The Rhode Island House of Representatives passed legislation requiring banks to negotiate with homeowners before foreclosing last week. A similar bill is pending in the Senate. The proposal would require banks to work with homeowners to try and come up with an agreement to modify the mortgage. If the homeowner violates the agreement, or an agreement can’t be reached, the lender may move ahead and foreclosure. 
Some Rhode Island cities and towns have already adopted similar mortgage conciliation programs, including Cranston, Providence, Warren and Warwick, but past attempts to create a statewide requirement have failed in the legislature. Attorney General Peter Kilmartin worked closely with The Rhode Island Mortgage Bankers Association and the judiciary committee to draft the proposed legislation. Lenders do not like to foreclose, it is always better to negotiate with borrowers, especially when the situation might be temporary. Steve Tetzner has been in on this issue from the beginning and said “It will help homeowners…neighborhoods and lenders, it is a good bill.” RIMBA supports the bill because it is costly and time consuming to have to deal with 39 different ordinances, uniform statewide guidelines will benefit everyone. This Week’s Real Estate Insight: If you are having difficulty making your mortgage payments, one of the most important things you can do is be proactive. Review the terms and conditions of your mortgage, learn about the foreclosure process in your state and what may lead up to it, and find out more about the resources on a local, state and national level available to assist you in working with your lender and your finances.
Some Rhode Island cities and towns have already adopted similar mortgage conciliation programs, including Cranston, Providence, Warren and Warwick, but past attempts to create a statewide requirement have failed in the legislature. Attorney General Peter Kilmartin worked closely with The Rhode Island Mortgage Bankers Association and the judiciary committee to draft the proposed legislation. Lenders do not like to foreclose, it is always better to negotiate with borrowers, especially when the situation might be temporary. Steve Tetzner has been in on this issue from the beginning and said “It will help homeowners…neighborhoods and lenders, it is a good bill.” RIMBA supports the bill because it is costly and time consuming to have to deal with 39 different ordinances, uniform statewide guidelines will benefit everyone. This Week’s Real Estate Insight: If you are having difficulty making your mortgage payments, one of the most important things you can do is be proactive. Review the terms and conditions of your mortgage, learn about the foreclosure process in your state and what may lead up to it, and find out more about the resources on a local, state and national level available to assist you in working with your lender and your finances.
