MA Plans Debt Relief

The first quarter of 2008 has been bad for Massachusetts home owners.

There's political help on the horizon. There are all sorts of suggestions for stemming the rising tide of foreclosures.

State Sens. Harriette L. Chandler, D-Worcester, and Edward M. Augustus Jr., D-Worcester, said Friday they have signed on to a state legislative initiative to give homeowners more of a fighting chance when facing foreclosure.

A package of three Senate bills would mandate a judicial review before a home mortgage foreclosure could be approved, provide a six-month moratorium on foreclosures involving subprime mortgages, and prohibit eviction of tenants when their landlord’s property gets foreclosed.

 

Mrs. Chandler said the foreclosure crisis is mushrooming in Worcester County and current trends are expected to worsen for the rest of the year. While the protective steps called for in the bills would slow the foreclosure process and keep some families in their homes as foreclosures proceed, she said, broader long-term solutions are also needed.

“In order to protect families and our economy, we must act swiftly to provide our residents with the tools necessary to protect their rights and allow the commonwealth to develop a more comprehensive solution to the crisis,” she said in announcing her support for the legislative proposal.

Mr. Augustus said any relief from foreclosure would be welcomed by working families and individuals struggling to keep their homes. The proposed laws would give them breathing room needed to deal successfully with the mortgage crises they are facing.

The three bills, he said, would provide a temporary moratorium on foreclosures for subprime mortgages and hold off evictions of tenants whose rents are paid up when their landlords face foreclosure.

Supporters of the bill said 29 states already require court approvals before a foreclosure proceeds.

A special commission would also be formed to make more legislative recommendations as the crisis proceeds.

The lawmakers said that in the last five weeks, foreclosures have escalated in Worcester County, with 548 homes put up for auction and another 658 facing petitions for foreclosure. That is more than any other county in the state, they said.