Foreclosure Monitor - Mass Legal Services

Massachusetts
Foreclosure Monitor
Third Quarter 2008
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A quarterly report for public officials and community leaders working to address the foreclosure crisis in Massachusetts
MESAMMIAMMeSt7
Market Overview
Massachusetts Housing Inventory Being Absorbed; Modest Price Decline Continues
Despite gloomy descriptions of the housing market, home prices are increasing in many states. The
Federal Housing Finance Agency reported that prices increased in 30 states from Q2 2007 to Q2 2008,
with the largest increase in Oklahoma (4.9 percent). Massachusetts came in 43rd, with a decrease of
2.9 percent. As expected, Florida (-12 percent), Nevada (-14 percent) and California (-16 percent) had
the largest price decreases. A recent Business Week analysis found that in Q2 2008, 24 percent of
sales in Massachusetts were of distressed properties, up from 8 percent the year before. Distressed
sales were a higher percentage of sales in seven states, with California topping the list (41 percent ).
The Massachusetts Association of Realtors (MAR) reported that September sales prices were down
13.2 percent from a year ago for single-family homes, and down 7.3 percent for condominiums. In more
promising news, MAR also reported 10.2 months inventory of homes on the market in September, down
from 12.0 months in September 2007, and well below the recent high of 16.6 months in February. MAR
considers inventories of 7.5 months to 8.5 months to be a balanced market.
Foreclosures in Massachusetts Increased 72 percent from 2007 to 2008
The Warren Group recently announced that more than 9,609 foreclosure deeds had been filed in Massachusetts in the first three quarters of 2008, up from 5,593 the
Loans with Forelcosure Initiation in the Quarter,
year before, a 72 percent increase. A foreclosure deed is the United States, New England and Massachusetts,
final step in the foreclosure process. High quality comparable
through Q2-2008
data on foreclosure deeds from across the country is not avail- 1.4%
1 2%
able. The Federal Reserve Bank of Boston recently reported
1.0%
that while the percentage of Massachusetts loans in foreclo0.8%
sure mirrored the nation in 2007, in Q2 2008 the rate fell in Mas0.6%
sachusetts as a new 90 day right to cure took affect, delaying OA.%
foreclosure proceedings. Mortgage Bankers Association/Haver o
2%
Analytics 60 day + delinquency data paints a gloomier picture,
0.0%
§
with 17 percent of Massachusetts sub-prime adjustable loans in g
0 0 000
00 0
a i7
delinquency in Q2, compared to 12 percent for the nation as a 00
Source: Federal P.asena Bank of Boston and
whole.
Ore Mortgage Banker,: ,r.nc.anonl-isvor Analytics
s pc.h us e,..1s
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Massachusetts Has Average Proportion of Subprime Loans;
Among the Highest Subprime Default Rates
Good data on the size and condition of out.standing sub-prime loans (the group of loan products most at
risk in the current economy) has become available through a relationship between the Federal Reserve
Bank of New York and First American LoanPerformance. This data covers approximately 47 percent of
sub-prime lending, and provides insights into the size of the portfolio that may go into foreclosure. As of
Published by the Massachusetts Housing Partnership Compil ,F-f Fnci edited by Tim D,:r
www.mhp.net
Massachusetts Foreclosure Monitor: Third Quarter 2008
August 2008, there were 19.5 outstanding sub-prime loans per 1,000 housing units, placing Massachusetts 25th among the states. The market share of subprime loans was twice as high in the hardest-hit
states of California, Florida and Nevada than it was in Massachusetts. Although the state ranks in the
middle of the pack, the news on the status of these loans is distressing as only 51 percent of Massachusetts owner-occupants with subprime loans are current on their payments. California, Florida and
Michigan are the only states with higher subprime delinquency rates than Massachusetts. Massachusetts ranks 19th in the percent of subprime loans in the foreclosure process and 8th in the percent of
subprime loans that have become bank-owned foreclosed properties.
44 Percent of the Units Affected by Foreclosure in 2008* Are in
2— and 3-Family Homes
By and large, data on foreclosures has focused on properties. In Massachusetts, where there are a
large number of two— and three-family properties, an analysis of the number of units (both homeowner
and renter) is necessary to get a clear picture of the affect of foreclosures on communities. Using Warren Group data, Table 1 shows Massachusetts foreclosure petitions** by property type. From this data,
the total number of units can be determined. Overall, the foreclosure petition rate has increased from
9.1 units per 1,000 housing units in 2006 to 13.5 in 2007 (up 48 percent), and then declined to 12.4 in
2008 (down 8 percent). Some of this decline is attributable to a new 90-day right to cure period meant
to give delinquent borrowers a better chance at a resolution before foreclosure proceedings begin. Taking affect May 1, 2008, the number of petitions dropped 79 percent from May/June 2007 to May/June 2008. More time is needed to assess whether there has been a long-term change in the foreclosure petition rate. In 2006, single-family homes represented 67 percent of the properties in foreclosure, but only
51 percent of the units. By 2008, single-family homes were 60 percent of the properties and 45 percent
of the units. After a 90 percent increase in the number of foreclosure petitions, condominiums increased
from 10 percent of the properties and 8 percent of the units in 2006 to 15 percent of the properties and
10 percent of the units in 2007. Condominiums were 15 percent of the properties and 11 percent of the
units in 2008. Two— and three-family homes increased from 23 percent of the properties and 41 percent
of the units in 2006 to 25 percent of the properties and 44 percent of the units in 2008.
