Rhode Island Housing’s Homesaver Program
I hope you all had a great Thanksgiving, despite the news that Rhode Island’s foreclosure rate during the second quarter of this year was the highest in New England, there is still a lot to be thankful for. In order to provide more resources and options to the thousands of people in crisis, Rhode Island Housing recently opened a help center to expand counseling services and is now offering a new loan product to Rhode Island that may help borrowers who are unable to pay their mortgages. This week we had Richard Godfrey, the Executive Director at RI housing on to talk about these programs.
My friend and past guest Nicolas P. Retsinas, director of Harvard University’s Joint Center for Housing Studies said “I give credit to Rhode Island Housing for not standing on the sidelines and wishing this problem will go away. The market will correct, but there will be collateral damage literally to thousands of homeowners. This is one small step.”
The Rhode Island Housing Help Center’s counselors are encouraging people who are having financial difficulties to contact the Center or their lender at the first signs that they might be in trouble. Counselors will assess each client’s situation and provide advice and education to help them:
1: Avoid losing their home or strategize to help cope with the loss of their home.
2: Make sense of their existing mortgage.
3: Make safe, informed decisions about finding an affordable rent or mortgage.
The counselors will also screen borrowers who may be eligible for “home saver loansâ€. The loans will enable eligible homeowners to refinance up to 100 percent of their houses value at more favorable terms than what is generally available through private sector lenders. “We don’t want to create false expectationsâ€, Godfrey said. We’re guessing 1 in 10 people who call for help will qualify. The “Home Saver Loans†will offer:
1: Up to $374,000 for single-family houses and condos.
2: Up to $400,000 for two-family houses.
3: Secondary loans for up to 10 percent of the house’s value to cover closing costs.
To be eligible to apply, borrowers must live in the houses they own and meet the federal
Government’s definition of low to moderate income. The eligibility criteria would probably exclude homeowners who have significant debt beyond their mortgage or whose current mortgage exceeds the value of their house.
This Weeks Real Estate Insight:
Rhode Island Housing has been providing low-cost mortgages to first-time buyers since 1973. The Warren Group, ranked Rhode Island Housing as the State’s third-highest lender for house-purchase loans. During the first nine months of this year, the agency originated 388 of the 8,380 such loans made in the state.
May 21st, 2008 at 4:40 pm
I have lived in my house since 1994 we fell on hard
times due to purchase of a business and had to refi
with New Century they are now bankrupt and have sold our loan to America Servicing Company we have
tried to modify our loan they came back after 6mths
of red tape with a offer of 2178.00 a mth We can’t
make these payments we have tried RI housing were
not first time homembuyers
Any info on how to keep my house from a predatory
lendor that does not return calls.
Check out the website that dosen’t exist with thousands of people that have lost their home to them.
June 2nd, 2008 at 2:53 pm
Dear Karen,
My heart goes out to you and everyone in similar situations. Do you have any equity in your home now? If you have at least three percent equity, RI homesaver program may be able to help. Try calling the RI housing help center at 401 457-1130, they can help you understand your options, and provide resources and referrals to help. Every situation is different and they take a customized approach to each individual’s needs. The sooner you call, the more options you’ll have.
Sally