by David Chapman
Staff Writer
JALA attorney, foreclosure expert meets real estate community
As a foreclosure expert and attorney with Jacksonville Area Legal Aid, much of April Charney’s time is spent in courtrooms or in front of other attorneys discussing foreclosures and educating others on how to become trained in assisting homeowners.
She’s traveled all across Florida and other areas of the country to talk of the severity and need for action against the crisis, but Tuesday she found herself in a place far from any courtroom or classroom.
Instead, she was in front of close to 100 different realtors and members of the real estate community at The Plantation at Ponte Vedra as the keynote speaker for the Ponte Vedra Council’s quarterly meeting.
The Council, one of several geographic groups of the Northeast Florida Association of Realtors intended to increase networking and communication, wanted to hear from an expert on the other side of an important industry issue, said Council Chair Terrell Newberry.
“I think realtors tend to perceive the world as half-full,” he said. “We felt like it’s an issue we felt we could learn about from April and gain a better understanding of what’s going on.”
The first part of Charney’s hour-long discussion focused on how the problem came to exist through inflated home values, varying and often deceptive investment instruments and lack of consumer credit literacy, among others.
Originating mortgage loans are bundled then converted to securities and exchange hands so many times that it’s difficult to know who actually holds the note, she said. That system has created a nameless, faceless entity trying to collect mortgage payments from customers it’s never seen or will never know.
“It’s a ponzi scheme,” said Charney. “The largest I’ve seen in my almost 52 years of life.”
Though she discussed the complex dynamics and parameters for close to an hour, there’s much more to be learned, she said, and enlisted each attendee to educate themselves and speak to their representatives to “stop the madness.”
“We need to be doing something about this,” said Charney.
She did lay some of the blame on the homebuyers who “had stars in their eyes” and bought more than they could knowingly afford, but added that consumer credit literacy at earlier ages could help future generations see through deceptive credit offerings and practices and to better live within their means.
The abundance of credit and availability to the masses from 2000-07 was a “drug and everyone was taking it” and the need for a new model of sustainability is needed, she said, including real estate.
She anticipated 6-10 million more foreclosures — including massive commercial property foreclosures — in the next two years as five-year interest rates on originating loans come to a head across the country. Still, she’s hopeful that advocates can “change these contracts” through education and working with financial parties to the benefit of everyone.
Not generally the type of message they receive at functions, Newberry said 75 percent of the attendees he talked to had positive comments and alluded to Charney’s message being something they needed to better understand.
“You have to expose yourself to both sides,” he said.
Charney will continue to hit the road and speak to groups, as she will meet with groups in St. Petersburg and Miami as well as another group in Jacksonville this year. Coming before the group of real estate industry professionals was an opportunity in itself.
“To me, it’s a great opportunity to give back to the community and speak to crowds I don’t normally get to see,” she said. “Here, it’s so much more of a grassroots (effort).”
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