Massachusetts Foreclosed Homes

Bay State Lawmakers Pass Foreclosure Bill

The Massachusetts Legislature, after months of debate and thousands of foreclosures, passed a bill that provides protections for homeowners facing foreclosure while strengthening oversight of mortgage companies, the Boston Herald reported November 22, 2007.

"A key measure gives homeowners facing foreclosure a 90-day window to work out a deal with their lenders. Also included: mandatory counseling for first-time home buyers preparing to take out adjustable rate mortgages and $2 million for the nonprofit agencies that provide this service. The bill also allows residents who have lost their homes to remain as tenants at will and pay rent for up to six months."

Some so-called housing advocates apparently were disappointed the bill failed to include stiffer penalties that would make mortgage fraud a criminal offense.

"Tougher rules might have prevented some of the questionable lending that has sent foreclosure rates skyward, said Thomas Callahan, executive director of the Massachusetts Affordable Housing Alliance."

Of course no new law will prevent consumers from being foolish.

The bill also requires state exams for the vast majority of mortgage lenders and a system for rating mortgage companies. Governor Deval Patrick is expected to sign the bill into law.

Read The Boston Herald Article

More Than 6,000 Mass. Homes Seized In 2007

Lenders have seized more than 6,000 Massachusetts homes due to foreclosure in 2007, triple the number lost by delinquent homeowners over the same period in 2006, according to data published by The Warren Group.

The Boston Globe reported November 21, 2007 that 6,258 Bay State homes were taken from their owners year to date.

August was a record month in the ongoing foreclosure mess. Lenders seized a record 1,018 properties in August, and initiated 3,115 new foreclosure petitions against homeowners, also a record. In September, 673 properties were seized by lenders, and 731 in October.

One reason foreclosures might have declined is that lenders may be holding off because there are fewer potential buyers available in the current real estate market.

The new data may actually undercount the number of homeowners who have lost their houses because they could no longer afford their mortgages. That's because The Warren Group does not count those transactions, known as deeds in lieu of foreclosure, in which homeowners agree to turn over their deeds before the lender moves to seize the property. Other cases involve delinquent borrowers selling their home for less than the outstanding debt, and either owing the remaining amount or getting lenders to absorb that loss. This is typically referred to as a "short sale."

Worcester County had the highest number of foreclosures through October, according to The Warren Group: 1,074, up from 428 a year earlier. It was followed by Middlesex County, 903; Essex County, 779; Suffolk County, 743; and Bristol County, 648.

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Read The Boston Globe Article

Check out the Globe's foreclosure map

MA State Auditor Wants More Staff

In the wake of the subprime mess, Massachusetts State Auditor Joe DeNucci says the Commonwealth needs more staff to watch over the mortgage industry, the Boston Herald reported November 27, 2007.

"An audit found the state Division of Banks’ ability to enforce mortgage rules has lagged the industry’s growth in recent years."

Read The Boston Herald Article