Massachusetts to Provide $2 Million in Foreclosure Prevention Funds

Massachusetts has set aside $2 million to help homeowners at risk avoid foreclosure and default through education and counseling at centers throughout the state. The efforts generated by the money will focus on areas hardest hit by the foreclosure crisis, and attempt to provide assistance by teaching homeowners about options like refinancing, selling or working with a lender to avoid a foreclosure. Roughly $1.5 million of the total grant money was obtained through the collection of license fees from loan originators.

Governor Deval Patrick has stressed the threat of foreclosure a lot lately, and recently considered a two month moratorium on foreclosure proceedings in order to allow homeowners to catch upon their mortgage payments and plan to take care of their debts without the threat of impending foreclosure proceedings. He also passed a bill requiring first-time buyers receive counseling from lenders when buying a sub prime adjustable rate mortgage.

Massachusetts could use the help, as last year over 31,000 properties went into prolonged default at some point, a figure that was up nearly 50% over 2006.

The Massachusetts beach community of Cape Cod along the Atlantic Ocean got some much needed assistance this week from state organizations to help fight their rising level of foreclosures, which are especially high in Barnstable County.

The Housing Assistance Corporation recently received $300,000 through a federal grant to assist homeowners on the Cape facing foreclosure. The money will be used to build 10 new foreclosure resource help centers across the state designed to educate homeowners and provide them with the counseling they need to help avoid foreclosure.

Since last summer, more than 500 homes have been foreclosed on in Barnstable County. Many of them have been blamed on predatory lending schemes, while others have been linked to people who bought homes at the height of the real estate boom for inflated values. Now that their values have fallen, homeowners who are unable to keep up with payments are unable to sell off the properties for their original loan value, and therefore foreclosure becomes imminent.

The new prevention centers will work to lower Massachusetts foreclosures by teaching people how to refinance their homes or work with lenders to make up back payments and stay on top of their finances.

Find information about:

• Worcester Foreclosure Homes
• Boston Foreclosure Homes

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