Activists of Massachusetts Lobby in Washington for Federal Funds to Stall Foreclosures
Activists of Massachusetts marching to Washington lobbied for federal funds to stall foreclosures. They demanded a share of $1 billion earmarked to help the house owners at risk from foreclosures. This scheme was part of a multi forked attempt by Washington to tackle the foreclosure problem. The money from Emergency Homeowners Loan Program would give interest free loans to house owners who were either unemployed or underemployed and were having difficulties in meeting their mortgage commitments.
A limit of $50,000 would be available for eligible borrowers who would apply to meet their mortgage expenses for two years.
Lew Finfer of Massachusetts Communities Action Network said that they were trying to avail of a bigger portion of the funds. He had calculated that 60,000 households could be helped with $1 billion. He said, “The part that’s daunting is that the number of people who are eligible is probably well over million”.
Activists like Finfer together with Brockton Interfaith Community members talked with the senior advisor (mortgage finance) to Secretary of HUD, Bill Apgar. They explained that the money should be dispersed by HUD to those towns and cities with the highest numbers of foreclosures and unemployment so as to benefit the greatest number of eligible victims.
As yet HUD is undecided regarding method of allocation of funds by the fall this year. Melanie Roussell speaking on behalf of HUD said that in all probability the money would be given to non-profit organizations and agencies of the states. It has not yet been finalized as to which of the states would be marked for this benefit. She said, “I can’t say that anybody is guaranteed at this time”.
In the recently financial reform bill initiated by Rep Barney Frank (Democrat/Newton) that was passed, this programme of Emergency Homeowners Loan was included. On behalf of Frank, Harry Gural said that some of the legislators belonging to the conservatives “felt queasy” during the debate in the congress regarding the short-term loan. They apprehended that the money would go to irresponsible borrowers for walking into houses that were well beyond their incomes.
The programme’s final version restricted the help to the unemployed or underemployed borrowers facing foreclosures. This programme makes complete an effort by the Treasury involving $2 billion to help those states that have been worst hit by the foreclosure mayhem. The money would be given to those states having an unemployment rate above the average. Seventeen states have received the funds including Arizona, California and Nevada.
One would think that with all of the heavier foreclosure issues affecting states like Arizona, Florida, and California, that the bulk of said funds would go towards those states, and trickle down based upon the foreclosure rate and the amount of value lost in the homes, taking into account the actual unemployment rate in those areas, not the ‘recorded’ rates.
It is unfortunate only $1B was set aside to help soooo many folks who are at risk for losing their house. And it is very admirable that the residents of Massachusetts to stand up and voice their opinions.
A very interesting story. Thank you for reporting this, as this definitely did not make national news.