1. You warn
that the other shoe is about to drop when it
comes to foreclosures in Arizona. What are
you referring to?
Goddard:
Billions of dollars of payment-option
adjustable-rate
mortgages
(ARMs) were originated in Arizona,
particularly near the end of the housing
bubble. These
loans
allowed many consumers to buy homes and make
a minimum payment that is only a fraction of
the interest due on the
mortgage.
More than 120,000 payment-option
ARMS
are expected to reset in Arizona in the next
12 months. According to experts, a large
percentage of payment-option ARMs could
default once the reset is made.
2. What was
the thrust of the letter you recently sent
with five other attorneys general to the
secretary of the Treasury?
Foreclosures
are devastating families
and communities across Arizona and America.
Our letter emphasized that loan
modifications benefit not just the
borrower
but also the lender and the community at
large. They are not being done fast enough
or often enough. Many borrowers spend hours,
if not weeks and months, trying to find
someone with authority to discuss their
situation. Even then, they are often given
inconsistent and contradictory information.
3. What
advice do you have for homeowners who fear
foreclosure is around the corner?
First, don't ignore the
problem but don't panic. Keep paying on your
mortgage and contact your lender
immediately.
Second, get help at no
charge from a HUD-approved non-profit
counseling agency to assist you in
understanding your options. You can be
connected by calling the Arizona Foreclosure
Prevention Helpline at 1-877-448-1211. The
attorney general's Web site (www.azag.gov)
has a Foreclosure Resource Center and also a
consumer claim form if you suspect a scam.
4. What is
the intent of your "Foreclosure Information
Workbook"?
The workbook, created by
the Arizona Foreclosure Prevention Task
Force, is an excellent tool for homeowners.
It can be downloaded from the attorney
general's Web site,
www.azag.gov, or the AZ Foreclosure
Prevention Task Force,
www.azpreventionforeclosure.org.
