Boston Magazine's Article "Foreclose This!" Features BCC's SUN Initiative

Monday, November 7, 2011

Boston Community Capital’s foreclosure initiative was featured in the November issue of Boston Magazine.  Written by Catherine Elton, the article, “Foreclose This! Boston Homeowners Fight Back,” tells the story of homeowners who are fighting back against the banks in an effort to keep their homes.  Elton explains how Drusilla Francis was in danger of losing her home to foreclosure until the “sword-and-shield alliance” of City Life, Harvard Legal Aid Bureau, and Boston Community Capital stepped in to save her home.

Elton writes, “As it works with homeowners facing foreclosure, City Life examines their cases and occasionally decides to refer certain people to BCC, a 27-year-old nonprofit lender that provides grants to foster community development. If BCC then determines that the homeowner is a good credit risk, it will approach the mortgage holder and offer to buy the home in question at the current market price — typically less than the amount of the underlying loan, but higher than what the mortgage holder can expect to get for the property by foreclosing on it and selling it at auction. Banks are often gun-shy about cooperating with BCC, because they fear that everyone with a home will start demanding reduced mortgages. But if the mortgage holder and BCC can come to an agreement on price, the nonprofit buys it, then turns around and issues a new mortgage to the homeowner, allowing the family to permanently remain in the house.”