Received thius e-mail from Councilor in response to how passage of the current home rules petition regarding foreclosure will help. Thanks Councilor Rosen.Federal, state and municipal governments are taking steps to begin to put a tourniquet on the hemorrhaging of foreclosures in this country. The US Senate is working diligently on a $300 billion foreclosure rescue program. The Massachusetts legislature is considering foreclosure legislation similar to home rule petitions submitted by both Boston and Worcester. Lawmakers see the need to address this national crisis, which has had a devastating effect on both poor and middle class homeowners and renters. While many of these mortgage loan problems were brought about by predatory and unscrupulous lenders, others were the result of a lack of information, legal assistance, and common sense by some individuals and families who did not realize or who ignored how difficult it would be for them to make ballooning ARM mortgage payments in the future.
The Worcester City Council, on an 11-0 vote, rather than wait for the Commonwealth to pass the foreclosure legislation in front of it, seeks to take action similar to that already proposed by the city of Boston. Our Home Rule petitions request a 6-month moratorium to slow the tidal wave of foreclosures and give homeowners a little more time to get the right advice and make the best decisions in an effort to save their homes. They request that tenants and families who, through no fault of their own, are in danger of being evicted have some reasonable protections through a just-cause eviction process. And finally, they ask that homeowners be given their day in court just in case judicial steps and intervention can realize a new agreement between homeowner and lender. Perfect legislation? No. But helpful to Worcester, its homeowners, residential and commercial taxpayers, I think and hope so.
Besides homeowners and tenants, their children and extended families, having their lives seriously disrupted, neighborhoods often become blighted as foreclosures occur. As soon as the boarded windows spring up, the economic and emotional well-being of the entire neighborhood goes down. and the safety, economic and emotional well-being of the entire neighborhood can be compromised. Squatters sometimes take up residence, houses are vandalized, copper tubing removed, and windows shattered. Often the lender is oblivious to the condition of the property that they now own. Values and demand for surrounding properties in which neighbors have significant investments go down. Further, the economic ramifications of foreclosure include the loss of tax revenue; increased policing, fire department activity (due to arson), and an increased need for social services.
Worcester has been especially hard hit by the foreclosure tsunami. I understand that some homeowners have brought their troubles upon themselves by making unwise and uneducated decisions. However, many homeowners have fallen victim to a drastic change in career and financial status while others were prey to predatory lenders. In any case, the legislation which Worcester is proposing hopefully will offer some help, some relief and some time to homeowners, tenants and mortgage lenders so affected by this national crisis.