Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-08-03

tCOnUlr leo fTOIIl EISL ! dsCF'
year or two" said Mr.. Fahey. ut is
impossible to make any intelligent
estimate as to the number of homes
we will have to sell or rent, but 1t Is
inevitable that some thousands OF
homes must be acquired by the cor
poration in the normal course OF its
business.
Acquisition of properties by the
Corporation cannot be prevented, in
spite of the convenient terms on which
these loans are made and the Cor
poration's purpose to give worthy bor-
rowers who are in temporary trouble
every possible assistance. Those Dor
rowers will not be unduly harassed
nor asked to do the impossible but,
under the law. the Corporation must
collect the money due from borrowers
who are able to pay.
Make Payments Regularly.
"The vast majority of borrowers are
making their payments regularly and
are in no danger of foreclosure, but
the very fact that the Corporation has
become the largest real estate lend
ing organization in the world means
that it will have more properties to
dispose of than any other single mort
gage lending institution. The Cor
poration now holds mortgages on more
than $4,000 urban homes. Soon 1t
will have over a million. This is more
than all the owner-occupied houses
in our three largest cities, New York,
Chicago and Philadelphia, combined.
Out of so large a number some
thousands are inevitably represented
by people who prove irresponsible, and
who do not respect their obligations.
Even in normal times the large lend
ing institutions have to deal with
thousands of pieces Of property on
which they are obliged to foreclose
In the course of year. The Home
Owners Loan Corp. cannot expect to
escape similar experiences.
Values Are Rising.
The corporation should encounter
no serious problem in dealing with
such homes as it is forced to take
over from delinquent borrowers. In
nearly every section of the country
real estate values are rising. There
is already a growing demand for
properties which carry the liberal type
of mortgage made by the corpora
ton. We are finding that the houses
on which We have made loans COM
mand a more ready sale than those
of corresponding value which 90 moi
have the same advantage Of the long
term amortiZed mortgage.
The corporation does not propose
to dump hastily on the market the
homes which it is obliged to take
over 1t would be short sighted pol.
icy to stimulate new depression Of
real estate values by indulging in g
forced sale of properties. If such
a policy were followed. not only
would the corporation suffer unneces.
sary losses. but it would likewise de.
press the value of other homes.
Every home owner who has a loar
from the Home Owners Loan Corp
has been helped out Of a difficult
situation which threatened him with
foreclosure. Each loan made by the
corporation is a long-term mortgage
bearing interest at a very low rate
enabling the family to come into
debt-free home ownership through
small payments. actually lower thar
rent in most cases, and averaging
less than S24 each month.
THE s2,700,o00,0 600 of loans al.
ready made by the corporation rep
resents over one-seventh of the es
timated urban home-loan debt IL
the United States. Some S3,000,000
900 of bonds of the corporation vii
shortly be outstanding as a con
tingent liability of the United State
Government. If funds for paymen
of these bonds are not collected from
the H. o. L. c. borrowers the burden
would be thrown upon the entir'
public in the form of taxes. Thi
fact is secondary in the H. o. L. c
collection policy only to the neces
sity of relieving actual distress.
500 Foreclosures Listed.
"The corporation has taken fore
closure proceedings against some 30
properties. representing, after ali. onl
one out of every l 100 H. o. L. c. Dor
rowers. This is insignificant con
trasted with the 10000 urban hom
foreclosures by private lending institu
tons in the first five months of 1885
according to reports that cover onl,
one-third of the countrys population
Moreover, nearly all of the 885 900 H
o. L. c. borrowers faced foreclosure be
fore the H. o. L. G. came to their as
sistance, and most of them are nov
able to keep their homes as a result
Of its efforts.
THE corporation in cases of con
tinued genuine distress has permitted
borrowers temporarily to postpone, a
least, part of their payments. Fore