Will MA Foreclosure Bill Help Housing Market?

Attempting to put the brakes on the state's rising number of foreclosures, Bay State Governor Deval Patrick signed a bill into law that he described as one of the nation’s most consumer-friendly mortgage lending statutes, the Boston Herald reported November 30, 2007.

"The legislation requires mortgage companies to file a 90-day notice of intent to foreclose with the homeowner and the state. Borrowers would be required to receive consumer counseling before obtaining certain high-cost mortgages. Grants totaling $2 million would establish 10 education centers statewide, and promote first-time homebuyer and foreclosure counseling."

In addition, loan originators would have to be licensed by the state, and pay annual fees.

Will any of the above actually improve the current state of the housing market? Not anytime soon.

The 90-day notice provision should buy homeowners some time, but in many cases may just be delaying what is inevitable. Education centers may help in the future, but can't turn back the clock for all the home buyers that chose interest only and other exotic home loans. Many more so-called subprime and other non-traditional loans will adjust over the next six to 12 months, so more homeowners likely will fall behind on their mortgage payments.

With more and more foreclosed property hitting the marketing, home prices probably will continue to decline for at least a few more quarters; however, bargain hunters and investors should be on high alert in 2008. A rise in the number of sales in the third quarter next year would not surprise me.

Read The Boston Herald Article

 

Comments

[Sam]

As there is decrease in the home value the investors and the real estate people are on their trial to get the homes at the cheaper rates.