Paulette Aurignac 6

T 1 V JLen/ -A. N/OUUM& L **W ( N\>MSE^ *U • MAtCH :i, lo o < l » WW\W, r*\* $ tA N b D A \ _vy. v k + News editor: Kate McIntyre mustangdailynews(S gmail.com Friday, March 12, 2010 Many stay home RANCHO OBISPO as banks defer some evictions A p a r tm e n ts Alana Semuels to remain in their homes, essentially lO S A N d E IE S I'lMES rent-free. www.ranchoobispoproperties.com Several factors are driving the LOS ANGELES — It's been 16 trend, industry experts say, includ months since Eugene and Patricia ing government pressure on banks Harrison last paid the mortgage on to modify loans and keep people in their lVrris, Calif., home. Eleven their homes. months since the notice got slapped And with a glut of inventory in on their front door, warning that it places like Southern California's In would be sold at auction. land Empire, Nevada and Arizona, A terse letter from a law yer came lenders are loath to depress hous eight months ago, telling them that ing prices further by dumping more P" their lender now owned the house. properties into a weak market. Three months later, the bank told Finally, allowing borrowers to them to pay up or get out by the stay in their homes helps protect the lb ........ end of the week. bank's investment as it negotiates *£ * " • Still, they remain in the yel with the homeowners, said Gary low ranch-style home they bought Kirshner, a spokesman for Chase seven years ago for $128.(100, with bank, a major lender. its views of the San Jacinto Moun “If the person’s in the property, tains. They’re not planning on go there's less chance for vandalism, and ing anywhere. they're probably maintaining the “We're kind of on pins and nee house," he said. Our specialty is month- different floor plans for dles, but who’d want to leave w hen Economists say the situation won't to-month leases or 6 2 bedrooms. Call us now you put this kind of energy' into a last forever, but in the meantime the to view our apartments. house?” said Eugene Harrison, 70, “amnesty may allow at least some month leases with rent gesturing toward a bucolic mural of homeowners to regain their finan reduction of $100.00 off Located next to Irish mountains, stream and flowers the cial footing and avoid eviction. regular monthly rate. We Hills Shopping Center. couple painted on the living room In the Inland Empire,an estimat offer 1 bedrooms and 2 wall. ed 1(10,0(10 homeowners are living Throughout the country, people rent-free, according to economist continue to default on their home John 1 fusing, who based that num 1796Tonini Drive, Unit 64 loans — but lenders have backed off ber on the difference between loan 805-782-2933 on forced evictions, allowing many San Luis Obispo CA 93405 see Evictions, page 3 r $ is Student Living at it s f in e s t S h o r t W a l k L a r g e Room s • Low Cost G r e a t F o o d www.stennerglen.com Friday, March 12, 2010 M ustang D aily 3 www.mustangdaily.net N ew s policy to partner with delinquent Evictions borrowers. Citibank said this month College couples shack up continued from page 2 that it would let borrowers on the brink of foreclosure stay at their delinquencies and foreclosures. In homes for six months, whether or Jessica Barba Guevara said they have rented sev again. dustry experts say it’s difficult to say not they make payments, if they MUSTANG DAILY eral apartments to couples, and they “At least for me, I just really how many families are in that situ turn over their property deed. have never had any difficulties with wanted to live on my own, and liv ation nationally because only banks Such policies may partly reflect Kit Schimandle, a former Cal the partners trying to get out of ing with him was already like hav know for sure how many customers the fact that lenders can’t keep up Poly student, met her boyfriend their leases. ing a roommate, so it would be have stopped paying entirely. with all the foreclosures, some say. during the first month of school, and “Usually when that happens, like living with a friend rather than But Rick Sharga of Irvine, Calif., “The mortgage lenders are so by May they both decided it would they don’t get new roommates and someone random,” Axsom said. RealtyTrac data tracker notes that backlogged that some people are be a good idea to live together the they finish up the year. They are al They had been dating for a little the number of loans in which the able to slip through the cracks,” said following year. By June they had ways aware of their lease terms so over a year when they decided to borrower hasn’t made a payment in Kathryn Davis, a real estate agent at broken up but still remained friends, they don’t try to get out of it,” Gue live together. Santoianni said the 90 days or more but is not in fore America’s Real Estate Advocates in and for the next months, their rela vara said.“It is life, and not everyone idea came up casually, and despite Corona. tionship was on-and-off. stays together, but for the most part, having had a bad experience co closure is at 5.1 percent nationally, a That was apparently the case for “I started dating someone else we have had good experiences with habiting with another girlfriend, he record high. And yet the number of the Harrisons, who were told at so it was really awkward, and then 1 couples and no police have ever knew this time was going to be dif foreclosures last year was 2.9 mil various times that their house had brought a boy home and he got re been involved.” ferent. Axsom agreed. lion, below the 3.2 million that Re been sold, that it belonged to some ally pissed. I avoided it all fall quarter, The number of cohabiting cou “I was nervous at first ‘cause I’d altyTrac economists predicted. one else and that it was empty. but it was hard talking to my boy ples in 2007 was 6.4 million, a 22 never lived with a boyfriend, but for More evidence is provided by “It’s been frustrating, a real major friend with him around, and 1 didn’t percent increase from the previous our part it just felt natural just com another firm, ForeclosureRadar, pain in the buttocks,” said Eugene want to move,” Schimandle said. year, according to USA Today. Also, ing home, having him be there. It which says it now takes an average Harrison, a nondenominational They put two beds in the room the number of cohabiting couples made it a lot easier to have our sepa of 229 days for a bank to foreclose minister with a clipped mustache they shared in their Mustang Vil made 10 percent of all couples in rate lives ‘cause we knew we would on a home in California after send and a sudden laugh. lage apartment, but when the situa the U.S., including those married be coming home to each other,” ing a notice of default, up from 146 The Harrisons missed their first tion become too uncomfortable for and engaged. Axsom said. days in August 2008. payment in October 2008, shortly Schimandle, she asked her parents The data showed that half of the When asked if the couple had “For some reason, banks are be after Patricia Harrison, 57, lost her to pay for the rest of her lease and non-married couples now living any problems since moving in, she ing more lenient with homeown job as a healthcare aide and her hus moved into Poly Canyon. together had never been married said while they have argued, they are ers who are behind on their loans,” band’s part-time towing work dried “Now 1 don’t know why we previously and were under the age no different from any other couple. Sharga said. “Whether it’s a strategy up.They said they applied for a loan both thought it was going to last,” of 30. Santoianni said the biggest conflict to try and slow down the volume modification with Countrywide she said.“We never didn’t get along, Despite statistics and research the couple has faced was just decid of foreclosures or simply a matter and that’s why we are still friends done by organizations like Colum ing where to live. of the banks being able to keep Financial (since acquired by Bank today, but we weren’t working to bia University that show only 26 “I grew up in Morro Bay and up with volume is something that of America) but were told that they gether in a relationship.” percent of women and 19 percent she grew up in Los Osos, and 1 hat banks only know for sure.” couldn’t receive one until they were She said living together isn’t for of the men marry the person with ed Los Osos, but we moved to Los Lenders say the trend reflects three months behind on their pay everyone, and couples planning whom they were cohabiting, living Osos,” Santoianni said. their efforts to work with borrow ments.

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