Repurchase Program Helps Homeowners Rebound From Devastating Losses

Repurchase Program Helps Homeowners Rebound From Devastating Losses

A Maryland program that helps financially troubled homeowners repurchase their homes at more affordable terms has helped them reduce their monthly payments by an average 38 percent, housing counselors learned during a training session at DHCD headquarters on Thursday, August 14, 2014.

Rachel Dorr, general manager of the Boston Community Capital SUN initiative said the typical homeowner in their program has experienced “multiple, devastating losses” and fallen behind in their payments but is now in a position to begin rebuilding their credit.

She said the SUN initiative has helped those homeowners stay in their homes. She urged counselors to submit applications for homeowners at any point in the foreclosure process – even those who have been foreclosed upon and awaiting eviction.

Boston Community Capital’s SUN initiative is a partner in Maryland’s Foreclosure Relief Home Repurchase program, which Secretary Skinner launched last fall. DHCD offers incentives to participating housing counselors and ensures that homeowners in the program receive both pre-purchase and post-purchase counseling.

Maryland is the second state to partner with the SUN initiative after the program was launched in Massachusetts more than four years ago. SUN stands for Stabilizing Urban Neighborhoods. The program has since expanded into Rhode Island.

“Maryland is a dream to work with, because its system of getting people connected with counselors is terrific,” said Dorr.

Maryland has one of the highest foreclosure rates in the country and nearly a quarter of Maryland families are underwater on their mortgages.

But the state also is notable for the aggressive, far-reaching foreclosure prevention measures it already has taken.

Maryland is doing more than any other state in the region to help distressed homeowners. It launched the MD HOPE Counseling Network to connect distressed homeowners with safe, reliable information about their alternative and it ranks among the national leaders in making sure that settlement funds, federal funds and refinancing and modification opportunities make their way directly to homeowners.

Maryland also is one of the first states to sign foreclosure mediation legislation, giving homeowners a chance to sit down with their lenders. And working with partners in the nonprofit sector, the state has helped more than 24,000 homeowners avoid foreclosure since 2009.