June 30, 2008

Home-Rule Foreclosure Law

Article in the newspaper today, click here. This makes no sense at all. If there was predatory foreclosing happening then I would agree with a moratorium, but that is not the case right now.

Loss mitigation units of mortgage companies are bending over backwards to come up with solutions to help the current home-owner. The last thing mortgage holder wants is another foreclosed property. At the same time there are some home-owners, who have just plain given up. Now the bank does not even have the ability to take owenership of the house for six months if this is passed.

"Just cause" evictions only. Why do we not hold the same standard for the three tenants next to the Hanover? Answer, they are tenants at wills. That means either party can end the tenancy with a 30 day notice. Do we really want the City of Worcester deciding on whether someone can exercise their own property rights?

Will this tighten the already tight credit markets in Worcester if the City of Worcester passes? One would think so when I read that a mandated review by the Superior Court or Housing of the foreclosure that will allow the judge to modify the mortgages?

Whatever happened to responsibility? There is a reason you need to sign your name 20 times to hundreds of pages of paperwork when you got the mortgage. If you do not understand everything then you should have hired a lawyer.

Everyone has good intentions on this but this idea makes no sense and will only make the situation worse.


Anonymous said...

I wonder if the banks will now be forced to begin the foreclosure process immediately, rather than try to work something out with the borrower?

Bill Randell said...


I also wonder who is to determine whether or not the underlying mortgage is "sub-prime".


Bill Randell said...


You make a great point. Lets just say I was running the loss mitigation unit for a bank, I would direct people in my unit to start foreclosure on everyone now even if they thought there was potential that they could work it, out of fear that this passage would delay any future foreclosude by 6 months.


Anonymous said...

Where's the home rule petition for my Bank Of America stock that has dropped from 54 to 24 in 10 months. Should I petition the council for my money back? Christ Almighty!

Let us examine most sub-prime "victims". What I continually and regularly see in this crisis are so called victims who have used their homes like they were ATM machines and then lived high off the hog for 2-3 years and now they are typically living in their 3 decker and still collecting the 2 rents and remitting nothing to the bank or the city and driving a black Expedition or Navigator with $5,000rims.

If anything the city s/b shutting off their water for non payment which would help expedite emptying out these 3 deckers and cleaning up the foreclosure mess. (yes many foreclosures involve homes other than 3 deckers, but the 3 deckers are often the most troublesome).

Wait until the heating season starts and all these folks who had their gas shut off just up and move out anyway. The marketplace will cure this crisis w/o intervention form our city council.

Besides the city council s/b concerned with more pressing & important issues like the 13% of city workers who are out on Injured on Duty Status and those who arent IOD are meanwhile taking 10 "sick" days on average or the pension and back sick pay liabilities that run in the 100"s of millions.

This petition is just another shopping cart or Yellow Boxes Bullsh+t that these so called couciloors should not be involved.

I predict this will not see the light of day on Beacon Hill.

And then we have Chief Dio editorializing about the need for change to the sprinkler laws under the guise of worrying about the civilian occupants of commercial buildings....meanwhile how many in his dept are IOD or how many will call in sick for a 4 day 4th July weekend?

Anonymous said...

I almost forgot.......then we have our city housing director ( I never knew the City had a housing director??) quoted above the fold on Page 1 today ( Monday) to the effect:

"The only one who can really tell them to move is Housing Court"

FWIW....... any landlord can tell his tenants to move with a 30 day notice or a 10 notice to quit.......depending on the circumstances.............THEN if they dont move the housing court can "tell them to move".....a.k.a. EVICTION and or summary process.

Our public officials should get their facts straight.

54 foreclosures in May?? Please keep in mind that a legal notice in the paper to foreclose is not a foreclosure until months later the lender actually takes title

Bill Randell said...

The more I read this the more it makes no sense.

Who is to determine which mortgage is sub-prime?

What if the bank merely increase a paying tenant's rent to $3,000 per month? Tenant will not pay and the bank can now evict for cause.

Here is a classic example where people are merely reacting trying to help tenants who have been caught in the middle of this. Although there are only good intentions here, none of these ordinances if passed will help anyone.

Anonymous said...

Maybe the city council can pass also lower the price of gasoline.

Simply roll back the prices at all pumps in Worcester to $2.00/gallon or less.

That should have a similar effect.

Bill Randell said...


How about smokers who can not afford this latest tax increase? Maybe we can have the local courts intervene?


Anonymous said...

The best one yet:

A home rule petition that requires Jetblue to run daily, non-stop flights from Worcester to Myrtle Beach.

Anonymous said...

could our airport anony. be the same lad who wrote the airport piece last week in "In City"

Anonymous said...

How about a 6 month moratorium or a 6 month waiver on property tax payments to the city.

How about a 6 month moratorium on tenant rent payments for all property located on Dale St & Castle St?

My tax bill just arrived this morning.

The hypocrites are so bad that we all have to prepay 2 months worth of taxes every quarter.

Thank God we only have to hear from them twice in the next 2 months as council goes on summer schedule. Maybe this hiatus will effectively kill the petition.