Although the United States has seen an increase in economic stability, Connecticut continues to be among the top five states with the most foreclosures. According to a study conducted by Attom Data Solutions, 8 Connecticut homes are being foreclosed for every 1,000. The information used to analyze the foreclosure ratings among the states was based on foreclosure filings listed in the public records of over 2, 500 national counties.
Making a change to local communities facing foreclosure
Organizations such as Boston Community Capital are attempting to alleviate the surge of state foreclosures by helping families who are at risk for losing their home. The goal is to intervene between families defaulting on their mortgages and automatically having to seek foreclosure. Many families in urban areas are in a tight financial position. Their homes are no longer worth what is currently owed to the lender.
The intervention takes place when Boston Community Capital purchases the home from the lending bank for what it is currently worth in the housing market. After this is complete, the organization resumes to sell the home back to the family with more flexible conditions than the previous lender had mandated.
How the original lender benefits
The original lender is more apt to comply with this deal since they will no longer have the task of taking over a property and trying to re-sell it, which is usually a long and complicated process. Also, the lender avoids having to minimize the principal worth of a property through a loan modification. The original lender is no longer responsible for managing the defaulted home when the buyer can no longer afford the home.
Despite the hard circumstances that have led to a family facing foreclosure, it is encouraging to see there are community organizations and legal resources available to help families in a crisis. Foreclosure does not have to be a death sentence for your dignity. With adequate assistance and guidance, positive outcomes can result for a more financially stable future.
Do you know of other organizations trying to help families overcome foreclosure?