The Patrick Administration is exploring a massive, state-backed bailout of homeowners saddled with risky subprime mortgages as foreclosure rates go through the roof, according to executives briefed on the plans.
Administration officials are exploring plans to create a loan pool for struggling homeowners, who would be offered fixed-rate mortgages at market or below-market rates, according to Thomas Callahan, head of the Massachusetts Affordable Housing Alliance, who has had discussions with MassHousing, a quasi-state authority, about the plan.
You know, I may not be an expert on this, but I know enough to wonder a couple things:
* Isn’t it a bit soon to start talking about dollar amounts and bailouts, considering the subprime lending issue hasn’t even been an issue for more than several months?
* Shouldn’t the state government wait to see what the federal government offers up in way of cash, assistance, etc.?
* MassHousing is going to help administer this project – wait, aren’t they the same organization that loaned money to these subprime borrowers, to begin with?
* Who are the people who are at risk of foreclosure? The Boston newspapers keep talking about “predatory loans”, but a good number of subprime loans were made to well-educated people who knew what they were doing, knew the risks, but took out the loans, anyway.
* Is foreclosure an issue best left to be dealt with between a lender and a borrower? Why does the state need to be involved, at all?
Is anyone else asking these questions?
Does anyone really care?
State subprime bailout – By Scott Van Voorhis and Jay Fitzgerald, The Boston Herald
Back to Boston condos for sale homepage
Contact me to find out more about Boston condos for sale or to set up an appointment call/text 617-595-3712.
SEARCH FOR CONDOS FOR SALE AND RENTALS
- Back Bay condos under $650k – $1M
- Beacon Hill condos $650k – $1M
- Charlestown condos $650k – $1M
- Charlestown Navy Yard condos $650k – $1M
- Dorchester condos for sale
- Dorchester Heights condos
- Fenway condos $650k – $1M
- Jamaica Plain condos $650k – $1M
- Leather District condos $650k – $1M
- Midtown downtown condos $1M – $5M
- Seaport District condos 650k – $1M
- South Boston condos $650k – $1M
- South End condos $650k – $1M
- Waterfront condos $650k – $1M
For more information please contact one of our on-call agents at 617-595-3712.