Derrick and Myra Robertson with grandchildren, Jamar and Jamirah

Robertsons Successfully Fight Foreclosure to Stay in Family Home

Derrick Robertson’s eyes fill with tears as he recalls how he and his wife, Myra, nearly lost their home to foreclosure eight years ago. “It’s still painful,’’ Robertson said. “It was a devastating experience.’’ Thanks to legal services agency Public Counsel, the Robertsons were able to celebrate their 34th wedding anniversary in February 2008 in the South Los Angeles home they’ve lived in for 23 years.

Having been together since they were high school sweethearts at Manual Arts Senior High School in South L.A., the Robertsons have two children and three grandchildren. In 1984, they bought their three-bedroom house for $80,000. Their monthly mortgage was $800. Myra, a mail carrier for 18 years, fell and hurt her back on the job. She went on workers’ compensation.

In 2000, a series of events caused them to nearly lose their home. After receiving workers’ compensation payments for several years, Myra was unprepared when her benefits ended. By that time, they had refinanced twice to make home repairs. As a security guard, Derrick’s monthly salary of $1,000 wasn’t enough to cover their $1,079 mortgage payment and household expenses.

With bills piling up, the Robertsons thought they found an answer to their problems when an acquaintance named Larry, whom they knew for several years, offered to help. Larry, who said he was a real estate broker for 30 years, assured them he could refinance the loan at a lower fixed interest rate so they could get cash out and a lower monthly payment. “He made a lot of promises,’’ said Derrick, 53. They signed the loan documents but Larry refused to give them copies. The Robertson's loan turned out to be an adjustable, high-interest loan with payments that soared to $1,745 a month. “We about had a stroke,’’ said Myra, 52. “We tried to pay the house note, but everything else fell behind.’’ Meanwhile Larry disappeared.

Derrick and Myra Robertson

With the help of a paralegal, the Robertsons tried to stop the foreclosure. Their efforts delayed it for a short time. Then they started getting mail every day from people who claimed they could help them out of foreclosure, or wanted to buy their house. “We were walking on egg shells,’’ Derrick said. “We were scared to answer the phone. People we didn’t know were taking pictures of the house.’’

Fortunately, they were temporarily able to move into a smaller back house, while renting out the front house. Two days before they were due in court, Public Counsel called. Public Counsel had heard about the Robertsons' case from a housing counselor. The agency immediately informed the court that it was representing the couple. A sobbing Derrick asked for a one-week extension, saying, “Judge, we are fighting for our house.’’ The judge gave them a one-month extension.

With Public Counsel’s help, the Robertsons sued all the companies and individuals involved. The case went to mediation and their loan was rescinded and restructured in 2003. Myra took disability retirement and volunteers as an alumni liaison for her former high school. Derrick is a supervisor for a vending service company. Now they make sure they don’t sign any important documents without first getting advice. Said Derrick: “We hope our experience will help others who are going through the same thing get the help they need.’’

Last year, Public Counsel received 100 phone calls a week from distressed homeowners like the Robertsons facing foreclosure, double what it normally gets. The most common problem: a lack of understanding of one’s mortgage. “There are a lot of new types of mortgages out there,’’ said Hernán Vera, president and CEO of Public Counsel, which recently received a $200,000 grant from the California Community Foundation. “People really need to understand how their payments are going to change. If you don’t have a clear understanding of your terms, go to a housing counselor or to the Department of Consumer Affairs.’’

Grantee: Public Counsel Awarded: March 2008 Grant: $200,000 Grant Purpose: Two-year capacity-building support Founded: 1970 Description: Public Counsel is the country’s largest pro bono legal organization serving Los Angeles County. It provides free legal and social services in seven areas: consumer law, homelessness prevention, community development, early care and education, immigrants’ rights, children’s rights and appellate rights. Staff: 33 Foreclosures: Four full-time attorneys who provide legal counsel, advice and representation to at least 1,000 low-income people with mortgage fraud, default, Chapter 7 bankruptcy or foreclosure issues per year.

View other stories in Solutions, the foundation's latest journal.

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