Time Magazine reported a few months ago that the US real estate market hasn’t faced anything like this since the Great Depression of the 1930’s. A total of one in every 466 U.S. households received a foreclosure filing last month, according to the latest data from RealtyTrac. More than 1.5 M homeowners have lost their homes, and the numbers are increasing daily. Credit Suisse predicts that 13% of US homeowners with mortgages could end up losing their homes.

Are Filipino Americans affected as much as the rest of the country? Unfortunately, yes.

According to a study of the National Coalition of Asian Pacific American Community Development (NCAPACD), as much as 18-25% of Filipino Americans who have sub-prime mortgages nationwide are delinquent for 90 days or more and 7-11% are already into foreclosure.

Dennis G. Arguelles, Director of Community Economic Development of Search to Involve Pilipino Americans (SIPA) zeroed in on the FilAm community in LA. "In terms of whole numbers, it is safe to say that at least 8,000-10,000 Filipino homeowners in LA County have sub-prime mortgages. These homeowners had FICO scores averaging 645 and their loan amounts averaged $401,534. These numbers are all based on a study by the Federal Reserve looking at mortgage performance data for Zip Codes with substantial Asian American populations. Filipino data was then roughly correlated based on what percentage they were of the Asian population," explained Arguelles.

Perhaps a vivid example of a Filipino American victim of the foreclosure problem is June Reyno from San Diego. Last October, the ‘Support June Reyno’ media event organized by the Ad Hoc Campaign Against Eviction and Foreclosure showed June Reyno who had chained herself to her front porch in a dramatic display of resisting her coming eviction because of her home of almost 20 years being foreclosed. Reyno was urging the government to help the people by calling for a national moratorium on evictions from foreclosures. She linked her troubles with the other millions of homeowners in foreclosure circumstances; she called on elected officials and Congress to do something to allow those families to keep their homes. "I will not stop until Congress does something about this now," she exclaimed, "Now is the time for Americans to come together and hold hands."

Clearly action is needed to help homeowners facing the threat of losing their homes find some relief. Hopefully, help is on the way.

A few days ago, on February 18, President Barack Obama announced a $75 billion plan to help stop foreclosures. The Homeowner Stability Initiative (HSI) will help between 7-9 million homeowners avoid foreclosure by restructuring or refinancing their mortgage.

One component of the HIS will enable 4-5 million homeowners who are "upside down" in their mortgage to refinance. Since 2005, housing prices have fallen 25% so people who bought homes then have found their mortgage is worth more than the value of the home. Usually, banks won’t allow homeowners to refinance if the amount they owe on the mortgage is greater than 80% of the value of the home. The HIS will allow people whose mortgages are owned or guaranteed by Freddie Mac or Fannie Mae to refinance at today’s lower interest rates, reducing monthly payments.

A second component to Obama’s HIS will provide loan modifications by reducing monthly payments to 31% of the homeowner’s income. The lower interest rate will stay in effect for five years. The Treasury Department will pay $1,000 towards reducing the principal on the loan for each year (up to five years) that borrowers stay current on their payments.

Banks will receive incentives for participating. In addition, the government will create a $1.5 billion fund to help renters who are forced to relocate due to foreclosed homes. A $2 billion Neighborhood Stabilization Fund will be created to help neighborhoods that become distressed as a result of foreclosed homes.