Cleveland Residents Hope to Save the American Dream
America is in the midst of a foreclosure crisis. That's not news to many people. In fact, for many it's the focus of daily worry and concern. As adjustable rate mortgages (ARMs) are resetting and families find themselves unable to make their mortgage payments, foreclosure is becoming a sobering reality for households across the country.
Luckily, the situation is not as bleak as it may seem.
In Cleveland, Ohio, citizens are taking action to fight against foreclosure. Reports indicate that Cleveland's 44105 zip code region has the highest rate of foreclosures in the country. According to a WKYC News article, activists from the East Side Organizing Project and Empowering and Strengthening Ohio's People are worried that, as more ARMs reset in the next few months, many citizens will be homeless.
Some families will be looking at staggering increases in monthly payments of more than 50%, which they would not be able to afford.
In response to the seriousness of the situation in 44105, a group called "Save the American Dream" was launched last week. Their main goal, according to reports, is to head off as many foreclosures as possible by convincing home lenders to impose a moratorium on ARMs for two years.
With this measure in place, argue its supporters, homeowners will have time to get help from counseling services and re-structure their loans. And they won't be the only ones benefitting.
According to WKYC, leaders of the movement note that lenders stand to gain from this move as well as borrowers, since they'll continue to receive what payment their clients can afford, rather than being owed sums that people simply don't have.
Some mortgage lenders have allegedly agreed-voluntarily-to the moratorium. Countrywide, one of the nation's biggest lenders, reportedly has not. Some activists believe that the practice of predatory lending is to blame for so many foreclosures, and have accused Countrywide of just such practices.
Perhaps this is not surprising, considering Countrywide, too, is facing some financial difficulties. The mortgage lender is reportedly in the process of laying off as much as 20% of its workforce across the nation. Countrywide, it seems, is in a similar situation to many residents of 44105.
Activists with Save the American Dream say that 600,000 ARMs are scheduled to reset in October. That record-breaking number could leave residents homeless, sources say. And that would not be beneficial to the community.
The Save the American Dream program's participants hope to alert the country about the troubles plaguing the residents of Cleveland. If early success is any indicator, they will succeed-apparently, international press representatives were in attendance at the launch of the program, curious to learn how the American foreclosure crisis will affect the international economy.