GA approves legislation to aid foreclosed homeowners

PROVIDENCE – Legislation that could allow more foreclosed homeowners to stay in their homes, and repurchase them through nonprofit organizations, has been approved by the General Assembly.
The measure on Tuesday was being sent to Gov. Gina M. Raimondo for her signature.
The legislation was sponsored by Rep. Jeremiah T. O’Grady, D-Lincoln, and Sen. Gayle L. Goldin, D-Providence. It is based on laws already in place in Massachusetts and Maryland, and will allow nonprofit organizations to purchase foreclosed homes in Rhode Island, then sell them back to the homeowners with new mortgages they can afford.
Under current law, lenders in Rhode Island require sellers and buyers of foreclosed residential properties to sign an affidavit, stating that the distressed homeowner will not be allowed to remain in the house. The law will change that in instances where a nonprofit is involved.

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