Boston Fed's foreclosure fanfare
Gillette Stadium in Foxborough.
The Federal Reserve Bank of Boston is rolling out all the stops tomorrow to help homeowners who may be facing foreclosure, and the organization is teaming up with an unusual partner for the event – the New England Patriots.
Homeowners from around New England who are struggling with mortgage payments will have the chance to work out their problems with lenders from 1 to 8 p.m. at a free foreclosure prevention workshop being held at Gillette Stadium in Foxborough.
Sponsored by the Boston Fed and the New England Patriots Charitable Foundation, the workshop will include 20 mortgage servicers and 80 of their representatives. In addition, 50 housing counselors from nonprofit and government agencies will be there to offer advice.
Boston Fed president Eric Rosengren is urging troubled borrowers to take action before it's too late. The goal for tomorrow’s workshop, Rosengren said, is for participants to "negotiate a situation that is manageable for borrowers and financially responsible for the servicer.''
As the foreclosure problem has unfolded across the country, some delinquent homeowners and housing advocates have complained it’s difficult to get lender representatives to speak with them on the phone. So perhaps this event will make it easier for some homeowners to talk with their lenders. (Among the lenders scheduled to be represented: Bank of America, Chase, Citigroup, Countrywide Home Loads, Washington Mutual, and Wells Fargo & Co.)
But time will tell.
This is the second attempt by the Fed office to directly help struggling homeowners. Another effort last year encouraged borrowers to contact a list of lenders willing to consider refinancing. That drew 1,300 responses and resulted in 19 refinancings, according to a July 18 story by Globe reporter Kimberly Blanton. Key to a success at such an event, however, is making sure homeowners bring relevant mortgage papers and documentation, one mortgage counselor said in that story.
With foreclosures at record levels in New England, the Boston Fed has aggressively promoted tomorrow’s event, including sending thousands of letters targeted at neighborhoods with high foreclosure rates.
In addition, Rosengren said, the MBTA will offer free rides on commuter rail for those traveling to the workshop. Take the Stoughton/Providence line from South Station and get off at Mansfield, where a shuttle bus will run between the train station and Gillette Stadium. To get the free fare, participants can either show loan documents or print a postcard from www.theinformedhomebuyer.org, Rosengren said. For those who drive, parking is free.
As for the somewhat unusual pairing of the Boston Fed with an NFL franchise, the Patriots' chairman and CEO explained the organization's involvement to Globe reporter Robert Gavin.
"The credit squeeze going on now is doing so much harm to very good people,'' Robert Kraft said. “We're offering the stadium so we can hopefully, in a small way, help people remain in their homes.''
So how do you think this event will turn out? And what are your thoughts on the Boston Fed’s foreclosure prevention efforts?
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wonder if kraft is going to charge $40 for people to park there?
Really, it's a tragedy that in this time of financial crisis the nation is led by such clueless institutions.
How is a lender supposed to modify loans that should never have been made? Many of these borrowers will never have enough income to pay back what they owe. And many of their houses are no longer worth enough to secure the loans as collateral.
This isn't a workout plan. It's just a bad halftime show.
How about lenders offering mortgage deals to first time home buyers with good credit and a down payment in the bank? Cut the interest rate in half for home buyers with 10% down? Cut the rate in half for buyers with credit scores over 700?
These are the people that lenders and mortgage companies should be looking to help - the people who have been smart enough not to buy more than they can afford. The people who have been smart about saving money for a down payment for a house, people who have sacrificed for years trying to save as much as they possibly can. The first time home buyers who have been locked out of the market for the past 5 years. Let's cut them some slack once and a while.
It won't happen because the mortgage lenders, sellers, and real estate agents are all about greed. We've actually lost out on purchasing houses because the selling agent didn't want to split a commission with our buyer's agent. I've seen houses go into foreclosure because the seller is holding out for even a little higher offer. I've even had real estate agents purposely create bidding wars trying to get offers to climb higher and higher by telling the interested buyers what the other offers are on the table (which I believe is actually illegal, but I do not know for certain, it is just what I was told).
It's sad.
I feel for the people who through no fault of their own are in jeopardy of losing their homes - sickness, layoffs, deaths, fixed incomes, higher taxes, seniors, etc. These people should get some relief.
But, I'm sorry, people who over extended themselves and continued to buy high end cars and electronics, people who signed onto an ARM mortgage knowing that they couldn't afford the reset, people who were just foolish with their money - they should not be getting foreclosure relief. If a person invests poorly in the stock market and starts losing all their money, does the government swoop in to save them? No. Then why is that happening in housing?
Ok, call me a cynic but I think this is just a big dog and pony show. I have dealt with these banks for the past two years and they don't have the manpower or wherewithal to make any type of dent into this mess. I'm sure Bob Kraft had good intentions but I have a feeling that this is being driven by the politicians in order for them to get another sound bite out.
I simply could not agree more with TWBG's comments.
Further, yes there are a percentage of people out there that were taken advantage of by so-called predatory lending practices, but there is a very large percentage of people out there that knew what the risks were and simply chose to believe nothing bad would happen to them and bought twice the house they could afford.
The old adage holds, if it seems too good to be true, it probably is.
There should be no government bail out in these instances, none. Banks are welcome to try to recapture whatever they can, but it looks like they're getting their comeuppance too.
Since most of the foreclosures are happening in less than prominent places (not like the foxboro area), you'd think they would have this held in the city or closer to the city where people can have easier commuter options rather than driving!
I went to this event today and found many people leaving more asurred they can work thigns out with their banks or mortgage company. Also there were helpful presentations from very qualified finance people about what people can do to improve their credit, work with banks and credit card people and get their finances in order. ALthough I personally am facing foreclosure - due to a personal crisi in my life- the bank was very helpful and is working with me to find make a deal to settle . Granted it wastn in Boston, but it sure was accessable to highways and easy parking. Try to find larking for 1000 people near Boston.
Thanks Bank of America nd the lending institutions. Rickie Lee
I also went to this event. When I got there at 6pm I was turned away. They said there were too many people waiting to talk to mortgage companies. I was also told that most people already in the event had been waiting since 2pm to sit down with these companies. This event started at 1pm. So if you were not there within the first hour you were out of luck. So I filled out a form they gave to me and I was told my company would contact me within 3 business days. I only drove from Boston so it was a big deal. I can only imagine what it was like to drive a couple of hours to this event just to get turned away.
To top it all off there were several people in the parking lot passing out fliers for a several companies that purchase distressed homes. Talk about bottom feeders. Idon't know
2,176 people attended who are having trouble with their mortgages. Any doubt that the market will continue to go down in MA?
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