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Cash Aid to Help Homeowners and Reduce Foreclosure Rates
October 15th, 2009 by 
sharon
New Haven, Connecticut’s housing assistance program has received a financial donation to help boost its goal to reduce the foreclosure rates in the area. The Knight Libertas, a unit of the New Jersey-based capital markets firm, Knight Capital Group, donated about $100,000 to the housing assistance program.
The New Haven program helps distressed homeowners by providing them much needed cash that they can use to avoid foreclosures. The funds will be used by the Neighborhood Housing Services of New Haven to help troubled borrowers who want to seek mortgage refinancing but lack the money necessary to go through the process.
The money, which has been deposited in the rescue fund of the organization, is expected to help over 40 borrowers refinance their loans. The nonprofit organization explained that the money will act as bridge funding to help borrowers go through the process of renegotiating their loans and avoiding foreclosure proceedings.
Knight Libertas contacted the nonprofit organization about donating to help reduce the growing foreclosure rates in the area. Foreclosure has been one of the major problems being faced by homeowners for more than two years now.
The first wave of foreclosures was blamed on homeowners who made irresponsible loan choices and lenders who enticed them to take out bad loans. And as the whole country is still reeling from the impact of the first wave of foreclosure, here comes another flood of foreclosed properties. But this time, the rising unemployment rate is all to blame for it.
Nationwide, a foreclosure is being filed every 13 seconds based on the report released by The Center for Responsible Lending. The nonpartisan organization predicted that about 17,700 home foreclosures will be posted in Connecticut in 2009.
The employees of Knight Libertas understand the severity and extent of the foreclosure crisis and its impact on homeowners. Gary Katcher, executive vice president, explained that the campaign was developed because the company’s employees were alarmed about the condition of the housing market in Connecticut.
He said that the company chose the New Haven’s rescue fund because of its direct assistance to those severely affected by the growing foreclosure rates in Connecticut. The almost 120 employees at Knight Libertas donated a share of their income to the campaign while some clients voluntarily provided some gifts.
