Truemors
Last year, the number of foreclosure petitions filed in the Nantucket Superior Court and Massachusetts Land Court was over 23. After one year, the foreclosure petitions have risen to 92, a 421 percent increase.
In Nantucket, the filing of the foreclosure petitions actually signifies the beginning of the foreclosure process. The distressed homeowners will then try to work out their mortgage problems or simply decide to sell before the foreclosure deed is drawn up.
Although a significant number of the distressed homeowners manage to regain their footing, the increase in petitions has certainly alarmed local officials. During the first wave of the subprime mess, the island has actually stood firm. But with slowing national economy and decline in home values, Nantucket’s housing market can no longer stay immune.
Local bank officials are surprised with the news. Most claim that they are doing their job in determining which mortgage product will suit the borrower’s needs and budget. Some banks, on the other hand, have admitted to having lending programs like the ‘no income verification’ program. The said program involves not verifying the loan applicant’s income tax returns during the mortgage application process.
The rising number of foreclosure fillings has certainly made these banks think twice about their lending programs and most have been suspended. Today, lenders require a higher credit score, larger income and bigger down payment than what was required before. If you are looking to take out a huge loan amount, you should be prepared to be scrutinized thoroughly.
In order to curb the growing foreclosure crisis in Nantucket, local officials are advising distressed borrowers to seek foreclosure help from the Housing Assistance Corporation. They should not wait for the foreclosure petition to be filed before taking action. Options such as mortgage re-structuring or simple forbearance are just among the alternatives they could explore to avoid foreclosure.
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