Resources Resources for Homeowners in Process of Foreclosure
March 3, 2009
What should I do as a tenant if I live in a foreclosed property?If you are a tenant living in a foreclosed property, you have important rights that you should be aware of.
Please visit www.mass.gov/foreclosure to download Tenants' Rights: What Tenants in Foreclosed
Properties Need to Know pamphlet. Additional resources include: Massachusetts Housing Consumer Education Centers 1-800-224-5124
Massachusetts Bar Association Lawyer Referral Program (617) 654-0400
Harvard Legal Aid (617) 495-4408
Cambridge and Somerville Legal Services (617) 603-2700
What should I do as a homeowner if I am facing foreclosure?
The first step for homeowners struggling to pay their mortgage is to contact their lender. Some lenders
have options available to help borrowers through financially difficult times. For homeowners with
adjustable rate mortgages, understanding the terms of their loan is a priority. Borrowers should know
when their rates can change, how high their interest rate can get, and what the resulting payment will be.
If homeowners are concerned that they will have trouble making their payments, they should contact their
lender's foreclosure prevention department immediately. For cases when a lender will not help or when a
homeowner is already late on their mortgage payment(s), the following is a list of foreclosure prevention
counseling services, which can assist in identifying reputable lenders and potential financial assistance
programs available to assist in foreclosure prevention.
The Commonwealth of Massachusetts
The Commonwealth of Massachusetts has created a central website of foreclosure resources
(www.massgov/foreclosure) which includes information for homeowners facing foreclosure, as well as
information on tenants' rights, foreclosure laws and regulation, new foreclosure legislations, and links to
counseling agencies and workshops.
Foreclosure Prevention Counseling
City of Cambridge
The City of Cambridge Community Development Department offers one-on-one counseling and can
answer questions for Cambridge individuals and households at risk of foreclosure. The City of Cambridge
also offers FTHB classes, credit workshops and counseling, and post-purchase workshops to ensure
successful homeownership. Please contact Antonia Finley at 617-349-4643 for more information about
programs and services for homeowners and homebuyers.
Homeowners Rehab, Inc./Cambridge Neighborhood Apartment Housing Services
HRI offers counseling and technical assistance to owners of one- to four-unit buildings at risk of
foreclosure. Contact Jennifer Jonassaint at (617) 868-4858.
Just-A-Start, Corp.
Just-A-Start offers counseling and technical assistance to owners of one- to four-unit buildings at risk of
foreclosure. Contact Alan LaBella or Joe Youngworth at (617) 494-0444.
Sustainable Homeownership Center
The Sustainable Homeownership Center provides homeownership and mortgage counseling and works
with lenders to develop strategies to affordably sustain homeownership. Call (800)-224-5124.
Financial Assistance Programs
Second Chance Program
Through their Home Improvement Programs (HIP), Just-A-Start Corporation (JAS) and Homeowner's
Rehab (HRI) administer the Second Chance Program, a program supported by Cambridge Savings Bank
for individuals who may not qualify for a loan to re-finance their home under normal guidelines.
Applications are accepted at all times. Applicants must have a 1-2 unit owner-occupied residential
property in Cambridge and must have income at or below 120% of the area median income (for income
guidelines, go to: http://www.cambridgema.gov/cdd/hsg/hsg_inclimits.html).
This program provides loans between $10,000 and $250,000. The loan can go towards consolidation of
first and second mortgages, credit card debt, medical bills, legal bills or real estate taxes in arrears.
Program Contacts at Just-A-Start:
Joe Youngworth
(
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Alan LaBella (
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617-494-0444
Program Contact at HRI:
Jennifer Jonassaint
(
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617-868-4868
MassHousing's Home Saver Program
MassHousing, Fannie Mae, NeighborWorks America and a coalition of housing counseling agencies have
formed a new loan program to help prevent Massachusetts homeowners from losing their homes through
foreclosure.
