Homepage > Project Economy

Foreclosure Workshop Helps Sub-Prime Victims

Residents Look For Help

POSTED: 5:22 pm EDT July 16, 2008
UPDATED: 5:47 pm EDT July 16, 2008

A foreclosure workshop was held in Worcester on Wednesday for victims of the sub-prime mortgage crisis.

NewsCenter 5's Janet Wu reported that for some it was the loss of a job and for others, a major medical crisis. Still, other sub-prime victims said they were told two mortgages with variable interest rates were the best options.

VIDEO: Foreclosure Workshop Held

"We were first time buyers. We were not aware of anything," sub-prime victim Pawsan Khawani said.

"Do you feel they took advantage of you?" Wu asked.

"Yes. They did," Khawani said.

Others refinanced to pay off credit card bills with the promise of a lower rate once their credit was good, but those promises fell through.

"We've gotten notices. We've exhausted our savings. I don't have any other options," another sub-prime victim said.

"What is your rate right now?" Wu asked.

"It is 8 percent," Magdalena Soto said.

"What was it before?" Wu asked.

"It was 6 percent," Soto said.

"When it will it go up again?" Wu asked.

"Six months -- 11 percent," Soto said.

In Worcester, 50 homes are foreclosing per month. Statewide, more than 10,000 are expected this year. The workshop hopes to reduce that number.

"A public event so people are more comfortable with coming out and they see they are not the only people who are confronting this problem. We try to break through that denial and shame," said Consumer Affairs Undersecretary Daniel Crane.

Lenders are matched with their vulnerable customers. Billy Bonsu showed up with papers documenting his wife's sudden medical problems.

"Are you going to be able to lower your payments?" Wu asked.

"They already did it -- from $410 to $136," he said.

Links We Like

Find out what a sputtering economy and an increasingly difficult to crack job market means to you. More

You can pick your friends, but not your family -- or your neighbors. Here's what you need to know about how to deal with yours. More

If you're looking to save on your next new vehicle, a low sticker price is just one aspect. Consider all the costs and make the right decision. More

Featured On 5

Auto Insurance

Getting a great rate on your car insurance doesn't have to be difficult. Follow these three simple steps and start saving today. More