State’s Home Foreclosure Prevention Program Continues to Expand and Assist Homeowners
June 9, 2010 – (RealEstateRama) — Professional & Financial Regulation – Consumer Credit RegulationThe Bureau of Consumer Credit Protection signed a contract on Monday with Washington Hancock Community Agency (WHCA), increasing the number of housing counselors serving Maine homeowners. This contract adds a ninth certified housing counseling service to the eight non-profit agencies currently under contract around the State.
“Each well-trained housing counselor can assist up to 125 homeowners annually in working to prevent foreclosure,” commented Will Lund, Superintendent of the Bureau. “We know there is need in this area, because in the past year more than 1,000 residents of Washington and Hancock Counties have defaulted on their mortgages.”
“We are especially pleased to make this connection with Downeast communities,” Superintendent Lund said. “Every homeowner who needs help should be able to talk with someone local, someone who knows the special challenges in each region of the State.”
Like all agencies referred through the Bureau of Consumer Credit Protection, WHCA will not charge fees for this service. “We want to encourage financially troubled homeowners to contact us early to improve their choices of available remediation options,” said WHCA’s Executive Director Tim King. “Homeowners will have a better chance at keeping their homes if they work with an HUD-approved counselor.”
To speak with a homeowner foreclosure counselor, call WHCA at (207) 546-7544 between 8:00 a.m. and 4:00 p.m., Monday through Friday.
The Bureau previously signed contracts with eight other non-profit agencies: York County Community Action Corp.; Coastal Enterprises, Inc.; Community Concepts; Penquis; Kennebec Valley Community Action; Sustainable Economic Solutions; Aroostook Community Action; and Pine Tree Legal Assistance.
These contracts provide counselors to whom the Bureau can confidently refer homeowners. Those counselors are trained to gather financial information; negotiate with mortgage lenders, servicers and foreclosure attorneys; and develop payment deferral plans, loan modifications, loan restructurings or other remedies. The contracts signed to date have resulted in the hiring or retention of ten counselors.
Funding for the program comes from an assessment on lenders at foreclosure auctions. The effort to assist homeowners was the result of legislation that took effect in September, 2009.
“Many foreclosure relief programs are now offered by the federal government or through large mortgage investors,” said Lund. “However, they are often complex and involve assembling numerous financial documents and negotiating with lenders. Our trained counselors assist homeowners throughout Maine through the maze of red tape in order for the consumers to achieve loan modifications.”
The Bureau of Consumer Credit Protection was established in 1975 to enforce a variety of credit-related consumer laws. Part of Maine’s Department of Professional and Financial Regulation, the Bureau licenses lenders, creditors and collectors; conducts periodic examinations of creditors to determine compliance with state laws; and responds to consumer complaints and inquiries. The Office also conducts educational seminars and provides speakers to advise consumers and creditors of their legal rights and responsibilities. Free foreclosure assistance for consumers can be obtained by calling the Bureau’s toll-free hotline, 1-888-NO-4-CLŌZ.
