Individual Advice For Foreclosure Victims

April 2nd, 2008 · No Comments

The story of Carol Anderson is just one among the many. She has spent the entire winter without heat or cold water because the payments of her mortgage have sky rocketed by $5,000 per month. How can she pay the gas bill? Fortunately she attended a workshop organized by Thomas Menino, the Mayor of Boston. Among the participants were five mortgage houses who had face to face talks with the clients about loan modification. Also on the agenda were classes for those who wanted to own houses and know about credit ratings. These and other financial topics were there in addition to the all important issue of preventing foreclosures. The seminar was held on the premises of a school and organized by Department of Neighbourhood Development. It had started a related initiative from 2005 – the time when they first noticed that foreclosures were creeping in.

In Boston foreclosures went up by 169% in 2007 as compared to 2006. Most of these are intense in Dorchester, Roxbury and Mattapan – all being low income localities. The lenders tracked down the at-risk borrowers in Boston and contacted them over mail informing about the workshop. The letters were received by 1,500 borrowers. It was the first workshop of its kind in the city.

Another victim of rampant foreclosures is Sophia Mitte of Mattapan. She spent more than half a year trying to work out a modification with Wells Fargo but to no avail. Her son had to drop college to join the navy. She could not afford his education. Further she is burdened with costs for experimental cancer drugs. Her top priority is to save the house that has been her home for the last 13 years. With three children she has nowhere else to go. In this particular workshop she got a more positive response from one of the representatives of Wells Fargo saying that they were willing to give her some relief that would be mutually beneficial.

Spokespersons for Washington Mutual and Countrywide, two of the giant mortgage companies, said that are participating in these seminars. With the support of the federal government they are hopeful that foreclosure numbers will be reduced. The personal touch seems to be paying dividends.

Another hopeful borrower is Yuderka de la Cruz from Hydepark. Her interest rates are set to rise by 3.9% from August. She is optimistic that things will be ironed out to make if affordable for her to stay on in the house.