Massachusetts Mulling Foreclosure Legislation
01/18/2011
By Credit.com Staff
The new laws would require that all foreclosure actions be reviewed by a judge and would force lenders to attempt to negotiate with borrowers, according to a report from the Boston Globe. In addition, it would help people who lost their properties to avoid eviction.
"Foreclosures are spreading like wildfire across Massachusetts, with some of the now hardest hit communities in rural areas and wealthy suburbs," Grace Ross, coordinator of the Massachusetts Alliance Against Predatory Lending, told the newspaper. "This is a crisis that affects everybody, and we’ve got to get on top of it."
Currently, judges are required to approve foreclosures in 23 states, the report said. Another bill would require lenders to show proof that they have a valid claim on a property before evicting a homeowner.
Foreclosures have been a controversial subject nationwide as many lenders were recently caught up in the robo-signing scandal that saw many properties seized despite being improperly reviewed by unqualified bank employees.
