Western Massachusetts Foreclosure Prevention Center

The Western Massachusetts Foreclosure Prevention Center is a partnership of local agencies throughout the Pioneer Valley and Berkshires that has a single mission: to help homeowners avoid foreclosure.

If you are in danger of foreclosure, please call 413-233-1622 to be referred to a local counseling agency near you.

If you are worried that you may default on your mortgage but are not yet facing foreclosure, we still recommend that you call as soon as possible, as there can be more options open to you in these early stages.

All counseling is free and confidential.

HAPHousing is the administrative agency for the Center.
Click here to see a complete list of the our Partner Agencies and their contact information.

 

 Watch for Upcoming Events

Representative John Olver (left) has attended several of the Western Massachusetts Foreclosure Prevention Center events to demonstrate the state's commitment to helping local residents remain in their homes.

Upcoming events will be posted here as they are scheduled, so check back often. Events include opportunities to:

  • Meet face to face with your mortgage lender to discuss loan  modifications and alternative to prevent foreclosure
  • Meet with local housing and credit counselors
  • Attend educational seminars about keeping your home.
But you don't have to wait for an event to get help. Call 413-233-1622 today to be referred to a local counseling agency near you.

WONDERING ABOUT THE NEW FEDERAL ASSISTANCE FOR HOMEOWNERS FACING FORECLOSURE?

THE FOLLOWING TERMS APPLY TO ALL “MAKING HOME AFFORDABLE” PROGRAMS

 

1. All homeowners must contact their lenders directly to participate.
2. This new program runs from April 1, 2009 through June 10, 2010.
3. This new program is not automatically given to homeowners at risk of losing their homes. Borrowers must have sufficient income and must meet all program eligibility requirements.
4. All rescue programs are designed to assist with the first mortgage only. If the homeowner has a second mortgage, this mortgage must be subordinated.
5. There can be no debt consolidation.
6. The owner must have lived in the house for three months.
7. The mortgage must have originated before January 1, 2009.
8. Owner occupied 1-4 unit family homes including condos and planned unit developments are eligible.
9. The loan to value on the first mortgage can not exceed 105%.
10. There is a counseling requirement for homeowners. Although all lenders want homeowners to seek counseling, they are only mandating counseling for clients with a 55% debt to income ratio.
11. All arrearage plus interest, fees, homeowner’s insurance, real estate taxes and condo fees will be included in the first mortgage.

HOMEOWNERS WITH A FANNIE MAE OR FREDDIE MAC MORTGAGE MAY REQUEST ASSISTANCE UNDER THE NEW FANNIE MAE OR FREDDIE MAC REFINANCE PROGRAM
(call your lender to find out if you have a Fannie Mae or Freddie Mac mortgage)

 

FREDDIE MAC AND FREDDIE MAC REFINANCE PROGRAMS:

  • No temporary income can be used to qualify, such as unemployment income.
  • The program is designed to assist homeowners who are current but are in variable rate mortgages. The program will also assist homeowners who are struggling to pay their variable rate mortgages or homeowners who own property with declined values.
  • The program will correct high interest rates, variable rates, terms of mortgages and balloon payments
  • On new refinances the homeowner’s credit score should be 620, but there may be some flexibility in the credit score if the refinance is in the customer’s best interest (Freddie Mac only)
  • There is no minimum credit score required (Fannie Mae only)
  • Borrowers can not have any 60 day late notices on their mortgage history in a 12 month period (Fannie Mae only)
  • Borrowers may only have one late 30 day notice on their mortgage history in a 12 month period (Fannie Mae only)

                                                                                                         

HOMEOWNERS WITH NEITHER A FANNIE MAE NOR A FREDDIE MAC MORTGAGE MUST REQUEST ASSISTANCE UNDER THE NEW LOAN MODIFICATION PROGRAM:

 

NEW LOAN MODIFICATION PROGRAM:

 

IMPORTANT: IT IS STRICTLY VOLUNTARY FOR LENDERS TO PARTICIPATE IN THIS NEW PROGRAM FOR MORTGAGE MODIFICATIONS

 

  • Investment properties or owner-occupied homes with 1-4 units are eligible.
  • To qualify for the loan modification program, the homeowner must have a debt to income ratio over 31%.
  • The homeowner has to be 60 days delinquent or be at risk of mortgage default.
  • The lender can not charge any fees associated with this mortgage modification.
  • The lender may reduce the homeowner’s current mortgage rate by 2% or more.
  • The appraised value of the home will be determined by the lender. The lender will only be using the net value.
  • The goal of the loan modification is to get the homeowner’s debt to income ratio as close to 31% as possible, making the mortgage more affordable.
  • The mortgage modification is for a 5 year fixed term. After completion of the 5 year term, the lender can gradually begin increasing the rate. The lender can not increase the fixed rate more than 1% a year, and it caps at the original rate.
  • There is a trial period associated with the mortgage modification. The homeowner must make their first three mortgage payments on time before the loan modification is finalized.  If a payment is late or missed during the trial period, they forfeit the mortgage modification.
If your lender chooses not to participate in the mortgage modification program, you should seek help from a foreclosure prevention counselor to explore other alternatives. Please call Western Massachusetts Foreclosure Prevention Center at (413) 233-1622 or toll free (800) 332-9667 x 1622 for more information.  Our counselors will provide free and confidential assessments, based on the federal government’s new “making home affordable” program.