The localities of Massachusetts are tired of waiting for state and federal actions that will hopefully prevent foreclosure. They are now trying to combat the housing problem on their own.
Disappointed to what appears to be a lack of urgency, the local governments of the Bay State cities are trying to stop bank repossessions and protect households that are victims of predatory lenders. They feel that the government is not baring its teeth in trying to save their citizens from foreclosure.
Boston, Lawrence and Worcester city councils have been discussing petitions that aim to stop foreclosure and stop the devastating horror that is haunting urban neighborhoods since 2008. A Boston Council measure wants to create a mediation proceeding for homeowners with foreclosure problems and their lenders.
The Massachusetts Alliance Against Predatory Lending says that Chelsea and Springfield city councils have came up with resolutions that would protect renters from eviction, necessitate court agreement for repossessions and put into operation a 6-month suspension on foreclosures by predatory lenders. Meanwhile, there are 2,400 homes in foreclosure in Brockton that is why the Brockton Interfaith Community rallied to convince city councilors to pass their petition for a state-wide foreclosure prevention legislation.
Grace Ross, coordinator to the Massachusetts Alliance Against Predatory Lending thinks that the legislature is moving slower than the foreclosure rate. There is only a state bill that protects renters of foreclosed homes. So, they have decided to take some actions to push state policies that they think are broad enough to solve the Massachusetts foreclosure problem.
Spokesperson to Boston Mayor Menino says that they cannot feel that the Legislature sees the level of anxiety they are feeling.
But the Senate says otherwise. They claim that they have just approved a bill that will prevent foreclosure and stop predatory lending. The Senate is working on bills and legislation that could actually do something to help hard hit areas.
The Massachusetts foreclosure actions intensified when the Senate refused to pass the bill that allow judges to revise loans for foreclosure homeowners whose lenders fail to give good loan modifications.
The $75 billion worth Troubled Asset Relief Program by the Obama Administration hopes to help up to 5 million troubled homeowners by financing lower interest rates. Since February, the project has helped 2,150 Fannie Mae borrowers and 1,500 Freddie Macs. It is just sad that this project is limited for Fannie and Freddie borrowers only. Plus, it is too slow and voluntary for the lenders.
Massachusetts foreclosure is said to be down at 755 or 43.8 percent lower than April 2008. But with increasing job loss, homes even with prime loans will be trying to prevent foreclosure.
One of the worst hit areas is Worcester, one of Massachusetts assets. This caused more panic.
The local leaders think that this is not the time to be too critical, they need an emergency plan to prevent foreclosure, and they need it now. If the state or the federal law cannot move fast, they have to do it on their own.