Attorney General Martha Coakley’s office has filed legislation as part of her office’s continued effort at tackling the ongoing mortgage foreclosure crisis that has gripped the commonwealth.
The first piece of legislation, An Act to Require Commercially Reasonable Efforts to Avoid Foreclosure, filed with Sen. Susan Tucker and Rep. Steven Walsh, would mandate loan modifications in certain circumstances and aims to prevent additional foreclosures.
The second piece of legislation, An Act Regarding Community Leadership, Neighborhood Revitalization and Urban Violence Protection, filed by Attorney General Coakley, along with Sen. James Timilty and Rep. Barry Finegold, is designed to address the problem of abandoned properties that result from foreclosures, and the negative impacts they have on the commonwealth’s neighborhoods and economy. Coakley announced the legislation in a speech this morning before the Greater Boston Chamber of Commerce Government Affairs Forum.
"We hope that this legislation can provide for Massachusetts some relief while we wait for action at the national level. The effects of the housing crisis have rippled through all sectors of our economy, and until we tackle the underlying problem of the subprime lending crisis, no bail out package, no matter how big, can appropriately stabilize our economy," said Coakley.
The legislation would do two things. First, it would create a two-year pilot program establishing a statewide abandoned housing registry housed within the Attorney General’s office. The registry would be known as the Massachusetts Abandoned Property Registry, or MAP, and would serve as a state-wide registry for vacant and foreclosed properties. Under the legislation, all property owners, including lenders, trustees, and service companies, would be required to register and properly maintain vacant and foreclosed properties, according to a statement from the Attorney General.
Second, the legislation would establish a statewide Second-Hand Metal Registry. One of the public safety side effects of the foreclosure crisis is the increase in copper and scrap metal being stolen from abandoned properties. An individual who steals scrap metal from a property is likely selling it to a junk dealer for quick cash. Such illegal practices are roadblocks to fighting the foreclosure crisis because they prevent homes from selling and therefore have a detrimental effect on our neighborhoods.
