to
apply for a home modification on her loan. She did this all in a timely
manner.
But, at the same time that she was being advised to fill out forms and to
get in touch with HOPE, Bank of America was beginning the foreclosure process
through the law firm of Cohn, Goldberg & Deutsch.
Renee Washington DeFreitas needs our help. She represents the thousands of
workers who are being unjustly and even illegally thrown out of their homes.
Please sign the petition below to the Bank of America and to local and state
political leaders.
THE FORECLOSURE CRISIS IS GROWING
By the government’s own accounts (www.house.gov) approximately 7 million homeowners will lose
their homes in the third quarter. Julie Gordon from the Center for Responsible
Lending testified that with the effects of high unemployment millions more
would be added to these numbers. She estimated that by the time this crisis
abates as many as 13 million families will have lost their homes.
The Home Affordable Modification Program has fallen short because banks have
simply not abided by the law. The promise of HAMP was that 3 to 4 million
homeowners would be helped with loan modifications. But to date only 650,000
homeowners are now in a trial modification. Only a fraction of those have
actually received a permanent loan modification.
In addition HAMP does not address those workers who have lost their jobs
completely, a major shortcoming for the 30 million who are unemployed and left
out in the cold.
BIG BANK BAIL OUT CONTINUES BEHIND THE SCENES
How is it that bank profits are rising while foreclosures grow
exponentially? The reason is that the government is increasingly guaranteeing
bank losses due to foreclosures by reimbursing the lenders at the full value
for overvalued mortgages when there are defaults. This “silent
bailout” continues every day.
Fannie Mae and Freddie Mac, which guarantee about half of the
country’s mortgages, were taken over by the government in July 2008.
Fannie and Freddie are burning so much cash bailing out the lenders that the
Treasury is considering an infusion of another $400 billion in taxpayer funds
into these entities (New York Times, Dec. 17).
Coupled with funds from the AIG and GMAC bailouts, which are being utilized
to pay off lenders on foreclosed properties, it is estimated the total
government lifeline to the banks could rise to $1 trillion.
The effect of this continued bailout is that it actually discourages bank
lenders from reducing the principal on mortgages whose values they inflated
through their predatory lending practices. This is because they know the
government will pay them full value. In addition, why even abide by HAMP and
keep people in their homes, when there is so much profit to be made in
foreclosing.
MORATORIUM NEEDED
The Moratorium-Now Coalition in Michigan and the Community/Labor Coalition
for a Moratorium in Los Angeles have been leading the way in calling for a
moratorium on all foreclosures and evictions.
The present situation cries out for a moratorium. Jerry Goldberg, an
attorney with the Moratorium-Now Coalition pointed out, “Even the Helping
Families Stay in Their Homes Act passed in May 2009, states that it is the
sense of Congress that there should be a moratorium on foreclosures until the
Treasury Department certifies that HAMP has been implemented.” HAMP has
obviously not been implemented.
TOGETHER WE CAN STAND UP AGAINST THE BANKS
The banks could care less! It’s time for the people to make them do
what’s just and right: “No more foreclosures; No more
evictions.” Let’s work together to not only keep Renee DeFreitas in
her home but also every one from Baltimore to LA, from Detroit to Miami, from
Cleveland to Houston.
In Baltimore, we are launching a campaign to stop Bank of America’s
foreclosure of Renee DeFreitas. This includes not only this national petition
campaign, but picket lines, meetings and protests. It also includes utilizing
whatever legal avenues may be at our disposal. This campaign will show that
people can stand up, fight back and win.
We cannot allow a trillion dollar bank like BOA, which has received millions
of our tax dollars to destroy the lives of our friends, neighbors and
co-workers. Every empty house not only crushes the dreams of its former
occupants—it crushes the dreams of an entire community.
We can’t and won’t allow them top do it. If push comes to shove,
we will organize a “Community Stay-in at Renee’s House” to
stop the sheriff.
Issued by:
Network to Stop Foreclosures & Evictions
2011 N. Charles St. Lower Level
Baltimore, Maryland 21218
Phone: 410-218-4835
Email: apcbaltimore@pipeline.com
