Warwick, R.I. – February 18, 2009 – (RealEstateRama) – Congressman Jim Langevin (D-RI) sent a letter today to Rhode Island mortgage lenders urging them to suspend new foreclosure initiations against the state’s homeowners while the Obama Administration and Congress finalize their plan to stem the foreclosure crisis.
“I strongly believe that action must be taken to temporarily suspend and prevent foreclosures so that our state and our country’s economy can begin to recover,” said Langevin. “In appealing to our state’s lenders, I am hopeful that this temporary suspension will ease the burdens and pressures that these foreclosures place on families and neighborhoods.”
According to the Mortgage Bankers Association, Rhode Island ranks tenth in the nation for foreclosures. President Obama today announced a $75 billion foreclosure prevention program that includes a home loan modification program to help at-risk borrowers refinance into viable mortgages. The Homeowner Affordability and Stability Plan will allow troubled homeowners to refinance at lower mortgage rates and includes incentives for lenders to modify troubled loans. In the coming weeks, Congress will take these measures into consideration and will work to pass legislation that helps homeowners, clarifies the loan modification process for lenders, and addresses persistent problems in the housing market.
Langevin, in his letter, commended the mortgage lenders that have voluntarily suspended foreclosures on owner-occupied homes. “We all must do what we can to keep Rhode Island families in their homes and bring financial stability to our state,” continued Langevin.
