Massachusetts Governor Deval Patrick will announce a new state program to help homeowners in his state avoid foreclosure, according to the Boston Globe this morning. He’s pressing mortgage companies to accept a short sale (less than what is actually due on the mortgage) so homeowners late on their monthly payments can get out without going into foreclosure. Banks mentioned in the article include
HSBC.
Governor Patrick wants lenders to quickly respond to borrowers who let the banks know they’re having trouble making payments on their mortgage. If the lender can’t or won’t adjust the borrower’s payments so the loan is more affordable, the lender would have to refer the borrower to housing counselors or to state lending programs immediately. Consumer advocates are primed to study which lenders can’t or won’t adjust the borrower’s payments. The method of adjustment will also be studied.
When a bank holds a subordinate note, such as a second mortgage, that note usually becomes worthless if the home goes to foreclosure.
HSBC pushes these type of loans through
HFC and Beneficial Finance.
*Source
http://householdwatch.com/wp/2007/10/15/watchdog-to-monitor-hsbc-in-massachusetts
