Lowell Deeds

The latest on real estate recordings and new technology from the Middlesex North Registry of Deeds in Lowell

October 15, 2007

Patrick’s Plan

by @ 8:03 am. Filed under Real Estate

There may be some relief in sight for homeowners with high mortgage payments and low property values. Governor Deval Patrick is proposing a program that he believes will slow down the soaring number of foreclosure in Massachusetts. Patrick wants lenders to accept “a short sale”. A “short sale” is when a bank agrees to accept less than the original amount borrowed on a loan. Faced with upward interest rate adjustments causing higher mortgage payments many people can no longer afford their homes. In today’s depressed housing market many homeowners owe more than the decreased value of the property, hence they are unable to sell. By banks accepting “short sales” homeowners can unload their property before facing foreclosure. This is not a new approach to dealing with the housing crisis. The practice was also employed during the last housing slump. Patrick is proposing a pilot program in Massachusetts cities most effected. Currently under consideration to take part in the first phase of the plan are Lawrence, Springfield, Boston, Brockton, New Bedford and Worcester. The big hurdle?…The Commonwealth does not have the legal authority to make lenders cooperate and accept “short sales”. The governor will release more details on his plan before the end of this week.

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