Congress holds foreclosure hearings in Cleveland

CLEVELAND -- Of all the places in the country hurt by foreclosures, Cleveland is one of the hardest hit.

That's why a Congressional subcommittee came to town Monday to see what additional federal regulations might help people who are losing their homes or about to lose them.

The Subcommittee on Housing and Community Opportunity held a field hearing at Cleveland State University's Joseph E. Cole Center for Continuing Education.

Democratic Congresswoman Maxine Waters of California chaired the hearings which included several Ohio congressional representatives.

Cleveland congresswoman Stephanie Tubbs Jones said the committee was looking for real solutions and results for homeowners and renters seeking assistance. Hundreds, if not thousands of properties in her district face foreclosure.

While Congress explores tightening regulations on lenders, Tubbs Jones called on property owners to do their part. "You must, you must understand what you're signing and you must understand who you are operating with. It is so very important," she told the people at the field hearing.

"If you don't pay attention to what you're doing and get some financial literacy information and understand the process, we can't stop what's going on."

Bankers, lenders, and community organizations working to help save people's homes all testified during the four hour hearing. Lou Tisler, who heads the Neighborhood Housing Services of Greater Cleveland, said people in trouble with their home loans or mortgages must act early to prevent foreclosure.

"Nothing is worse than doing nothing," says Tisler. "You really need to reach out and talk to a HUD housing counseling agency, whether you call us, whether you call one of our colleagues."

Tisler says the earlier in the foreclosure process a homeowner seeks help, the greater the chance the home can be saved.

Michael Van Buskirk, President and CEO of the Ohio Bankers League told the congressional panel it costs banks more to foreclose on a homeowner than it does to work to keep them in the house.

He emphasized the need for homeowners to reach out at the first sign of trouble and not to hesitate to talk to a legitimate lenders, otherwise the foreclosure crisis will go on.

"Most Ohio mortgage brokers were ethical and did comply with lending laws," Van Buskirk testified, "however as history has repeatedly proven scoundrels will flow into an enforcement vacuum."

Congress is considering a number of regulations to deal with the effects of the subprime mortgage and foreclosure crisis.

In Cleveland's Slavic Village and Broadway neighborhoods where foreclosures have hit tremendously hard, Lou Tisler says a hundred people per week walk through the doors of his office seeking help. Another hundred call but never take the next step of actually getting the assistance they need.

"The longer you wait the harder is it for us to help you," Tisler says. "If we hear from you within 90 days of your first problems, chances are greater we can help you save your house. Even six months out there is still hope."