When the foreclosure crisis hit Massachusetts, one of the most frustrating aspects for legal services lawyers and advocates for homelessness prevention was the fact that many homeowners were falling through the cracks. That is because legal services and other homelessness prevention agencies have strict income guidelines and can only assist indigent individuals or families. Due to these restrictions, many families have been unable in the past to get the help they desperately need to try and save their home from foreclosure.
Good news! Thanks to the multi-state settlement that Massachusetts was a party to, the Attorney General has been able to provide help for to any homeowner facing foreclosure regardless of income. The five national banks involved in the $44.5 million settlement are: Bank of America, JP Morgan Chase, Citi, Wells Fargo and GMAC. With a portion of this money, the AGO has launched a new statewide program, “HomeCorps”, available to any homeowner facing foreclosure, regardless of income eligibility.
The goal of the AGO’s HomeCorps is to mitigate the impacts of the foreclosure crisis by providing advocacy to distressed borrowers in Massachusetts facing foreclosure. HomeCorps is a comprehensive program which includes loan modification assistance, free direct legal representation to borrowers and post foreclosure assistance to families, as well as a series of grants to foster community restoration and organizations focused on foreclosure crisis response. HomeCorps has already received almost 10,000 calls from distressed homeowners to date. For more information about HomeCorps, or to refer a client who may be facing foreclosure, please click here.
In addition to the services available to all distressed borrowers via the AGO’s HomeCorps, there are also payments available under the National Mortgage Settlement to 21,000 Massachusetts borrowers who lost their homes to foreclosure between January 1, 2008 and December 31, 2011 and whose mortgages were serviced by Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo. Application or these payments are made directly through the national grant administrator. More information is click here.