Los Angeles activists mobilize to stop foreclosures

Although President Barack Obama has created mandatory and voluntary directives to mortgage lenders that they negotiate loan modifications with homeowners in default or foreclosure or in jeopardy of either, many have refused to do even what is minimally necessary to stop evicting renters and foreclosing on homeowners.

One company that fits this description is Aurora Loan Services, owned by Lehman Brothers Bank, Inc. This company, which itself may be auctioned off by Lehman Brothers, at times will stall homeowners requesting a loan modification. And many times, according to the Labor/Community Coalition to Stop Foreclosures and Evictions, it flat out refuses to negotiate and threatens applicants with immediate auction dates and home evictions.

The coalition organized a Los Angeles news conference March 20 at the South Central home of Mauricio Alas, which Aurora threatened to auction off on April 3. The noontime media event was attended by many national and local broadcast media in addition to the Chinese news service Xinhua.

“How can it be that these financial institutions that caused this crisis in the first place and receive our tax dollars are allowed to ignore federal mandates to modify loans and refinance homes?” asked Gloria Saucedo of Hermandad Mexicana Transnacional, part of the Labor/Community Coalition, which offers free loan modification and counseling assistance to homeowners and residents.

Rosie Martinez, executive board member of Service Employees Local 721, stated her frustration with Aurora: “Many of our union members are facing the same problems with their home loans. This is a national crisis and we are in a state of emergency. Since these companies are getting away with ignoring federal guidelines, we need at least a two-year moratorium on all foreclosures, especially here in California where the unemployment rate has reached over 10 percent.”

In an unusual turn, the media reported the event very sympathetically toward the homeowners. They showed a tearful Alas holding his children and explaining how important this home is to him and his family and his willingness to work to keep it despite Aurora’s behavior. In one of the broadcasts a reporter said the station tried to contact Aurora but the company refused to answer their calls. Visuals of the block where Alas lives showed homes boarded up due to foreclosure.

Alas may be upset about Aurora’s irresponsible behavior, but this is not deterring his will to fight, not only for his home, but for the homes of other renter and homeowner victims of this economic crisis.

Along with other families facing foreclosure, Rosie Martinez, Gloria Saucedo and Martha Rojas, who chaired the news conference, were also featured in the news coverage. “What are these people supposed to do—live in the streets?” asked Rojas, questioning Aurora to the cameras.

Some of the stations also publicized the national April 3-4 actions in New York targeting Wall Street and the April 3 “tent city” action planned at Bank of America in downtown Los Angeles.

Organizers said this was just the beginning of actions against Aurora. All of the families attending said they would get the word out and build a fight to stop the auctions and foreclosures.