"It breaks my heart to hear my five-year-old say, ‘I don’t want to leave my home,’” says Merlyn Amaya, an Oakland nanny and mother of three children, including an 11-year-old autistic son. Amaya, like many other victims of the mortgage crisis, was in danger of losing her home. To make matters worse, Amaya’s husband, a truck driver, lost nearly half of his work in December 2006. Her family might have joined the 84,375 who lost their homes due to foreclosure in 2007—seven times as many as in 2006.

Instead, Amaya started working with the Association of Community Organizations for Reform Now (ACORN), which she read about in the newspaper. ACORN helped Amaya meet with her loan company and work out a new payment plan. Amaya was then able to start paying off her loans, securing her home.

So all Californians have the chance Amaya had, ACORN helped pass Senate Bill (SB) 1137, which forces mortgage holders to talk with homeowners about new loan payment options and give them earlier notice of eviction. Because of this new law, many people will receive fairer loan payments and have a better chance of keeping their homes.

“We were tired of people losing houses,” says Dorothy Hicks, a retired operating nurse and ACORN activist, who was a victim of foreclosure and unfair loan practices. “(If we didn’t take action) we all would have been homeless!” ACORN’s strategy for foreclosure protection included:

Working with Senator Perata. Oakland ACORN had developed a relationship with him over the years. They invited him, Oakland Mayor Ron Dellums, and other policymakers to a community forum in December 2007. “Leaders of ACORN presented their recommendation of how to address the foreclosure issue and protect tenants,” explains ACORN organizer Anthony Paranese. Later Don Perata incorporated some of these ideas into SB 1137.

Grassroots lobbying. Members of ACORN and victims of foreclosure “took trips to Sacramento to speak face-to-face with legislators, (about SB 1137),” says Paranese. “We bused our members to Sacramento on numerous occasions to lobby for the bill,” adds ACORN worker Larry Hynson.

Personal testimony. “I went before the Senate,” says Hicks. “I testified that something needed to be done that will help people who have been victims of predatory (unfair or deceptive) lending.”

Persistence! The bill initially lost by one vote, but ACORN members didn’t give up. “I wanted to put up a good fight,” says Hicks. After more lobbying, and with the continual support of Perata, the bill finally passed and was signed into law July 8.

Follow-through. Dorothy Hicks now works on ACORN’s foreclosure committee, meeting with lenders to make sure they follow the new law. “We are trying to get as many people as possible to stay in their houses,” Hicks says, “especially people with families.” Amaya helps other Spanish-speaking residents get connected with the organization.

Seeing results

“SB 1137 will make a difference right away,” Sen. Perata said when the bill was signed. “This legislation is an important piece of the puzzle of how to best protect California homeowners and communities from the fallout from the nation’s mortgage crisis.”

More recently he commented, “I have already heard from constituents that the new law… is making a difference in our communities.”

For more info:

Anthony Paranese, ACORN organizer, 510-434-3110.
To see Don Perata’s speech about SB 1137, go to www.youtube.com/watch?v=9-bbwA6gVIM