Homeowners struggling to make payments on adjustable-rate mortgages could get a little extra help from the state under legislation signed into law Friday.
The measure, which expands a homeowner-assistance program, would help those seeking to refinance adjustable-rate mortgages by guaranteeing lenders that the state would cover 10 percent of the loan if a home is foreclosed upon.
Scott Burnham, a spokesman for Treasurer Alexi Giannoulias, said the state has set aside $5.8 million for the program.
"This allows more people to qualify for refinancing and helps prevent foreclosure by helping borrowers get non-predatory loans," Burnham said.
The new law would also allow homeowners to apply for help before they default on a loan, he said. That is a step in the right direction.
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