CAHRA receives funds to help struggling homeowners

Attorney General Terry Goddard recently announced that Arizona would provide a substantial increase in assistance for Arizona homeowners facing foreclosure as a result of a consumer fraud settlement with the Attorney General’s Office. 
 
CAHRA is one of 12 nonprofit housing counseling entities in Arizona to receive a combined $1.3 million from a multi-state consumer fraud settlement last year with Bank of America (which acquired the defendant Countrywide). CAHRA will hire additional counselors to work with homeowners on foreclosure alternatives, as well as provide counseling help for consumers at risk of losing their homes.
 
The settlement resolved allegations that Countrywide, prior to 2008, used unfair and deceptive tactics in its loan origination and servicing activities and placed borrowers in structurally unfair and unaffordable loans.
 
“It is our hope that these settlement funds will have a positive impact on families throughout the state who are in great need of counseling assistance to help them stay in their homes,” Goddard said. “The problem is so acute that additional staff can make a big difference. Homeowners should exercise great caution before paying for any foreclosure “rescue” services. More helpful services are being provided for free by these HUD-approved housing counseling agencies.” 
 
Arizona continues to be at the center of the housing crisis, along with Florida, California and Nevada. About 6 percent of all housing units in Arizona received a foreclosure filing in 2009. National data released today show a record 2.8 million households were threatened with foreclosure notices last year – a 21 percent increase over 2008.About 20 percent of all mortgages nationally are “under water” with negative equity; in Arizona, the estimate is 68 percent.  

“Until the housing crisis is resolved, the Arizona economy cannot fully recover,” Goddard noted. 

“We are pleased that we have been awarded this funding to help more Pinal County families who are threatened with imminent foreclosure,” said Mary Lou Rosales, CAHRA Executive Director. “It is very difficult for a homeowner to know how to get through all the barriers placed by lenders,” she added. CAHRA’s Foreclosure Mitigation Counselors can help. “We have trained counselors that will provide the services free of charge,” she said.  
 
“Since different situations require different needs and programs, we have learned to specialize in more than just loan modifications. We have successfully helped home-owners who were current, 30 days, 60 days, and 90 days past due,” she said. Trained counselors provide one on one counseling sessions to discuss options and strategies with the delinquent or impending defaulted borrower. 
 
Free help is available to homeowners who have questions or need help working through their housing situation by calling CAHRA at 520-466-1112.   
 
Arizonans who believe they have encountered fraudulent activity through so-called “rescue” scams can file a complaint with the Arizona Attorney General’s Office, Consumer Information & Complaints, www.azag.gov or 800-352-8431.

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