A program to help desperate people keep their homes out of foreclosure attracted thousands of people to Los Angeles. The program is called “Save the Dream,” and it pairs homeowners with an advocacy group that offers to help renegotiate their mortgages.
Almost a quarter of the homes sold in the second quarter were foreclosed homes, according to the foreclosure tracking website RealtyTrac.
It is possible to purchased foreclosed homes for more than a 25 percent discount. The rate of foreclosures around the U.S. is dwindling, but 340,000 homes went into foreclosure last month. Since the recession started, 2.3 million homes have gone into foreclosure.
For help from “Save the Dream,” hundreds of men and women started camping out and standing in line a day early to access mortgage help.
Shirley McCoy, a widow with cancer, arrived around 6 a.m. but still had more than 1,000 people in front of her in line. She is on a fixed income, but paid more than 50 percent down for her home. However, Wachovia Bank has rejected her for refinancing twice.
“I’m never late, I make every payment, but I still get denied,” McCoy said.
At “Save the Dream,” organizers put people like McCoy together with banks. The organization held a similar event last year, but more people showed up for the latest event.
The crowd, McCoy said, is evidence that many people are still struggling.
“Shows you how desperate people are,” she said. “I hope Obama sees this, cause he needs to know how desperate people are. The mortgage companies need a spanking. Especially Wachovia.”