Avoid
Foreclosure by Acting Now
A grave issue which has dominated
headlines in recent months is the current housing and foreclosure crisis.
Honest and hardworking people find themselves at risk of losing their homes
because they cannot pay their mortgages. As your State Senator, I want to
reassure you that there may be avenues to provide assistance if your family
is facing the possibility of losing your home.
Several large banks in New England, with the support of the Federal Reserve
Bank of Boston, have teamed up to create the Mortgage Relief Fund, a $125
million endowment designed to help struggling homeowners refinance into
fixed-rate loans that will hopefully assist in avoiding foreclosure.
This fund is not designed to bail out owners who are delinquent on their
mortgage payments, but for those homeowners struggling each month to make
payments. If the value of your home exceeds your total mortgage loan
balances, and have been timely with monthly payments, then you may be
eligible for consideration under this new initiative. You can find out more
information about this program at
www.MortgageReliefFund.com.
Even if you do not qualify for this initiative, help may still be available.
Mortgage rates and terms vary greatly among lenders. If your current rate
puts you in danger of foreclosure, other lenders may be able to help you
refinance into a different loan, potentially saving thousands of dollars
each year. Talk to a responsible lender about refinancing into a different,
more-affordable loan, perhaps a Federal Housing Authority loan or a
state-guaranteed loan. If you are unable to locate refinancing, you should
consult the Homeownership Preservation Foundation at www.995hope.org or
888-995-HOPE (4673).
Regardless of whether you qualify for the Mortgage Relief Fund or are
seeking a different solution, now is the time to act. Many homeowners run
into the problem of foreclosure because they wait until the situation is
dire and often irreparable before they take action. By preemptively working
to avoid this scenario, you may be able to take advantage of programs
possible in the future.
I appreciate the Federal Reserve Bank of Boston for working to bring
together Bank of America, Citizen’s Bank, TD Banknorth, Sovereign Bank, and
Webster Bank to help people navigate their way through this difficult
economic time.