Massachusetts Homeowners May Get More Foreclosure Assistance 

Until recently, Massachusetts has been spared some of the devastating numbers of distressed properties that have been plaguing much of the rest of the country.  But now we may just be getting our share. 

Through an article in the Boston Globe, The Warren Group has reported that the number of foreclosures in Massachusetts has skyrocketed with a 56.7 percent increase from last year with 7,431 homeowners losing their properties. 

With these rising numbers, a law was passed last week that is designed to help keep struggling homeowners from losing their homes and to help renters who are currently being threatened with eviction. The bill would force lenders to make a good-faith effort to work with homeowners who are behind on their payments and also to wait for at least two months before taking any action. 

The proposed legislation would also criminalize mortgage fraud which is surprisingly not really addressed by our existing state laws. 

The bill called "An Act to Stabilize Neighborhoods" is being aggressively pushed by housing advocates who say it is huge step forward and one of the strongest pieces of tenants' rights legislation to be put forth in this state in the past decade. 

The other side of the coin is that lenders in the state are concerned that by keeping owners in their properties for extended periods of time it could actually drag out the foreclosure process. 

Kevin Cuff, executive director of the Massachusetts Mortgage Bankers Association claims that it will be difficult for the industry and is geared more toward consumer protection than to helping out the economy.  One of the provisions of the bill is to extend from 90 to 150 days the states' "right to cure" law which requires lenders to wait an additional two months before taking back a property and they must have at least one meeting to plan a renegotiating strategy on the mortgage. 

Right now, it is unclear as to exactly when Governor Patrick will put his rubber stamp on this piece of legislation - but his office has said that keeping people in their homes right now is a huge priority for the state of Massachusetts.

Copyright 2010 "Massachusetts Homeowners May Get More Foreclosure Assistance"

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