PIMA AREA LABOR FEDERATION

Dear Brothers and Sisters,

The Pima Area Labor Federation is pleased to share this copy of Safeguarding Your House: A Guide to Foreclosure Prevention and Assistance in Pima County, AZ, a comprehensive, easy-to-read publication that consolidates public and private foreclosure resources.

The mortgage crisis is spreading and hitting new heights: borrowers with good credit now make up the largest share of foreclosures as job losses and pay cuts exact their toll. According to the Mortgage Bankers Association, the wave of foreclosures isn’t expected to crest until the end of next year, that will be about 6 months after unemployment is expected to peak. The foreclosure rate on prime fixed-rate loans doubled in the last year and now represents the largest share of new foreclosures. Nearly 6 percent of fixed-rate mortgages to borrowers with good credit were past due or are in foreclosure. The worst of the trouble continues to be centered in California, Nevada, Arizona and Florida, which accounted for 46 percent of new foreclosures in the country. There were no signs of improvement.

In Tucson, foreclosures are turning out to be an extensive problem. The Tucson housing market currently has around 4,000 homes that have been foreclosured upon. The number is growing. The city has projected that 8,000 new homes will enter into foreclosure, some of these already for sale, and the same number of homes in 2010. This crisis has been fed by the recent upswing in years of “exotic” mortgage products – especially the ARM (Adjustable Rate Mortgage) – as well as predatory lending practices, mortgage fraud, and subprime lending.  A record 12 percent of homeowners with a mortgage are behind in their payments or in foreclosure as the housing crisis spreads to borrowers with good credit.

There is a clear need for action to help stem the tide of foreclosures in Pima County. Unfortunately, homeowners often are unaware of the resources available to keep them in their homes. With the goal of connecting homeowners to these important resources, Safeguarding Your House  provides important contact information for housing counseling agencies, emergency service organizations, legal service providers and much more. We hope that this publication will demystify the foreclosure process and help families take the first step toward recovery. We encourage your feedback and suggestions for future editions of this guide. And we look forward to working with you to protect families and preserve neighborhoods in Pima County.

In Solidairity,

Linda Hatfield                                                             David Garcia

Chair                                                                              Co-Chair

Safeguarding Your House provides answers to everyday questions and was written for easier reading.

Part One:  Getting Help Early

Part Two:  Working with Your      Lender

Part Three:  The Foreclosure Process

Part Four:  Protecting You from   Scams

Part Five:  Facing Eviction

Part Six:  What Programs Can Help