Massachusetts resident Monica Jarvis told reporters that she bought her home for $400,000 but fell prey to a predatory lender who forced her to seek a mortgage modification that will force her to pay approximately $1 million by the time she pays off the mortgage. Jarvis said she fears she won’t be able to retire because she owes her bank so deeply.
In another case, a Massachusetts homeowner Nadine Gregory bought a home under Obama’s Home Affordable Modification program. After submitting all the necessary paperwork, her bank informed her she submitted erroneous work, resulting in the foreclosure of her home. Homeowners like Jarvis and Gregory are fed up with miscommunications and harsh procedures from their banks, and are testifying at the State house on June 29th in favor of a rule that creates a mortgage foreclosure mediation program.
If the house rules in favor of the mediation program, a third party mediator can mediate foreclosure disputes between homeowners and their banks. Some lawmakers, including Springfield Senator James Welch, are in favor of any mediation practice that would even the playing field between banks and mortgagees. This proposed mediation petition is currently devised for Boston, but could spread into other towns statewide.
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