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Seminar Counsels Residents Facing Mortgage Woes

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By DAVID SOMMER, The Tampa Tribune

Published: February 18, 2008

NEW PORT RICHEY - Some lost their jobs. Some got divorced.

Others who attended the homeowners education seminar Saturday simply bought houses they could not afford, often with the help of predatory mortgage lenders out to make a buck.
Florida ranks behind only Nevada in the percentage of foreclosures fueling the current housing bust, Pasco County Community Development Manager George Romagnoli told about 120 people at the Richey Suncoast Theater.

But unlike many markets where real estate speculators got in over their heads, Pasco is seeing a high percentage of average homeowners being forced to abandon their dreams, Romagnoli said.

There were 630 foreclosure lawsuits filed in Pasco in January, and more than 75 percent of those cases involved homesteaded properties or owner-occupied homes, he said.

"Half of the loan failures have balances of under $150,000," Romagnoli said. "These are affordable homes."

Only 26 percent, most located in new subdivisions in Land O' Lakes and Wesley Chapel, involve foreclosures on loans totaling more than $210,000, a sign of someone who took out a loan they probably knew they could not repay, he said.

"In other counties, it might be speculators losing properties; but in Pasco, for the most part, it's homeowners," Romagnoli said.
Steve Masterson of Holiday is a bit of both. He said his wife sued for divorce two weeks after they bought what was supposed to have been an investment home, where he now lives.

Instead of renting out the home to make a profit, Masterson said he is struggling to make mortgage payments that include spiraling insurance costs.

Masterson said he used to make good money as a construction crane operator, but there is no work for him in today's depressed real estate market.

"I got a raw deal, but I'm trying to dig my way out of it," he said.

Saturday's seminar included information on how to apply for a $5,000, interest-fee loan to cover taxes and other mortgage-related expenses.

Fred Sager of Shady Hills said he got into mortgage trouble after his son lost his job and could no longer make payments on a home in the Shadow Ridge subdivision. Sager was a co-signor.

He said the seminar inspired him to try and renegotiate the loan terms, so he can sell the now-empty house at a reduced rate.

"I'm just a middle class guy trying to protect my good credit" rating, Sager said.

Many of those in attendance did not want to be quoted by name. That is probably because they are embarrassed that they were talked into an adjustable-rate loan that has ballooned past the point they can afford, said mortgage broker Gene Cunningham.

"What it comes down to is common sense, and there is a major lack of common sense everywhere out there," Cunningham said.

Real estate broker Len Trubia said he came to the seminar looking for solutions to share with clients. Trubia said he has refused to sell homes to people who obtained preapproval for subprime and adjustable mortgages he felt they could not afford.

"Not everybody is innocent in this thing," Trubia said. "There has to be integrity in this business. I call it dirty money" when a home is sold to someone who will not be able to make the payments.

The sponsor of Saturday's seminar, U.S. Rep. Gus Bilirakis, R-Palm Harbor, said anyone who missed it is welcome to call or visit his office for information on a variety of programs designed to help homeowners avoid foreclosure.

That office is located at 35111 U.S. 19 N., Suite 301, in Palm Harbor. The telephone number is (727) 773-2871.

Reporter David Sommer can be reached at (727) 815-1087 or dsommer@tampatrib.com.

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