City Of Philadelphia To Implement Second Program To Assist Financially Strapped Homeowners With Subprime ARMs

In Philadelphia, Pennsylvania, The New York Times reports:

• Philadelphia announced a program on Wednesday to reduce the number of people who are forced from their homes because they cannot afford the payments on an adjustable-rate subprime mortgage.

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• Mayor Michael Nutter said the program, in which the city is investing $2 million to pay for legal services and people to counsel homeowners, is intended to solve payment problems before they reach foreclosure. Mr. Nutter urged people to contact the city before they receive a foreclosure letter from their lender.

For more, see Philadelphia Will Try to Reduce Foreclosures.

Editorial Note:

Unlike Philadelphia's Residential Mortgage Foreclosure Diversion Pilot Program, which was recently designed and implemented by the local judiciary in Philadelphia County to help those homeowners who are already in the legal process of foreclosure (and without regard to whether those homeowners have adjustable or fixed rate mortgages), this more recent program announced by Mayor Nutter targets those homeowners who are not yet in foreclosure but who face onerous terms (and onerous changes in the terms) of their subprime adjustable rate home mortgages.

Go here for other posts on the Philadelphia foreclosure diversion program.