United Way announces a new $400,000 investment to prevent foreclosures

Funds include $100,000 to better equip Mass 2-1-1 hotline to respond to foreclosure inquiries

BOSTON – United Ways serving the regions of Greater Boston and Merrimack Valley, New Bedford and Plymouth County today announced that they will collectively invest $400,000 in a large-scale coordinated expansion of foreclosure prevention services for Massachusetts families. The initiative will enable more than 600 homeowners to gain the financial education and counseling they need to work out an affordable mortgage and remain housed. It will also improve the accessibility of information and guidance for all residents of the Commonwealth on the foreclosure process through Mass 2-1-1, the State’s free information and referral hotline.

The investment was made possible through a grant from the Massachusetts Department of Housing and Community Development (DHCD) and the Division of Banks, an agency within the Office of Consumer Affairs. The funds for expansion come just after the Warren Group released new data which showed that in March 1,200 Massachusetts properties were seized by mortgage companies, an increase of more than 140 percent from the prior year. The number of petitions to foreclose also rose by 33 percent in March, an indication of the growth of foreclosures is still on the rise.

In recognition of the fact that foreclosures have affected communities throughout Massachusetts, United Way of Massachusetts Bay and Merrimack Valley, United Way of New Bedford, and United Way of Greater Plymouth County are collaborating through this investment to ensure that services reach individuals, families and agencies throughout the region.

That collaboration includes an investment of $100,000 to better equip Mass 2-1-1, the state’s free information and referral hotline, to respond to calls from residents at-risk or in the process of foreclosure. 2-1-1 makes it possible for people to navigate the growing network of human service agencies with foreclosure services. Efforts will run through the calendar year, and will focus on three key points:

* Coordinating programming and data collection;
* Streamlining information and referral processes so that residents at risk can access help immediately; and
* Building the capacity of organizations to respond to the increase in cases through foreclosure prevention programs.

The following Massachusetts agencies will receive United Way foreclosure prevention grants:

In Boston, Viet Aid received a United Way grantto provide foreclosure prevention services in the Greater Boston region. In March of 2008, 443 recorded foreclosures were recorded in the city of Boston.

On the North Shore, Lynn Housing Authority and Neighborhood Development received a United Way foreclosure prevention grant to serve the City of Lynn and neighboring communities. In March of 2008, 186 foreclosures were processed in the City of Lynn alone.

In the Merrimack Valley, Community Teamwork Incorporated received a United Way foreclosure prevention grant to serve the City of Lowell and the greater Merrimack Valley region. In March of 2008, 406 foreclosures were recorded in the cities of Lowell and Lawrence alone.

Quincy Community Action Programs received a United Way foreclosure grantto work with Neighborhood Housing Services of the South Shore in providing services to the Quincy, Weymouth, Braintree, Randolph, Dedham, Rockland, Holbrook, Rockland, Milton and Hull areas. Norfolk county has had 476 foreclosures started in the last 60 days.

Consumer Credit Counseling Services of Southern New England received a United Way foreclosure grant to work with the City of New Bedford Office of Housing and Community Development to cover New Bedford, Fall River and surrounding towns. The number of foreclosures in New Bedford alone rose 138 percent in March of 2008 compared to the prior year. The Consumer Credit Counseling Services of Southern New England will also work with Neighborhood Housing Services of the South Shore to serve Greater Brockton, Taunton, Bridgewater and surrounding communities.