Laws on Boston Foreclosures Modified

by Simon Lindsay on cities

Homeowners and tenants facing Boston foreclosures will be happy to know that changes to the state's foreclosure rules have been made into law following Massachusetts Governor Deval Patrick's signing of a bill that carries these changes. Patrick reportedly signed the bill at a foreclosed single family dwelling which has been rehabilitated by a home agency in Brockton.

Under the new law, tenants of apartments or for-rent foreclosed homes in Massachusetts cannot just be evicted by lenders unless there is just cause. This cause could include nonpayment of rent, delay in payment or any other lease agreement violation.

Meanwhile, owners of distressed properties are provided two months of extra cooling off time under the new regulation. Originally, the period provided to both lender and owner to negotiate for an alternative to foreclosure is good for 90 days, but under the new law, that period has been temporarily extended to 150 days.

How to find foreclosure listings for Massachusetts areas is not difficult as the state has thousands of foreclosed properties and this is what local authorities are trying to address. According to them, the new law will help ease some of the burdens of homeowners and tenants facing foreclosure and might even give them some time to find another way.

The new regulation also has a provision for elderly homeowners facing Boston foreclosures and foreclosures in other areas of the state. This provision requires older residents seeking reverse mortgages to get the assistance of a counselor who has the approval of the Executive Office of Elder Affairs. Furthermore, fraudulent mortgage-related operations are criminalized under the new guidelines.

Local housing advocates had long campaigned for better protection for homeowners and tenants. According to them, tenants in particular have always been vulnerable to foreclosure, even those who diligently pay their rent. Prior to the establishment of the new law, lenders can just evict them from the building, most of the time even without warning.

With the new law in place, renters who pay their rent can be protected. For homeowners facing state or Boston foreclosures, the extra time to find an alternative to foreclosure can go a long way towards saving their properties and cutting foreclosure rates in the state.

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