Massachusetts Bars Foreclosures
Saturday, June 2nd, 2007No less a person than the Attorney General of Massachusetts, Coakley, came down heavily against pretentious rescue teams that tempt house owners facing foreclosures to sign over their ownership to temporary buyers nursing a false hope that in the long run they will not lose the roof above their heads.
The recent surge in foreclosures compelled the office of the Attorney General to take emergency measures against clever tricks that are impoverishing many. The borrowers income is often falsely inflated to make matters simple. As many as four lawsuits have been filed against firms that tempted owners to hand over property deeds to ‘straw purchasers’. Reviews show that recently there have been several cases of similar firms that never keep their promises. The Consumer Protection Division of the Attorney Generals’ office is of the opinion that in fact there has been no single instance of them coming forward with a genuine helping hand. These firms are riddled with fraud and abuse. About a dozen of these so-called rescuers operated in Massachusetts.
Coakley’s is however in the dark about similar steps being taken in other states.
The ban would spell civil penalties only for those firms that worked for profit. It will not hamper the activities of genuine non-profit housing groups. Temporary ownership is taken to allow the victims time to solve the problem. A way out is to allow property transfers to extended family groups.
The regulation did not come in the way of legitimate bailouts wherein the lenders relax terms of repayment and offer new mortgages, which does not involve surrender of ownership.
Massachusetts Mortgage Bankers Association welcomed the move of the Attorney General and had no reservations about it curbing legitimate operations.
Coakley said that she had to use emergency powers to impose immediate bans on foreclosure takeovers because of an alarming growth of such scams. There was a jump of 70% from last year in the state. Massachusetts had always had a low rating but this high brought it at par with the national ratings. After ninety days the ban could be made into a law by state legislators following public hearings.
Coakley’s office is also engaging voluntary attorneys to help foreclosure sufferers.
The Attorney General, Secretary of State and other lawmakers have suggested a string of legislations to check foreclosures and its snowballing effect on real estate prices and sub-prime facilities for helping needy borrowers.
No less a person than the Attorney General of Massachusetts, Coakley, came down heavily against pretentious rescue teams that tempt house owners facing foreclosures to sign over their ownership to temporary buyers nursing a false hope that in the long run they will not lose the roof above their heads.
The recent surge in foreclosures compelled the office of the Attorney General to take emergency measures against clever tricks that are impoverishing many. The borrowers income is often falsely inflated to make matters simple. As many as four lawsuits have been filed against firms that tempted owners to hand over property deeds to ‘straw purchasers’. Reviews show that recently there have been several cases of similar firms that never keep their promises. The Consumer Protection Division of the Attorney Generals’ office is of the opinion that in fact there has been no single instance of them coming forward with a genuine helping hand. These firms are riddled with fraud and abuse. About a dozen of these so-called rescuers operated in Massachusetts.
Coakley’s is however in the dark about similar steps being taken in other states.
The ban would spell civil penalties only for those firms that worked for profit. It will not hamper the activities of genuine non-profit housing groups. Temporary ownership is taken to allow the victims time to solve the problem. A way out is to allow property transfers to extended family groups.
The regulation did not come in the way of legitimate bailouts wherein the lenders relax terms of repayment and offer new mortgages, which does not involve surrender of ownership.
Massachusetts Mortgage Bankers Association welcomed the move of the Attorney General and had no reservations about it curbing legitimate operations.
Coakley said that she had to use emergency powers to impose immediate bans on foreclosure takeovers because of an alarming growth of such scams. There was a jump of 70% from last year in the state. Massachusetts had always had a low rating but this high brought it at par with the national ratings. After ninety days the ban could be made into a law by state legislators following public hearings.
Coakley’s office is also engaging voluntary attorneys to help foreclosure sufferers.
The Attorney General, Secretary of State and other lawmakers have suggested a string of legislations to check foreclosures and its snowballing effect on real estate prices and sub-prime facilities for helping needy borrowers.
