Foreclosure Prevention Law Takes Effect in Massachusetts

Last August, Massachusetts Governor Deval Patrick signed a bill that contains certain requirements to give more protection to struggling homeowners.

2013-01-09

January 09, 2013 (Press-News.org) Foreclosure prevention law takes effect in Massachusetts

Last August, Massachusetts Governor Deval Patrick signed a bill that contains certain requirements to give more protection to struggling homeowners. For example, if a loan is considered risky, the lender must offer modifications to the borrower before foreclosure. Also, home mortgage lenders are banned from pursuing foreclosure if they do not have the correct documentation.

The major provision that will help many homeowners requires the lender to determine whether the net value of modifying the loan exceeds the anticipated amount that the lender will recover from a foreclosure. If it is, then the lender must offer a modification to the homeowner.

Law aims to prevent foreclosure

Foreclosures are a big problem in Massachusetts. The town of Springfield alone saw 305 foreclosure deeds from the beginning of the year to August. Hampden County saw 604 foreclosure deeds and Franklin County saw 73.

The law took effect in November, so the benefits are still to be seen. The state undersecretary of Consumer Protection and Business Regulation, Barbara T. Anthony, says that the law is good for both the banks and homeowners because it makes the banks offer a modification if it is the best deal for them, and then the homeowner gets to stay in his or her house. The process of foreclosure really is expensive for the banks, and the law recognizes this.

The new law is also good for the community because more people will be able to stay in their homes, and the neighbors and schools will be stable.

Some lenders have already been working with the borrowers to modify their loans instead of pursuing foreclosure right away. Some nonprofit groups in Massachusetts have also been purchasing homes via short sale -- purchasing homes for less than what is owed on the mortgage and allowing the lender keeps all of the profits. These nonprofit then sells the home back to the homeowner with a 30-year fixed-rate mortgage.

Not all banks agree with new law

Some banks do not favor the new law and do not agree with Anthony that it is good for them, too. They believe that if homeowners can easily get their mortgages modified, they will not have an incentive to try to make their payments because they know they can get a modification instead of being foreclosed upon. Some banks just do not see this as a good business strategy.

Homeowners struggling to keep up with their payments should contact an attorney to help them determine what their options are and make sure that they are being treated fairly.

Article provided by Law Offices of Kenneth E. Lindauer
Visit us at http://www.lindauerlaw.com

ELSE PRESS RELEASES FROM THIS DATE:

Does Homeowners Insurance Cover Fire Damage?

2013-01-09

Does homeowners insurance cover fire damage? This fall, wildfires in the Wenatchee National Forest to the northeast of Kings County, Washington, caused thousands of acres to burn and threatened hundreds of homes. Unfortunately, some of these succumbed to the blaze, leading to lots of clean-up and rebuilding for homeowners. Some homeowners may think they must go it alone with covering costs of fire damage. However, most homeowners' insurance policies cover fire and smoke damage and even total destruction from fires. Filing a claim can be complicated, so it is important ...

A Living Will: An Important But Often Overlooked Estate Planning Document

2013-01-09

A living will: an important but often overlooked estate planning document When most people think of estate planning, they think of preparing a document like a will or perhaps a trust. However, when considering their estate plan, many people fail to plan for the possibility that they may be unable to communicate with their doctors about the care that they wish to receive. It is therefore important that Pennsylvania residents consider including an advance health care declaration among their estate planning documents. What is an advance health care declaration? An ...

Some Public Benefits Impact SSDI Amounts

2013-01-09

Some public benefits impact SSDI amounts Being disabled and unable to earn a living wage can be discouraging. New Jersey residents who are receiving payments from Social Security Disability Insurance rely on these benefits for the necessities of day-to-day life. Anything that might reduce the amount of SSDI benefits is a matter for concern. Benefits may be affected by other payments Recipients of SSDI need to be aware that the amount of SSDI benefits they receive could be diminished if they are receiving benefits from another source. People who are receiving Supplemental ...

Appealing a Claim for Disability

2013-01-09

Appealing a claim for disability People in New Jersey who live with disabilities may be eligible for financial assistance from the federal Social Security Disability Insurance or Supplemental Security Income programs. Receiving assistance is not automatic, and for some people it can be a long road. What to do when a claim is denied The first step in obtaining help from SSDI or SSI is to file a claim. The Social Security Administration will decide whether or not to grant benefits and will inform the claimant by mail. The letter will explain reasons for denying a ...

Credit Scores and Getting Out of Debt

2013-01-09

Credit scores and getting out of debt Millions of people use credit cards every day for a variety of purchases such as groceries, clothing and entertainment, and many of them are struggling with credit card debt. That debt can greatly affect people's credit scores to an extent that they may not be aware. Surprising behaviors thataffect credit scores Credit scores fluctuate more than one would think. VantageScore Solutions reports that about 70 percent of credit scores can change, up or down, by about 20 points during a 90-day time span. In fact, consumers may be ...

The Division of Property in a Divorce

2013-01-09

The division of property in a divorce Many people going through a divorce have questions about how property will be divided between spouses. How property is divided during a person's divorce depends on a number of factors that are unique to each person's situation. Although going through a divorce is an emotionally difficult time, knowing what to expect in terms of property division can help ease some of the anxiety. In some cases, people who are getting a divorce are able to do so amicably, and issues of property division can be decided between the spouses. In other ...

Wisconsin Man Killed in Motorcycle Accident

2013-01-09

Wisconsin man killed in motorcycle accident Recently, a man from Milwaukee was killed when a car hit his motorcycle in Washington County. The man was only 27 years old. He died in the hospital. The driver that hit him left the crash uninjured. There were 4,502 motorcyclists killed in 2010, and 82,000 more were injured in accidents. There are many things motorcyclists can do to stay safe on the road, but drivers need to do their part as well to make sure they are looking out for motorcyclists and sharing the road. Motorcyclists travel fewest miles but have high ...

Milwaukee County Installing LED Signs on Highways

2013-01-09

Milwaukee County installing LED signs on highways Wisconsin residents in Milwaukee County saw an average of 33 occurrences of wrong-way driving per year from 2006 to 2012. Accidents resulting from these events are needless and unnecessary. They are also very dangerous because cars are heading straight at each other head-on at high speeds. The Milwaukee County Sheriff's Office, along with the Wisconsin Department of Transportation, is trying to prevent these types of accidents by adding LED warnings signs and real-time notification alerts to the county's roadways. Blinking ...

The Impact of a Medical Safety Device System

2013-01-09

The Impact of a Medical Safety Device System The U.S. Food and Drug Administration recently developed a safety system that will eventually place a label with a unique identification number on every medical device coming into the market. This procedure holds promise to revamp the current system and create a much more efficient process for both patients and health care providers should those medical devices malfunction or otherwise harm patients. New Medical Device Identification System In addition to the product's batch and serial number, the new label will also ...

Planning For Nursing Home And Long-term Care

2013-01-09

Planning for nursing home and long-term care According to the U.S. Department of Health and Human Services, anyone aged 65 or older will have a 40 percent chance of needing nursing home care. Medicare estimates that over 12 million Americans will need some form of long-term care by 2020. The baby boomer generation is approaching the time when many A Metlife survey found that the average daily rate nationwide is an astounding $248 for a single bed. A semi-private room is not significantly lower at $222 per month. Assisted living facilities are also expensive, costing ...

Foreclosure Prevention Law Takes Effect in Massachusetts

ELSE PRESS RELEASES FROM THIS DATE:

LAST 30 PRESS RELEASES: