AUDIO: Federal programs aren’t solving mortgage crisis, says Valley housing counselor

FRESNO
February 5, 2010 10:35am

For the tens of thousands of homeowners in the Central Valley whose homes are worth far less than their mortgages, federal assistance programs are worthless, says the former head of a key Valley housing agency.

“I am disgusted with the fact that the entities … are not receptive at all to the needs of the consumer,” says Randall Guerra, who recently quit in disgust as the executive director of the Community Housing Council in Fresno. He says he felt he was just rearranging the chairs on the Titanic.

He says because home values have plunged so deeply, help is simply not available for distressed homeowners.

“The fact is that the majority of our homes are 50 percent underwater. The Housing Affordability Refinance Program never had any chance to get off the ground in states such as California, Arizona, Nevada or Florida,” says Mr. Guerra, who is now trying to help homeowners forced out by foreclosure find places to rent and repair their credit.

(Randall Guerra talks offers his views on efforts to solve the mortgage meltdown crisis in a CVBT Audio Interview. Please left-click on the link below to listen now or right-click to download the MP3 audio file for later listening.)

He says he understands why so many people who can otherwise afford their mortgages are considering simply walking away because it may take a decade for home values to rise to the point that their properties are worth more than their mortgages.

“The banks basically are taking the posture that they’re going to wait this thing out and they’re going to trickle out [mortgage modifications] just to show they’re doing something … but the reality is that they’re more likely to do nothing than something,” he says.

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