Mass. Gov. Wants Help For Homeowners In Crisis

BOSTON - Massachusetts Gov. Deval Patrick has directed Commissioner of Banks Steven L. Antonakes to seek delays from mortgage lenders, on a case-by-case basis, for any Massachusetts homeowner who has filed a complaint with the Division of Banks as part of their consumer assistance outreach efforts. The governor issued a statement saying the action is aimed at providing relief to people who find themselves in the later stages of a personal financial crisis. "All we seek is for individuals and families to have a little time to work with lenders and non-profits toward a solution that might just save their homes," the governor said. Attorney General Martha Coakley said she is concerned over the effect of subprime loans on homeowners, as well.

The Division of Banks has also been instructed to review complaints and refer homeowners to reputable homeownership counseling firms, with the governor asking lenders to use this forbearance period to work in good faith with homeowners who are struggling to make their mortgage payments. The governor acknowledged a solution may not be available in all circumstances, but did ask mortgage lenders to consider modifying the terms of their loans to assist borrowers to move from adjustable rate mortgages into fixed rate loans.

"These measures and other recently announced initiatives that will be featured in forthcoming legislation are designed to ensure that additional homeowners do not find themselves in the same predicament that too many of their fellow homeowners do now," the governor said.