Foreclosure Assistance Centre Queues

Posted on April 30, 2008
Filed Under Foreclosure Homes |

There are long queues in front of Foreclosure Assistance Centre in West Palm Beach. Amongst those clutching on to a bunch of papers is the assistant manager of a bank Dee Sherrod who has always had a clean record of earning for her living. Each of those in the queue has a different story to narrate. Some like Sherrod are lagging behind in payments. Others are seeking modification. All have one concern – to stay on in their houses that are their homes. But fate and time seems to be against them.

The centre is the first of its kind in the country. It made its debut on 1^st April in a heritage building owned by the city on Fern Street. On an emergency basis the house owners can qualify for a $10,000 assistance to catch up with due payments. The city charges a low interest rate. The repayment starts after five years from the date the city sanction the loan. However those who have taken loans beyond their means are not helped. Only the deserving qualify for these loans.

To qualify one must be a resident of West Palm Beach. The Foreclosure Assistance Centre has six full time employees. One of them makes contacts with the lender and tries to work out a formula for modification of the loan on more realistic terms – something that the borrower can afford. So far the record in this respect has been poor – it does not work out. This is mainly because the borrower is too far behind and the banks want their money.

If a agreement cannot be reached there are three other options. The overdue amount is paid by the centre and the borrower agrees to return the money at 3% interest to the assisting body. The repayment will start after 5 years from the date of taking this new loan. So far two dozen loans have been sanctioned – each amounting to on an average, $15,000. Alternatively the centre finds out a new lender with a fresh financing plan. If all three options dry out then the centre takes an initiative in trying to sell the house as quickly as possible.

Sherrod was trying to avoid a short sale. This house has been her home since the last six years. Today she shares with her mother and infant son. She is desperately looking for a loan.