Residents of Boston, Massachusetts, whose properties are under home foreclosure auctions, are getting some help from the local nonprofit group Boston Community Capital (BCC). The group has been financing affordable homes and commercial real estate in the area for the past 25 years.
As more residential properties become foreclosed homes for sale in Boston, MA, the BCC increases its drive to help low income homeowners regain control of their homes and avoid getting evicted from their properties. BCC has started analyzing the sharp increase in city foreclosures three years ago and noticed disparities between mortgage debt and borrowers’ income.
To help address the problem of Massachusetts foreclosed homes, the organization established a mortgage brokerage that offers refinancing commensurate to homeowners’ income levels. Officials from the organization revealed that the decision to establish the brokerage was prompted by their findings that majority of homeowners in the city have huge mortgages that they can never afford which in turn, makes it impossible for most of them to get refinanced.
The BCC rescue program operates in such a way that the group purchases residences from home foreclosure auctions and other channels after foreclosures, but prior to the owner getting evicted. The nonprofit is able to buy these dwellings for a very low price and then sell them to the original owners at a mortgage package that they can afford; mostly in the form of a fixed-rate mortgage.
The BCC has also launched an initiative called Stabilizing Urban Neighborhoods. The program is responsible for buying properties from foreclosure houses listings and selling them back to homeowners and is also tasked with providing affordable financing. The program is a $50 million initiative and has already bought and sold more than two thousand dwellings within a period of five years.
The money used to help homeowners who are about to lose their houses to home foreclosure auctions comes from private investors. BCC was able to raise $32 million worth of capital in December 2009. Troubled homeowners hear about the assistance provided by the nonprofit through community associations like the City Life.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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