Governor proposes a new proposal
The governor has proposed that lenders kick in $5,000 toward foreclosed borrowers’ moving expenses and rent.
Wait, what?
Patrick’s program for neighborhoods in Boston, Brockton, Lawrence, New Bedford, Springfield and Worcester involves reclaiming pre-foreclosure and foreclosed homes and selling them to first-time homebuyers.
Patrick also asks lenders to provide “transition resources” for people who lose their home to foreclosure after failing to keep up with monthly payments. The assistance would include paying first and last month’s rent and moving expenses, with the remainder going to nonprofit counseling agencies that help them.
That is almost comic enough to be tragic (or vice versa?).
It is a ridiculous idea, as the governor has found out. Only two lenders have come on-board to support the proposal.
Lenders’ responsibilities end with the loans.
Source: Lenders slow to support Patrick’s anti-foreclosure plan - Associated Press by way of The Boston Herald