Table 'I: Massachusetts Foreclosure Petition** Activity,
by Prooertv Tvoe
Single-Family
Homes
Condominiums
Two-Family
Homes
Three-Family
Homes
Total Properties
Total tin::::
Units Affected
per 1,000 Hcusing Units
11,856
16,062
14,178
1,819
3,460
3,458
2,554
3,958
3,736
1,441
2,202
2,092
17.670
.-,%;:
4.0,
25,682
23,464
34,044
31,384
9.1
13.5
i
Source: MHP analysis of VVarren Group data.
references to 2008 in this section refer to the first half of 2008 only.
**A foreclosure petition is filej by a lender to initiate the foreclosure process.
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Massachusetts Foreclosure Monitor: Third Quarter 2008
Communities and Neighborhoods with Concentrated Foreclosures
Table 2 provides a snapshot of foreclosure petitions during 2006, 2007 and the first half of 2008. In
2006, Brockton topped the list, with 30.7 units affected per 1,000 units, 3.4 times the statewide rate.
Nine of the top 20 town/cities were in Worcester County (Athol, Fitchburg, Warren, Winchendon,
Leicester, Worcester, Ashburnham, Barre and Lancaster), with another six in Southeastern Massachusetts (Brockton, Mashpee, Holbrook, New Bedford, Halifax and Wareham).
From 2006 to 2007, statewide foreclosure activity increased 48 percent, but it increased 91 percent in
Lawrence, bringing this city to the top of the list. Note that by 2007 five cities in Massachusetts had
higher foreclosure rates than the previous statewide peak observed in Brockton the year before. Again,
Worcester County and Southeastern Massachusetts communities are well represented. Revere made
its debut at seventh on the list, with foreclosure activity increasing 115 percent.
From 2007 to the first half of 2008, foreclosure activity decreased 8 percent. Outcomes for individual
towns and cities is mixed. Lawrence remained at the top of the list, with a 3 percent decrease in activity. Foreclosure activity also fell in cities such as Brockton (-23 percent), Fitchburg (-17 percent), Springfield (-20 percent) and Revere (-14 percent). Foreclosure activity increased in Lynn (12 percent),
Everett (23 percent), Chelsea (15 percent) and Randolph (9 percent).
Table 2. Foreclosure Petition Activit , To • 20 Munici • alities Housin • Units > 1,000
Brockton
Lawrence
2
3
Springfield
4
Athol
5
Fitchburg
6
Warren
7
Winchendon
8
Lynn
9
Leicester
10
Mashpee
Worcester
11
Lowell
12
Holbrook
13
Ashburnham
14
Orange
15
New Bedford
16
Barre
17 18
Halifax
19
20 Wareham
Statewide
30.7
26.4
21.7
21.6
21.5
20.5
19.6
19.2
18.2
17.9
16.8
16.7
15.9
15.5
15.5
15.3
15.1
15.0
14 7
14.7
9.1
Lawrence
Brockton
Fitchburg
Lynn
Springfield
Chelsea
Revere
Winchendon
Everett
Athol
Mashpee
Worcester
Randolph
Hardwick
Carver
Whitman
.
New Bedford
Statewide 50.4
44.2
33.9
33.6
31.8
29.6
29.4
28.3
28.0
27.6
26.7
25.2
23.6
22.8
22,6
22.2
21.9
21.3
20.7
20.5
13.5
Lawrence
Lynn
Everett
Brockton
Ashby
Chelsea
North Brookfield
Fitchburg
Randolph
Springfield
Revere
Marlborough
Southbridge
Worcester
Athol
Douglas
Carver
Lowell
Haverhill
Mashpee
Statewide
49.1
37.6
34.5
34.2
34.0
33.9
32.8
28.1
25.7
25.4
25.3
24.2
23.5
22.8
21.8
20.7
20.7
19.9 19.8
19.7
12,4
Source: MHP analysis of Wan en Group foreclosure petition data, in conjunction with 2000 Census housing unit data, The petition rate is an annualized rate for the first half of 2008.
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Massachusetts Foreclosure Monitor: Third Quarter 2008
eraxmasmma.
