By DONNA KENNY
KIRWAN

PAWTUCKET — The old expression “Don’t put off until tomorrow what you can do today” applies to many things, but it is advice that should definitely be taken to heart by anyone facing foreclosure.

The Blackstone Valley Community Action (BVCAP) offers foreclosure assistance to local homeowners who find themselves in financial crisis. Free counseling is provided, as well as intervention, when possible, with the bank or credit union.
In May, the city beefed up its capacity to help homeowners by hiring an additional staff member for BVCAP through a $21,000 Community Develop-ment Block Grant.
In addition, the office of Attorney General Patrick Lynch announced plans to hold a series of free seminars throughout the state to educate potential homeowners.
Part of that program addresses the common pitfalls that lead to foreclosure. In June, one of Lynch’s sessions was held at Jenks Junior High.
When it comes to foreclosure situations, the biggest mistake people make is waiting too long to seek help with their finances, said Daisy Luciano, BVCAP’s housing counselor.
“Once they know they can’t make their mortgage payment, they should come to a counselor,” Luciano said. “Too many people wait until they get a notice of foreclosure. Sometimes, by then it can be too late.”
Luciano said she can help people with their budgets, to identify where money is going out and to find ways to save.
In addition, she said she can contact the mortgage lender to explain a situation and discuss possible ways of avoiding foreclosure action. “Sometimes, people just don’t know where or how to call,” she said.
Luciano stressed that the most important step, however, is to get homeowners to look at their monthly budgets and to understand where their money has been headed.
“We help them to realize ways they can save money,” she said. “We tell them they have to cut down. Going out to eat less, using a car pool, shopping for the sales on grocery store items ... anything they can do to save a couple of bucks is important.”
For example, Luciano often suggests that people can save a substantial amount of money by dropping their “bundled” cable TV, phone and Internet service and making use of other options.
Dropping the premium cable TV package down to a basic service, switching their cell phone to a pre-paid plan, and using the free Internet service available at the library will reduce monthly expenses.
“Sometimes they say, ‘I can’t live without that,’ and I tell them, ‘Do you want a roof over your head or do you want luxuries?’” Luciano said.
In some cases, Luciano counsels people to take a second job, even if it is just to temporarily get themselves out of a financial jam. In addition, she said banks and mortgage lenders have become more willing to work with homeowners to help them avoid foreclosure. In many cases, a loan modification or other type of payment plan can be agreed upon so the homeowner won’t lose the house.
Luciano also noted that everyone’s situation is different. One recent client, a married 51-year-old male, came in to see her when he was two months late with his mortgage payment. He had incurred a loss of income due to some health issues, but through a refinancing of his 30-year, 7.9 percent loan, he was able to keep his house, she said.
Another client, a married, 34-year-old Hispanic man who speaks little English, came to Luciano with concerns over how he was going to make the payments on his 30-year, 7.85 percent loan that didn’t include taxes or insurance.
“In this case, he wasn’t yet late with a payment, but there wasn’t enough income. We were able to get him a loan modification that extended the payments to make it more affordable,” she said.
Despite BVCAP’s efforts to promote the foreclosure assistance program, Luciano is surprised more people haven’t come in for help. “We know they are out there,” she said.
She thinks some people are in denial about their financial situation, while others, she fears, have given up.
Luciano said that with the slowdown in the housing market and the current economy, banks and credit unions are more willing to help homeowners than ever before. “Nothing is set in stone,” she said. “I tell people, ‘Come in now before it’s too late, and while they’re willing to work with you.’”
In addition to the BVCAP program, there are some other recent initiatives designed to help struggling homeowners.
On Tuesday, Aug. 12, Gillette Stadium in Foxboro will host a foreclosure prevention workshop from 1 to 8 p.m. in the Fidelity Investments Clubhouse.
The address is East One Patriot Place; the parking lot entrance is P1. The event is free and open to all borrowers in difficulty. Parking is also free.
The workshop is being hosted by the New England Patriots Charitable Foundation and the Federal Reserve Bank of Boston. According to a press release, the event is an opportunity for homeowners who are in financial distress, or concerned about foreclosure, to sit down with their lender face to face and avoid foreclosure if possible.
The event is supported by a number of New England elected officials, including Rhode Island Gov. Donald Carcieri, Massachusetts Gov. Deval Patrick, Connecticut Gov. M. Jodi Rell, Maine Gov. John Baldacci and U.S. Rep. Barney Frank.
According to a press release, borrowers should bring documentation on their income, expenses, debts and mortgage to the workshop, so they are fully prepared to talk with their lender. The documentation may also be useful in talking with a housing or credit counselor.
Among the mortgage lenders and service providers scheduled to attend are Bank of America, Chase, CitiGroup, Countrywide, EMC, Freddie Mac, GMAC Rescap, Home Loan Services, HSBC, Indy Mac, Litton, National City, Option One/American Home Mortgage, Saxon, Suntrust, Washington Mutual and Wells Fargo.
On a related note, Congressman Patrick J. Kennedy on Thursday announced his support for the Foreclosure Prevention Act of 2008 (HR 3221), legislation that responds to the ongoing foreclosure crisis by providing assistance to homeowners at risk of foreclosure.
The legislation provides mortgage refinancing assistance to keep 400,000 families from losing their homes, and expands a Federal Housing Administration (FHA) program that allows borrowers to refinance their way out of mortgages they cannot afford.
The legislation also includes a tax credit for first-time homebuyers, which is equivalent to an interest-free loan for 10 percent of the home’s cost up to $7,500.
“This bill will provide Americans with the relief they so desperately need and is a crucial step toward stabilizing the American economy and keeping American families where they belong ... in their homes,” Kennedy said.
The bill also includes a lifeline for Fannie Mae and Freddie Mac, proposed by President Bush, that would not include a dollar cap but would be subject to the federal debt limit. Bush had previously threatened to veto the bill, but retracted his objections on Thursday, according to a press release.