Foreclosure Virus Spares None
On Hendry Street, Dorchester heads of city government arrived in a futile attempt to stop the spread of the foreclosure virus. But when the mayor, police commissioner and the housing inspector arrived all was over. Mayor Menino standing in front of a boarded up three decker house on Hendry Street promised that he would do his level best to restore the health of the region. For this the city fathers will have to seize the property tax on grounds of delinquency. But unfortunately most of the houses are not encumbered with unpaid taxes. A different aggressive approach will have to be taken.
Nearly a dozen properties in Hendry, Coleman and Clarkson streets dotting a modest to low income locality that the Menino authorities had ear marked for public safety, playground facilities and economic upliftment were listed on foreclosure postings. This has been going on for the last five years.
This region is known for being a high crime area where money plays around. TV crews and troops withdraw simultaneously. But this time it seems that the mayor is deadly serious about his ‘foreclosure intervention team’. The chief attorney of the city, William Sinnott is trying to see if the banking officials of the state can freeze the assets or take off the licenses of the mortgage lenders who refuse to cooperate. Working with him are other city officials to find out if behind the scenes fraud or such activity is taking place.
In 2007 nearly 700 properties in Boston were clubbed down by foreclosures. A hot debate is raging whether greedy borrowers or predatory lenders are to be blamed. The apprehension is that another 2,000 house owners are about to face further mortgage rate rises. Thus many more will meet the same fate as those of Hendry street.
There are indications that efforts are paying off and more mortgage lenders are coming forward with a helping hand. One of them is the mortgage giant Wells Fargo. But there is a lack of communication between the servicers and the borrowers. In 1960 bad mortgages had sent out the same bad smells in Dorchester. It took decades for the mess to be cleared up. Menino understands this. Crime rise is associated with abandoned empty houses. The plumbing and electricity fittings are stripped off and the houses becomes dens for vagrants and prostitutes. This brings down the overall real estate market.
