If someone you know is at risk of
losing their home, don’t wait to have
them call ESAC, 617 524-2555.

Sustainable Homeownership - Foreclosure Prevention - Saving a home for a three generation family

Patricia Stewart has owned a house in Cambridge for thirteen years. Her daughter is living with her while finishing nursing school along with her four children, two of whom sit at the dining room table doing their homework. Their family home, cozy and warm on a windy fall day, feels like the perfect support for these people making their way in the world. The security here looks solid but for this family one bout of illness and one job loss almost meant disaster.

Patricia and her husband refinanced several years ago to take advantage of their home’s equity. When her husband passed away, the lender suggested a refinance and it seemed a smart way to get some much-needed cash. At that time, the mortgage payments fit into the household budget but there were two things this family had not planned on. Patricia became ill and lost her job. When she fell behind on payments, she called her mortgage company to make some arrangements, but she says, “They didn’t want to hear it.”

At serious risk of foreclosure and struggling to support herself and her family, Patricia called ESAC’s Sustainable Homeownership Center. Foreclosure Prevention Counselor Virginia Pratt made repeated efforts to negotiate with Ms. Stewart’s lender. As the foreclosure date neared, Virginia referred Patricia to the Jamaica Plain Legal Services Center to file for bankruptcy to stop the foreclosure. Having cleared one hurdle, Patricia initially made the bankruptcy payments along with her regular mortgage payments. But, the high cost of Patricia’s subprime loan continued to stretch the family budget. A few months later, Virginia responded to Patricia’s need for additional help by securing a more affordable refinance loan through Cambridge Savings Bank. “They looked at my whole payment history to get me a much lower rate,” Patricia says, “which lowered my monthly payments.”

ESAC’s efforts went even further by continuing to support the family through difficult times. Virginia Pratt says, “I was able to access fuel and other emergency assistance to provide stability,” says Virginia, “and we also worked together to alert the Massachusetts Banking Commissioner about the mortgage servicing abuses she had experienced with Option One.”

Sometimes part of the solution to a family’s challenging situation is a multi-step process that involves months or even years of work involving many different players.