While the recently passed housing-rescue bill will bring some much needed aid to some 400,000 cash-strapped homeowners struggling to make their monthly mortgage payments, the legislation may be too little too late for many others. That is, unless you're a famous jazz vocalist with some prominent friends willing to lend a helping hand.
The Associated Press reports that, "Jazz vocalist Ernestine Anderson's home has been saved from foreclosure - for now, thanks, in part, to music legend Quincy Jones and contemporary jazz artist Diane Schuur. More than $43,000 poured in - including donations from Jones and Schuur - after recent news stories about the Seattle jazz legend's financial woes, Carmen Gayton, a friend of Anderson's family, told the AP."
Jazz vocalist Ernestine Anderson recently rescued her home from foreclosure thanks to generous financial donations from fellow musicians and fans. Photo courtesy of Jazzfestivalbern.ch/media/press.
Will donations be enough?
The 79-year old, four-time Grammy nominated musician missed more than $30,000 in back-payments and taxes on the home. Located in Seattle's central district, Anderson's property is in an area of the city where more than 200 homes face foreclosure, the AP reports.
The home, which has been in Anderson's family since 1946 (the singer bought it from her parents), was initially scheduled to be auctioned on July 11. But thanks to the kind contributions from fans and friends, the proceedings were halted.
The recent donations, however, may not be enough to decrease the monthly payments on Anderson's principal loan balance of more than $450,000. According to AP, a financial manager is working pro bono to look for ways to restructure Anderson's loan, which has monthly payments of more than $4,400. James Kelly, president of the Urban League of Seattle, told the AP that counselors will try to find out how Anderson got a loan that now asks for a monthly payments that are triple her income. Gayton said Anderson's monthly income, which is $1,000 from Social Security and some additional funds from her limited live performances, should have never qualified her for such a loan.
Predatory lending
Unlike other celebrities such as Jose Canseco and Michael Jackson, who landed themselves on the foreclosure hit list this year, Anderson's situation is a prime example of the predatory lending practices that have fueled the foreclosure crisis in this country and unfairly robbed thousands of hardworking families out of their homes. These types of lending practices often target the elderly who are on fixed-incomes and already struggling to make their current mortgage payments. While some of these subprime loan products promised cheaper monthly payments initially, many naive home buyers fell victim to hidden fees and inflated adjustable-rate mortgages they could never afford to pay with their allotted income.
Anderson luckily got to save her home, but for the millions of Americans who didn't have a Quincy Jones to turn to, foreclosure was unavoidable. Soaring foreclosure rates in this country tell a bigger story than just percentages and figures. They are about the families who no longer have a home of their own, because of unscrupulous lending practices and the failure of an industry to properly monitor themselves.
People can donate to "The Ernestine Anderson Fund" at any Bank of America branch.
Got hot local housing tips or a story you want to share? Contact Amy Le at openingdoorsblog@homescape.com.
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