Boston Community Capital Shows the Way on Foreclosures

While the nation’s biggest banks, with a taxpayer bailout of more than $2.5 trillion and counting, continue to refuse to write down the principal on a mortgage to allow people to stay in their homes, Boston Community Capital (BCC) is showing what is possible.  This small non profit is buying houses out of foreclosure, selling them back to families that lost them and giving them a new, more affordable mortgage.

The New York Times reports that BCC handles only about 120 homes per year.  But it shows how we can avoid millions more displaced families.  But adding insult to injury, some of the nation’s largest banks, HSBC, JPMorgan Chase and Wells Fargo, will not permit BCC to sell a home back to the original owner.  The New York Times reports These banks are “saying they’re trying to prevent fraud”, the New York Times reports.  Now that’s chutzpah.  According to many experts, the entire mortgage edifice created by these same banks is fraudulent from head to toe.

 

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David Morris
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David Morris

David Morris is co-founder of the Institute for Local Self-Reliance and currently ILSR's distinguished fellow. His five non-fiction books range from an analysis of Chilean development to the future of electric power to the transformation of cities and neighborhoods.  For 14 years he was a regular columnist for the Saint Paul Pioneer Press. His essays on public policy have appeared in the New York TimesWall Street Journal, Washington PostSalonAlternetCommon Dreams, and the Huffington Post.