Lending companies provide people with money to purchase homes based on the belief that they will be able to repay the loans on time. They charge interest on the money borrowed and assign fines for late payments or bounced checks. But companies that offer mortgage financing may also cut corners, which can hurt Worcester, Massachusetts, residents.
During the height of the mortgage boom, home loans were generally cheap and easy to secure. Unfortunately, many of these loans had provisions that could lead to a significant rise in the cost of the loan should the economy experience difficulties, as it did during the recession. Though the mortgage industry is rebounding, some banks abused the foreclosure process during the down period, which may have led to the eviction of homeowners. Several of those banks are close to a settlement with banking regulators that will provide funds for many of the affected homeowners.