Homeowners interested in this program must demonstrate:
- That they were victimized by unfair or deceptive lending practices
- Are employed with verifiable income, and can afford the new monthly mortgage payment
- Have a minimum credit score of 560 for a single-family home or condominium, 580 for a 2-family home, or 620 for a 3- or 4-family home
- Meet income and loan limit restrictions
- Income limits apply. Loans are for low- and moderate income home owners
- Maximum loan limits are $417,000 (single-family/condominium); $533,850 (2-family); $645,850 (3-family); $801,950 (4-family)
at www/995hope.org/.
*Homeownership Prevention Foundation (HPF) provides free, independent, customized advice to
homeowners struggling with their mortgage payments. HPF is the first point of contact for inquiring
about funds through the MassHousing Foreclosure Rescue Program. Individuals should have the
following when calling: their monthly income, their monthly living expenses and the number of days that
they are behind on their payment.
Catholic Charities
Catholic Charities can assist with up to one month's mortgage payment. Funds are limited per calendar
year. Contact Tara Anderson at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Massachusetts Division of Banks
Homeowners feeling that they have been the victim of wrongful lending practices, contact the Division of
Banks at 1-800-495-2265 ext. 1501.
Other Resources
The Federal Reserve Bank of Boston
In an effort to assist homeowners facing foreclosure, the Federal Reserve Bank of Boston has developed a
new brochure, You May Be Paying Too Much For Your Mortgage, and a website www.theinformedhomebuyer.org.
The brochure is designed to help homeowners consider important questions and evaluate other mortgage
products, such as FHA loans, that could lower their monthly mortgage payments. The website is a
helpful information center homeowners can use to learn about foreclosure education resources,
foreclosure prevention counseling and collaborations such as the Mortgage Relief Fund that could help
some homeowners refinance into affordable fixed-rate mortgages.
MERS FOR HOMEOWNERS
MERS for Homeowners, www.mersinc.org/homeowners/ is an online resource designed to help
homeowners identify the mortgage company handling their mortgage loan. This section of the MERS
website is specifically designed to help consumers identify the mortgage company that handles their
mortgage loan through two vehicles: the web-based www.mers-servicerid.org/sis/ ERS® Servicer ID and
the phone-based MERS Servicer Identification System (888-679-6377). In addition, the site provides
information about the responsibilities of the mortgage company that services mortgage loans and what homeowners should know about the servicing process.
Before calling the Servicer Identification System or accessing MERS® Servicer ID online, homeowners
must have the following information ready: the mortgage loan's Mortgage Identification Number (MIN);
or the borrower's name and social security number; or the property address.
IRS - Tax Forgiveness on Debt Relief for Homeowners
Homeowners whose mortgage debt is partly or entirely forgiven through a modification or foreclosure in
2007, 2008 or 2009, can exclude the forgiven amount from their taxable income (previously, it was
treated as taxable income). The exclusion only applies to debt secured by the owner's residence; debt on
rental properties does not qualify. In the case of refinancing loans, the exclusion is limited to the amount
of the old mortgage principle just before the refinancing. The IRS has created a new form (Form 982)
that taxpayers must file to claim this relief. Because the law was only enacted recently, it is not included
in current tax preparation software. Details and the form are available online at
www.irs.gov/irs/article/0,,id=179073,00.html.
Website(s) with more information:
Freddie Mac's Don't Borrow Trouble -
http://www.dontborrowtrouble.com/
Legal Resources
Pro Bono Foreclosure Assistance Hotline
Individuals facing foreclosure may benefit from qualified legal counsel to represent them in foreclosure
proceedings. The Attorney General's Office, in partnership with several bar associations, legal services
organizations and advocacy groups, announced the establishment of a Pro Bono Foreclosure Assistance
Hotline. Low-income Massachusetts residents who are facing foreclosure may call (800) 342-5297 or
(617) 603-1700 and leave a message in the foreclosure assistance mail box. Income limits apply.
Cambridge and Somerville Legal Services
Cambridge and Somerville Legal Services offers legal assistance to individuals and families who are
homeless or at risk of becoming homeless and groups that represent tenants in substandard housing and
the homeless.
