Atlanta Society category interest

By Community Foundation for Greater Atlanta

Matthew Todd, program associate, Housing Funds for the Community Foundation for Greater Atlanta, recently spoke with Jennifer Rentenbach, senior attorney at the Atlanta Legal Aid Society’s Home Defense Program, about the organization’s critical work in housing advocacy, the challenges homeowners experience and the resources available to protect and empower them in the face of rising property values and housing scams. Following are excerpts from their interview.

MT: Can you tell us about the work Atlanta Legal Aid does regarding housing?

Within Atlanta Legal Aid, we have a specialty unit called the Home Defense Program (HDP). HDP provides advice, referrals and legal representation to homeowners who are facing the loss of their homes, have been targeted for predatory mortgage lending or servicing practices, and/or have been wrongfully denied loan modifications or other mortgage assistance. Most HDP clients are longtime homeowners, elderly and/or disabled living on a modest retirement or disability income, or families experiencing layoffs or substantially reduced wages.

Atlanta Legal Aid’s General Law Units provide advice, referrals and legal representation for tenants, to help individuals and families maintain the homes they have, to increase access to affordable housing and to improve conditions in which people live.

Also, our Veterans Law Project assists veterans who are unhoused or experiencing housing instability with legal matters that are creating barriers to achieving housing stability.

JR: What are common issues or trends Legal Aid sees in homeownership cases?

With appreciation in home values in metro Atlanta, we are seeing an unfortunate uptick in home scams – people trying to trick struggling homeowners out of the title to their homes, and/or out of the equity in their homes. One kind of scam we have recently been seeing a lot of is what we call a foreclosure “rescue” scam. These scams can take different forms, including homeowners who may be at risk of foreclosure unwittingly paying money for “help” with a loan modification (usually no help at all), or signing a deed or bad sales contract with the scammer without understanding what they’re signing. The unfortunate result of these scams can be that the homeowner loses title to and/or significant equity in their home.

We also see a good bit of tangled titles resulting from heirs property issues – fractured ownership divided among numerous heirs of the original homeowner(s). If the heirs living in the home fall behind on the mortgage loan the original homeowner took out, fractured ownership can be a barrier to accessing potential options from the mortgage servicer, such as a loan modification, to get caught up on the mortgage and avoid a loss of the home.

MT: What are the challenges legacy homeowners face and what steps can be taken to help them stay in their homes?

One thing we routinely look for is whether the homeowner is getting all the property tax exemptions they may be entitled to. High tax bills can lead to unaffordable escrow increases on a mortgage and/or tax liens on the property, placing the homeowner at risk of losing their home to foreclosure or tax sale. We often have clients who have no idea that they qualify for property tax exemptions that would significantly lower their property tax bills. A homeowner who lives in their house as their primary residence should apply for the basic homestead exemption. Additional disability, veterans and senior exemptions (generally at age 62, 65 and 70), where applicable, may further significantly lower a property tax bill.

Often, tax bills have increased because of rising tax assessment values, particularly in rapidly developing in-town neighborhoods. Many people don’t realize they have the right to appeal their tax value when they receive the assessment notice, which may help reduce their taxes. For Fulton County residents, Atlanta Legal Aid is working with the Atlanta Beltline Partnership and Grove Park Foundation to provide one-on-one consultations about the tax assessment appeal process, on July 10, 13 and 17. Interested individuals can sign up for a consultation here.

JR: What resources or programs are available for homeowners to learn about their rights, how to avoid losing their home unjustly and stay in their homes?

For homeowners who find themselves struggling with their mortgage payments, a HUD-certified housing counseling agency may be able to provide free help, including help with applying for loss mitigation options such as a forbearance, repayment plan or loan modification. Some HUD-certified housing counseling agencies also offer first time homebuyer workshops, which can provide valuable information for those aiming to purchase their first home. HUD-Certified housing counselors in the homeowner’s area can be found at www.hud.gov/findacounselor.

Homeowners who may have legal issues can contact Atlanta Legal Aid to see if they may qualify for our legal assistance: www.atlantalegalaid.org or 770.817.7538.

For homeowners who may have been the target of a scam, we encourage you to report the scam to the Federal Trade Commission.

For homeowners who have suffered a Covid-related financial hardship, financial assistance may be available from the Georgia Homeowner Assistance Fund or the DeKalb County Mortgage Assistance Program (for DeKalb County residents).

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