Wednesday, June 6, 2012
Anti-Foreclosure Law Rally on the Statehouse Steps 6/6/2012
Vida Urbana and Occupy Boston want you to know; "within days, (today) the MA State Legislature will vote on an anti-foreclosure law. But the legislation currently being considered is weak: It won't apply to the vast majority of foreclosures, it doesn't force banks to mediate face to face prior to foreclosure, doesn't prevent unnecessary vacancies..."
"The proposed bill is called An Act Preventing Unlawful and Unnecessary Foreclosures. If passed, it would hold banks to a new standard – requiring lenders to determine if the cost of foreclosure is less than the cost of loan modification. According to Grace Ross, a member of the Worcester Anti-Foreclosure Team, that is rarely the case.
“We know there are studies out there that they lose a lot less money if they modify loans,“ said Ross.
While Ross sees this legislation as a step in the right direction, she claims the current form of the bill could actually make the process harder for homeowners.
“Banks can sign a document saying they went through the appropriate foreclosure process and they wouldn’t have to prove that in court,” Ross said. “That would undermine the Attorney General’s new standard and hurt a whole slew of new people.”
And that isn’t Ross’s only problem with the legislation. She says it neglects to outline any formal notification process. In other words, nothing will be done to notify homeowners who could use the bill as leverage for loan modification or to secure more time for negotiation.
The Attorney General’s Office says the most important issue is getting the bill passed."
MGL c.244 Foreclosure and Redemption of Mortgages.
MGL c.260, s. 33 Limitation of mortgage foreclosures
209 CMR 56: Right to Cure a Mortgage Default (with form for notice)
940 CMR 25: Foreclosure Rescue Transactions and Foreclosure-Related Services
Additional details via Mass Alliance Against Predatory Lending