Commentary by John Shields

You may have read the statistics in the paper or seen footage of house after house with a for sale sign in the yard on the news. I almost became a statistic, and those houses could have been my home.
    My name is John Shields, and I almost lost my home to an adjustable rate mortgage. I took action and got help, but it’s going to be a long process and it’s not over yet. I’m telling my story so that maybe one other family like mine will also be able to stay in their home.
    My wife and I bought a home in Stockton that had four bedrooms and a big back yard. My story is like so many others. I work in San Jose and needed a safe, stable home for my wife and four children. Prices were high and only seemed to be going up. My friends and neighbors talked of bidding wars on homes, so I felt lucky just to find a place that I could reasonably commute from and, most importantly, afford. I got two loans called a “first” and a “second” mortgage — a common thing home buyers do to avoid paying monthly private mortgage insurance premiums.
    My loan broker suggested I get adjustable rate loans on both mortgages so that my monthly payment would be lower. She said I would be able to refinance before the rates adjusted upward and not to worry. Lower payments meant more income for my family each month and rising house prices assured me that I would be accruing equity as soon as I moved in. It all sounded like a good plan.
    I knew what I was signing — I just had no way of knowing that when the rates adjusted, so many people would walk away from their homes that house prices would drop. First, I tried calling my broker, but she literally had abandoned her business. Every phone number I had for her was useless. She was nowhere to be found.
    I started calling my lender, but I was having trouble talking to anyone that could help me. I sent email after email to them, looking for a way to keep my mortgage payments under control. I was getting desperate and was very afraid that we were going to lose our home. I was mad at everyone — my broker, my lender, myself. How could this happen to me?
    Finally, I saw an advertisement for a nonprofit organization that would work to find options for homeowners in my situation. I knew the government’s plan to freeze interest rates had just been announced, but I didn’t know if they could help me. Turned out that Governor Schwarzenegger had brokered a deal with the major lenders to freeze interest rates at the teaser cost for a while in hopes of keeping people in their homes until the market turned around so they could have the opportunity to refinance into better loans.
    I’m so thankful that I took initiative and called the HOPE hotline. We’re currently working with my lender to find the best solution for my situation. I’m a real, hard working Californian who wants others to know that there is real hope for families just like mine. The most important thing I want to stress to other homeowners in this situation is this: Do not stop talking to your lender. You need to answer your phone, and you need to read the notices they are sending you. You do not need to walk away from your home. There is hope.
    This isn’t a race, class or gender issue. This is a California issue, and you are among thousands who are in very similar situations. I was one of them. Contact your lender or call the HOPE hotline at (800) 995- HOPE. If it worked for my family, it could work for yours.
   For more information, go to www.YourHome.ca.gov