Robert DeLeo, speaker of the Massachusetts House of Representatives

The Massachusetts House of Representatives passed legislation yesterday aimed at keeping tenants in foreclosed properties.

Under the House legislation, lenders who take properties through foreclosure must post contact information, including an address where tenants can mail rent checks, within 30 days of foreclosure. A lender cannot evict a tenant for failure to pay rent unless it has provided this notice.

The bill also establishes a new local property tax exemption for charitable organizations that acquire foreclosed properties with plans to create low and moderate income affordable housing. The provision exempts charitable organizations from property taxes until they sell or rent the property, for up to seven years.

The House also voted to extend the right to cure period, a window allowing lenders and homeowners to work out a new payment plan to avoid foreclosure, to 150 days. The previous right to cure window was 90 days. Additionally, the bill allows the 150-day right to cure period to be granted once every three years. Currently, the 90-day right to cure period is available once every five years.

In a statement, House Speaker Robert DeLeo said, “As folks across the Commonwealth continue to struggle to make ends meet, this bill will institute measures to help keep our residents in their homes. In these uncertain fiscal times, this bill aims to provide a degree of stability to the families of Massachusetts.”

“When a property lays vacant and abandoned it is an invitation to drug addicts and vandals, and can be a general eyesore to a whole neighborhood,” added House Committee on Ways and Means Chairman Charles Murphy. “With this legislation, we will help keep families in their homes and take reasonable steps to hold accountable those persons that committed fraudulent acts that led to much of the turmoil homeowners are now facing.”

The bill now heads to the Senate for reconciliation.

Mass. House Toughens Foreclosure Eviction Rules

by Banker & Tradesman time to read: 1 min
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