It may seem hard to believe, but it has been seven years since the financial crisis of 2007. The repercussions from that crisis were felt in various industries, including the housing market, and long-lasting. Indeed, the economic recovery has been years in the coming.
In recent years, lenders may have allowed a grace period for homeowners struggling with delinquent mortgage payments. However, that safety net has apparently been removed, considering that foreclosure filings in Massachusetts have increased by 91 percent from October 2013. In fact, foreclosures have been on the rise for eight consecutive months in the state.
Although a lender may have a legal right to collect on its secured interest, many equitable considerations also come into play what the property at issue is a principal residence. For that reason, state lawmakers have codified the procedures for foreclosure and redemption of mortgages in Massachusetts. For both buyers and sellers, it is important to consult with a real estate attorney to plan for this contingency.
Massachusetts Attorney General Martha Coakley has become involved in an area of real estate more typically reserved for real estate attorneys: foreclosure sales.
Although a real estate attorney is usually called upon in the front-end of a deal, a recent story suggests that a legal professional could also provide counsel to residential or commercial owners facing foreclosure.
According to recent data, the number of foreclosures in Massachusetts may be declining.
When Massachusetts residents fall behind on their mortgages they have many reputable options to turn to for finding financial guidance and support. Unfortunately, some dishonest individuals and organizations do exist and prey on struggling homeowners when they are most in need of help. Often times victims do not know they have been scammed until it is too late to save their residences.
There are always risks inherent to buying or selling properties on the residential real estate market but most Massachusetts residents believe that once they get through the closing process, the negotiating drama should end. For some individuals who purchased foreclosed properties in the past, new issues arose when the Massachusetts Supreme Judicial Court voided many of those sales.
There is no question that many Worcester families have been hit with the overwhelmingly hard realities of foreclosure. As previously discussed on this blog, the community has formed groups and proposed anti-foreclosure measures specifically aimed at keeping local families in their homes. Other communities around the country have tried similar methods of stopping foreclosures and a few have even employed their municipalities' property reclamation authority to win the battle.
In what has become an ongoing debate between the city council and the city manager, the city of Worcester has taken one more step toward approving a mandatory foreclosure mediation program for some struggling homeowners and their lenders.