Foreclosure prevention in Rhode Island. The Federal Government pushing a bill to help home owners.

The Federal Govenment announced this week to propose a bill that would help stave off foreclosures in Rhode Island and 5 other states. This $600 million dollar bill is aimed at keeping those who have suffered unemloyment or illness recently and are struggleing to make their mortgage payments. With unemployment figures in the double digits, it’s no wonder some are having a tough time making ends meet.

The Foreclosure Bill here in Rhode Island was commented on by Richard Godfrey, The Director of Rhode Island Housing, a partner in the proposed allocation of the Federal money. He states: “While Rhode Island Housing has gained much experience and success working through our HelpCenter and helping customers undergoing mediation under various city ordinances, the mortgage modification process across the country has proven to be slow and complicated,” said Richard Godfrey, Executive Director of Rhode Island Housing. “When our program is available to borrowers in mid-October, mortgage modifications will remain a challenging process. But we will be diligent about finding ways to help those who are facing foreclosure. If families can ultimately afford to keep their homes, then this is another valuable tool to help them. It is imperative that those in trouble do not wait for the federal funds to arrive. If you are struggling to pay your mortgage you should contact your lender or a HUD-approved counseling agency right away.

“Successful modifications will require time and commitment on the part of the customer as well as the lender and counseling agency. Patience and realistic evaluations of long-term personal financial situations are essential,” added Godfrey.

It could be just what gets Rhode Island on top again in real estate. For those that have no chance of making their payments now or in the future, short sales can be an option. First things first, talk to your attorney, tax professional, and above all speak with your lender as soon as trouble starts.

Mark McHugh has helped many clients over the years with short sales by getting the right professionals in place to answer all the questions a struggling homeowner may have. Email markm@slocumrealty.com or call 401-641-3842