Even as home prices show signs of stabilizing, home foreclosure rates in California remain alarmingly high. In the second quarter of 2009, foreclosures in Los Angeles were up significantly from the first quarter of the year, to 9,263, according to PropertyShark.com, a real estate data site that tracks first-time residential foreclosures.
The problem is especially acute in Los Angeles, a University of Virginia study found, in part because "more than 20% of mortgage holders ... were paying at least 50% of their income in housing-related costs."
Losing a home rarely stems from a single cause. It may begin with the purchase of a property that is too expensive, or a decision to borrow for a remodeling project or to help a family member in need. And once homeowners become overextended, they are vulnerable. Job loss, illness or death can quickly lead to foreclosure.
Legal Aid of Los Angeles put The Times in touch with five homeowners who had walked through its doors in recent weeks seeking help. They shared their stories with Op-Ed contributing editor Sara Catania. These are the edited transcripts of her interviews.
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James Byas: Constant scramble
My house, which is on Virginia Road in Wellington Square, was purchased by my parents in 1955 for $18,000. It was built in 1921, a two-story Tudor-style home with big picture windows, a fireplace and hardwood floors. I grew up there with my three older sisters and my parents, who were married for 63 years.
When my mother became ill, I moved back in to take care of her, and when she died in 2005, the house became mine. Herein lies the problem. Over the years, my mother had borrowed against the house several times. The last was in 1995 when she borrowed $145,000 to help my sister buy a house.
I'm a musician, and my income is unpredictable. I took in boarders to help pay the mortgage, which was $1,032. I kept up with it until early 2008, when I had to deal with some major plumbing repairs. That threw me for a loop, and I got two months behind on the mortgage. After that, I picked up the payments and continued paying each month. But the bank stopped cashing my checks. In September of 2008, the bank sent me back all the checks I'd written since I missed those payments. By then, I was getting default notices and foreclosure threats.
I tried contacting them, but they refused to talk to me because it was my mother's name on the note, not mine. An auction date was set for Dec. 21, 2008.
