foreclosures

Map showing foreclosures in Boston in 2008.

The Boston Business Journal reports:

Massachusetts was one of Washington Mutual Inc.'s biggest markets for risky subprime mortgages, whose skyrocketing defaults contributed to the failure of the nation’s largest savings and loan. ...

Open Media Boston reports on an attempt to keep a resident of a foreclosed condo at 76 Perrin St. from being evicted.

Some 50 activists from City Life/Vida Urbana showed up, and six chained themselves to the front and rear entrances, but Boston Police cut the chains, arrested four of the six and then stood guard as a moving company got rid of the woman's belongings. She says she had offered to pay rent to current owner Bank of America, but the bank said no.

Councilor Mike Ross reports the council passed a home-rule petition yesterday:

... When a foreclosure occurs on a rental property, this bill gives the renter the right to stay in their home, so long as they continue to pay the rent they were paying prior to foreclosure, and assuming they remain a tenant in good standing. This situation remains until one of two things happen:

1. The lender sells the foreclosed property to a new landlord or owner, who has the right to select their own tenants if they so choose; or

2. The lender still owns the property upon arrival of the law's sunset clause, which is two years from passage (with the possibility of a third year extension if approved by the council and mayor).

The lender is required to notify the tenants of the foreclosure, so the tenant doesn't continue to pay rent to the old owner - something which we have seen happen quite frequently. ...

The proposal needs approval of the state Legislature and the governor to become law. Ross says some 2,000 apartments in Boston have been affected by foreclosure over the past year and that he expects that number to rise, with Roxbury, Mattapan, Dorchester and Hyde Park being hit hardest.