The MA Attorney General has enacted a "freeze" on foreclosures in MA for 90 days, starting May 1, 2008. I have ben told that the attorney general found that most people in danger of foreclosure (up to 70% of them) either don't contact the lender or won't contact the lender to try to work out an arrangement/solution. So, the office took steps to make sure that the lenders are doing all they can to get owners to talk to them and work something out, before the foreclosure can proceed.
The effort is to try and minimize the number of foreclosures by communication and work out strategies. The amended MA General Laws of Chapter 244-14a and Chapter 244-35a went into affect on May 1. This will slow the number of foreclosures now, but will probably flood the market six months from now when the delayed foreclosures start coming on the market.
Many people are finding that their contacts, the servicer of the loan, don't really have that many options to work out different payments. The staff of workout specialists that helped people through the 1980s real estate corrections, aren't manning the phones anymore. Coupled with the inexperienced phone staff is the fact that most lending has become more computerized. Many of the people on the phone aren't the owners of the loan and only have limited authority and/or options to "workout" a loan.
There is also some very interesting "stuff" starting to fly when some "lenders" try to foreclose on a property. Banks started using pooling systems to collect monthly payments. Sometimes the ones doing the foreclosing aren't the ones who own the note and they can't prove they own the note. This can be a reason to stop a foreclosure. There are already federal judges stopping foreclosures for this reason.
If you want to study this and see what you can learn, do a search for "Lost-Note Affidavit". Be ready for some very interesting and eye popping information.
And as always, if you are a listing agent, make sure you can be found on REindex.com, The Site Engine(sm)
Heath Coker, Associate Broker
Robert Paul Properties
www.CapeGroup.com / email@example.com
508-274-5613 Licensed in MA
Its a beautiful day on Cape Cod!
@CapeGroup Skype: heath.coker