Lowell Deeds

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

December 18, 2008

A Rational Policy Towards Tenants

by @ 11:47 am. Filed under Real Estate

One of the most frustrating things about the spike in foreclosures has been the industry-wide practice of lending institutions that foreclose and come into possession of properties (something that happens in almost every foreclosure) immediately evicting all tenants, whether they are current in their rent or not. There are several reasons why lenders-in-possession do this: a vacant building is more marketable; banks don’t want to be in the landlord business; and not having tenants cuts down on the exposure to liability. From a community perspective, however, this policy is extremely damaging. Vacant homes become crime magnets that drag down the value of neighboring properties. Displaced families often have difficulty finding comparable (or any) replacement quarters thereby contributing to homelessness. Children of tenants are often uprooted from school and forced to transfer to another school or school system, disrupting a community’s education system. (Many educators in Lowell will say privately that if you could pull out the MCAS scores of the children who remain in the same schools throughout their careers, the test scores would match many of the surrounding suburbs). Now, Fannie Mae has announced that it will cease this automatic eviction practice. Hopefully other lenders will follow its lead.

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