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How The National Mortgage Settlement Could Benefit San Diego Homeowners

Evening Edition

Above: Appaswamy "Vino" Pajanor, president and executive director of Housing Opportunities Collaborative, and Matt Battiata, CEO of the Battiata Real Estate Group, speak with Joanne Faryon about the recent mortgage settlement.

Aired 2/13/12 on KPBS Midday Edition.

Guests

Appaswamy"Vino" Pajanor is President and Executive Director of Housing Opportunities Collaborative

Matt Battiata is CEO of the Battiata Real Estate Group

Transcript

A foreclosed home in Encinitas, California.
Enlarge this image

Above: A foreclosed home in Encinitas, California.

Free Events For Distressed Homeowners

Saturday, February 25, 2012, 10:00 am to 2:00 pm at the Bonita Library details

Saturday, March 31, 2012 Time: 10:00 am to 2:00 pm details

Resources

National Mortgage Settlement FAQs

Mortgage Servicers Involved In Settlement

Ally/GMAC: 800-766-4622

Bank of America: 877-488-7814

Citi: 866-272-4749

JPMorgan Chase: 866-372-6901

Wells Fargo: 800-288-3212

A multi-billion-dollar settlement with the nation's big banks over their foreclosure policies was announced last week.

The $25 billion settlement was meant to assist struggling homeowners with mortgage relief, principal reductions and short sales.

California Attorney General Kamala Harris said California negotiated for the biggest slice of the settlement, about $18 billion.

But while the settlement will bring some money to homeowners who were illegally foreclosed on or who are upside down on their homes, those funds are just a “drop in the bucket,” Matt Battiata, CEO of the Battiata Real Estate Group, told KPBS Television’s “Evening Edition.”

Appaswamy "Vino" Pajanor, president and executive director of Housing Opportunities Collaborative, said since the decision came down, his office has been flooded with calls.

“We’ve been advising these home owners or those callers to take the time off on a Saturday and come to one of our home clinics,” he said.

There, counselors will provide advice free of charge.

Battiata said he does not believe the settlement will stabilize the housing market in San Diego because there are so many people who owe at the peak levels from 2004 and 2005.

“Until the market bottoms out and then comes all the way back to those peak prices, until these people get out of all these homes they really can’t afford, the market really can’t stabilize,” he said.

Full disclosure: The Battiata Real Estate Group has been an underwriter for KPBS.

Comments

Avatar for user 'sparmely'

sparmely | February 13, 2012 at 12:37 p.m. ― 2 years, 10 months ago

I qualified for a modification the last time Wells Fargo got bailed out and was supposed to help homeowners. My "modification" was a 2% discount for 4 years. No write down of the principle. No permanent modification of my interest rate. And Wells Fargo got to take the government"s money to do it. I'm expecting WF to help themselves before their customers this time around, too.

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Avatar for user 'emikohoward'

emikohoward | February 14, 2012 at 2:39 a.m. ― 2 years, 10 months ago


If you're a homeowner with an adjustable-rate mortgage (ARM), you may choose to lock into a fixed rate if you anticipate rates will be going up soon, thereby stabilizing your monthly payments. I have used 123 Refinance to compare refi rates.

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Avatar for user 'Peking_Duck_SD'

Peking_Duck_SD | February 14, 2012 at 9:39 a.m. ― 2 years, 10 months ago

emikhoward, I am a homeowner deep underwater and with an ARM, and I thought, as your post says, this might help me.

But, one of the gentlemen in the interview said only people with an interest rate > 5 something percent will be eligible. My ARM has already got to the point where it adjusts each year, so the interest rate is excellent now, but I am worried because I am still at interest only and when the rates go up my payments will skyrocket.

I would be overjoyed to have the opportunity to refinance, my credit score is excellent and I am not behind on anything, but I see disaster looming in the future.

And I agree with sparmely, my loan is held by WF and they are horrendous leaches who refuse to accept responsibility for their role in the housing meltdown.

Unfortunately, I have a feeling the pessimism expressed in this interview that this will do anything of significance is going to turn out to be true.

If this latest "deal" doesn't give me the chance to refinance, then it might be time to tell WF to kiss off and look at strategic defaults.

I am tired of paying my bills and doing everything completely right, and having the bank refuse to even refinance me as I sit in an upside down mortgage that will readjust and is like an impending train wreck, meanwhile my ghetto-fab cousin in Phoenix walked away from TWO homes over two years ago, and now she is already looking at buying again!

The system is set up for those being responsible to fail, and for those who being stupid to come out smelling like roses.

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