I hope you all had a great
Thanksgiving, despite the news that Rhode Island's foreclosure rate during the second quarter of this year was the highest in New England, there is still a lot to be thankful for. In order to provide more resources and options to the thousands of people in crisis,
Rhode Island Housing recently opened a help center to expand
counseling services and is now offering a new loan product to Rhode Island that may help borrowers who are unable to pay their mortgages. This week we had Richard Godfrey, the Executive Director at RI housing on to talk about these programs. My friend and past guest
Nicolas P. Retsinas, director of
Harvard University's Joint Center for Housing Studies said "I give credit to Rhode Island Housing for not standing on the sidelines and wishing this problem will go away. The market will correct, but there will be collateral damage literally to thousands of homeowners. This is one small step." The Rhode Island Housing Help Center’s counselors are encouraging people who are having financial difficulties to contact the Center or their lender at the first signs that they might be in trouble. Counselors will assess each client’s situation and provide advice and education to help them:
1: Avoid losing their home or strategize to help cope with the loss of their home. 2: Make sense of their existing mortgage. 3: Make safe, informed decisions about finding an affordable rent or mortgage.
The counselors will also screen borrowers who may be eligible for “home saver loans”. The loans will enable eligible homeowners to refinance up to 100 percent of their houses value at more favorable terms than what is generally available through private sector lenders. “We don’t want to create false expectations”, Godfrey said. We’re guessing 1 in 10 people who call for help will qualify. The “Home Saver Loans” will offer:
1: Up to $374,000 for single-family houses and condos. 2: Up to $400,000 for two-family houses. 3: Secondary loans for up to 10 percent of the house’s value to cover closing costs.
To be eligible to apply, borrowers must live in the houses they own and meet the federal Government’s definition of low to moderate income. The eligibility criteria would probably exclude homeowners who have significant debt beyond their mortgage or whose current mortgage exceeds the value of their house.
This Weeks Real Estate Insight: Rhode Island Housing has been providing low-cost mortgages to first-time buyers since 1973.
The Warren Group, ranked Rhode Island Housing as the State's third-highest lender for house-purchase loans. During the first nine months of this year, the agency originated 388 of the 8,380 such loans made in the state.
