The Springfield Republican Features BCC’s SUN Initiative in “Massachusetts foreclosure-prevention law may help Springfield.”

Monday, October 8, 2012

Boston Community Capital’s SUN Initiative was featured in The Springfield Republican article, “Massachusetts foreclosure-prevention law may help Springfield.”  The article, written by Reporter Jim Kinney, discusses how the new “state foreclosure prevention law that takes effect next month is expected to help keep defaulting homeowners in their homes, provided they can still offer their lenders more value than the home would sell for after a foreclosure.”  Kinney continues:

“One of the law’s requirements is that lenders look at the net present value condition, Anthony said. What that means is the lender must figure out what the house would be worth sold as a distressed, bank-owned property and how much it would cost them to foreclose on the home. If the homeowner can beat that net present value, the lender has to take the modification and let the homeowner keep the home.”

“The law also requires lenders to accept offers from non-profits who buy homes that are in arrears at short sales, that is for less than what is owed on them, and then resell those homes at the current market price back to the original homeowner with a 30-year fixed-rate mortgage provided by the nonprofit. “

“One such group, Boston Community Capital, has done 16 such short-sale deals in Western Massachusetts, said Elyse Cherry, Boston Community Capital’s CEO.”

Read the article here.