Yet another solution for foreclosure prevention

July 27th, 2007 | Tags: Foreclosure

The rising foreclosure rates in the country have compelled experts to find a solution so as to tackle the problem. Several solutions are being put forth for preventing foreclosures and thus to reduce the impact of skyrocketing foreclosures in the county. In this respect the Patrick administration is trying to formulate a comprehensive plan for tackling the foreclosure crisis. As a part of its foreclosure prevention measures, the administration has drafted a plan in this respect

According to the draft of the plan mortgage lenders that foreclose on homeowners will have to pay them a certain sum of money, which would involve their moving expense, first and last months rent and administrative cost which the non profit agencies will have to incur for finding a new home for such foreclosure victims. In this respect the amount decided is $5,000.The draft further reveals that lenders will be asked to delay the foreclosure process as much as possible, reduce loan amount, waive penalties etc. Moreover they can work out a plan with the state where by vacant foreclosed properties would be transferred to first time homebuyers or non-profit agencies.

The formulation of such plan is a reflection of the administrations’ commitment to protecting homeowners and communities. The administration is trying out all ways and means to handle the foreclosure crisis by preventing as many foreclosures as possible. In this respect the administration has allocated a fund of $250 million, which would help in refinancing subprime borrowers.

Yet another step for preventing foreclosure was undertaken by the Massachusetts Senate. The Senate unanimously passed a bill aimed at preventing foreclosures and cracking down on mortgage fraud. If the bill gets the approval of the house, it will certainly help in curbing foreclosure and mortgage fraud. According to the bill person involved in a mortgage fraud is likely to get imprisonment for five years. Moreover the bill also aims to formulate procedures so as to avoid misleading and unreliable mortgage loan advertisements.

Although the administration has put forth various solutions for foreclosure prevention, how far will they be successful remains to be seen?

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