HALT TO HUD’S PRACTICE OF AUCTIONING HOMES TO CORPORATE INVESTORS

TAKE BACK THE LAND ROCHESTER EVENT
Tuesday September 9th at 12pm
Rochester Housing Authority
675 West Main Street, Rochester, NY

Contact: Julie Gelfand; , 585-259-4906, Ryan Acuff ; 585-455-0961

TAKE BACK THE LAND ROCHESTER CALLS FOR:
THE HALT TO HUD’S PRACTICE OF AUCTIONING HOMES TO CORPORATE INVESTORS, AND THE END OF THE HUD/FHA PRACTICE REQUIRING THAT BANKS EVICT HOMEOWNERS TO RECEIVE INSURANCE PAYOFFS

New report shows that the federal government is aiding Wall Street financiers while further destabilizing neighborhoods, while FHA/HUD eviction policy contributes to rash of vacant homes.

ROCHESTER — Struggling homeowners and community members will deliver a demand letter to the Rochester Housing Authority 675 West Main St., Rochester NY (the local agency of HUD in Rochester) at 12:15pm on September 9 in support of a nationwide call to action to protest HUD’s controversial program that auctions off distressed home loans to for-profit investors at considerable discounts. In addition, protesters will call attention to HUD’s destructive policy of requiring foreclosing banks to evict homeowners in order to receive insurance payoffs, rather than allowing them to stay in their homes while negotiating to buy their homes back. Three local homeowners, facing HUD sponosered bank evictions will be present.

The Distressed Asset Stabilization Program (DASP) is administered by the Federal Housing Administration (FHA) and is meant to both provide funding for the Mutual Mortgage Insurance (MMI) fund while also aiding in the stabilization of distressed American communities. A new report to be released on September 9 shows that while the program is successfully providing the capital necessary to keep MMI afloat, it is failing in achieving its second goal. The report, “Vulture Capital Hits Home: How HUD is Helping Wall Street and Hurting Our Communities”, is authored by the Center for Popular Democracy and the Right To The City Alliance. The report will be available at 9:00 am Eastern on Tuesday Sept 9th at: http://homesforall.org/campaign/action/tell-hud-stop-selling-our-neighborhoods-to-wall-street/ Struggling and “underwater” homeowners, community leaders, concerned neighbors calling on HUD to halt further sales of FHA insured mortgages until reforms to the controversial DASP program are implemented.

HUD/FHA’s requires foreclosing lenders to evict homeowners in order to receive insurance pay offs. This policy has resulted in a vast number of vacant houses in Rochester. Take Back the Land is demanding that this policy be reconsidered, allowing underwater homeowners to remain in their homes while negotiating a buy back to remain there. This will slow the growth of vacant and deteriorating homes in our community.

The event being held on September 9 is part of a series of similar actions being planned in more than a dozen cities throughout the country

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