Providence, RI – January 6, 2010 – (RealEstateRama) — Homeowners facing foreclosure are often desperate for help, but don’t know where to turn.
Under a new law passed by the General Assembly over the governor’s veto yesterday, lenders will be required to provide them with information about free mortgage counseling before they can begin any foreclosure process.
The legislation is meant to ensure that at-risk homeowners have access to all the resources and information available to them to prevent foreclosure, according to its sponsors, Sen. Elizabeth A. Crowley of Central Falls and Rep. David A. Segal of Providence, whose hometowns respectively had the highest and third-highest foreclosure rates in southern New England in 2008.
“People who are on the brink of losing their homes need to be aware of any help that is available to them, and where to find it. It’s easy enough for banks to forward this information to them ahead of time, and doing so would be in the banks’ best interest, too, since preventing foreclosure means they will continue to receive mortgage payments from those mortgage holders,” said Representative Segal (D-Dist. 2, Providence, East Providence).
The legislation (2009-H 5492aa, 2009-S 1002A), which will take effect 60 days from passage, requires lenders to send a written notice in English and Spanish to mortgagors 45 days before initiating foreclosure to tell them that free Office of Housing and Urban Development-approved mortgage counseling is available to them, and give them a toll-free number and website where they can get information about such counseling available in Rhode Island.
According to a report by the Boston-based consulting firm the Warren Group, in 2008 there were 56.9 foreclosures for every 1,000 residential properties in Central Falls, and 45.8 in Providence. Statewide, the rate was 8.9, which was 35 percent higher than Massachusetts (6.6) and 64 percent higher than Connecticut (5.4).
“Our state, particularly in urban areas, is facing an epidemic of foreclosures that are ruining families’ lives, subjecting them to homelessness, poverty and countless dangers. People who are about to lose their homes desperately need all the information available to them to prevent foreclosure. No doubt there are many people who are not even aware that free counseling is available to them,” said Senator Crowley (D-Dist. 16, Central Falls, Cumberland, Pawtucket).
For more information, contact:
Meredyth R. Waterman, Publicist
State House Room 20
Providence, RI 02903
(401) 222-2457