A break-down by zip code clarifies the geography of foreclosures, and allows for neighborhood analysis. No small communities are represented in 2006, and Dorchester's 02121, 02122, 02124 and 02125
and Mattapan's 02126 are all in the top 20. Springfield, Brockton, Lawrence and Worcester are also
represented. In both 2007 and 2008, Lawrence's 01841 had the highest rate of foreclosure petitions,
and this rate increased from 30.6 per 1,000 housing units in 2006 to 62.2 in 2007 (a 103 percent increase) and to 63.4 in 2008. In addition to the distress occurring in Lawrence, the rapid increase in the
petition rate in Lynn's 01902 and 01905 should be noted, with a 22 percent increase in petitions to 42.5
per thousand units in 01902 and a: 10 percent increase in 01905 to 38 units per thousand from 2007 to
2008. These figures compare to statewide rates of 9.1 in 2006, 13.5 in 2007 and 12.4 in 2008.
Table 3, Foreclosure Petition Activit To• 20 Massachusetts Zi Codes Housin • Units >1,000
Brockton
Lawrence
2
3
4
5
6
7
8
9
10
11
12
13
14
15
02301
01841
01108
02121
02124
02302
02126
0.2125
02630
01603
01850
01107
0.2122
01607
16
17
18
01420
01610
0.1902
Fitchburg
Worcester
19
20
01605
01843
Worcester
Lawrence
Statewide
S rin•field
Dorchester
Dorchester
Brockton
Dorchester
Barnstable
Worcester
Lowell
S•rin field
Dorchester
Worcester
31.7
30.6.
29.6
29.4
28.8
26.4
26.4
25.7
24.6
24.0
23.3
22.3
22.2
21.9
02302
01108
01109
02124
02301
02121
02122
02126
01610
01107
01843
01850
01902
01603
MEM
21.4
21.2
21.1
01905
01420
01607
Fitchbur•
20.8
20.6
9.1
02125
02538
a., alysis of Warren Group _lorec;osure petition data
Source:
rate for the first half
ljon rate is an
Brockton
S rin•field
45.3
Dorchester
Brockton
Dorchester
Dorchester
44.9
41.8
41.7
40.7
37.8
37.4
37.3
36.3
36.0
34.8
34.8
01902
01905
01843
02302
01607
01108
02126
02149
02122
01109
02150
01431
01603
02121
Worcester
34.7
33.8
32.7
01535
02301
01107
Dorchester
Wareham
Statewide
30.1
30.0
13,5
01850
01104
Worcester
S • rin •field
Lawrence
Lowell
Worcester
Lynn
48.2
45.5
Lynn
Lawrence
Brockton
Worcester
Everett
Dorchester
S rin•field
Chelsea
Ashb
Worcester
Dorchester
North Brookfield
Brockton
S•rin•field
Lowell
S • ringfield
Statewide
42,5
38.0
36.8
36.7
35.6
35.0
34.8
34.4
34.1
34.1
33.9
33.6
33.2
32.9
32.6
32.6
31.9
31.8
30.1
12.4
c^ junction with 2000 Cei - sus housing unit data. The peti-
4
Massachusetts Foreclosure Monitor: Third Quarter 2008
Table 4. FY2008 Foreclosure Petition Activity,
To• 20 Massachusetts Block Grou.s
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Lawrence
Springfield
Lawrence
Lawrence
Lawrence
Lynn
Lawrence
Dorchester
Lawrence
Springfield
Worcester
Lawrence
Worcester
Lynn
Springfield
Brockton
Lawrence
Lawrence
Lowell
Lynn
250500
800900
250500
251100
251400
206400
250700
092000
250600
800900
732400
250200
732400
205800
801800
511500
250300
251300
312000
207100
4
4
3
3
5
3
3
3
5
5
2
4
2
6
1
1
3
2
1
Neighborhoods in
Lawrence Have the Highest
Foreclosure Rates
216.1
158.2
128.8
121.2
117.0
115.7
115.5
114.5
113.7
113.4
111.5
111.1
111.1
109.8
107.6
107.0
106,9
102.9
100.5
99.8
Given the limited resources available to tackle foreclosures, it is
important to pinpoint the hardest
hit sub-neighborhoods. Census
block groups, with approximately
100 to 400 housing units, provide
the basis for research of small areas.
At this level, the problems facing
Lawrence are even more pronounced, containing nine of Massachusetts' 20 block groups with
the highest foreclosure rate in
FY2008. Lynn and Springfield
each contained three of these """
block groups. Brockton, Dorchester, Lowell and Worcester are also
represented in the top 20.
Source: MHP analysis of Warren Gr up foreclosure petition data, in conjunction with
2000 Census housing unit data.
FY2008 Petition Rate, Top 20 Block Groups, by City (Number of Block Groups)
Lawrence
-
<%/11-)
'ynn (3)
orces
oston/Dorchester (1)
-----,Siirinhtiekt (3K
-
...arotki\On (1)
Massachusetts Foreclosure Monitor: Third Quarter 2008
identifying Foreclosure Clusters in Urban Neighborhoods
Lawrence's Census Tract 250500, Block Group 2, located in the Arlington neighborhood, had the highest FY2008 foreclosure petition rate in Massachusetts, with 216 units per 1,000 affected by foreclosure
activity. Mapping these properties becomes a powerful tool in isolating the highest concentrations of
foreclosures. Individual streets can be identified for targeted resources, as Boston has done with its
Foreclosure Intervention Team (FIT). Mapped below, Bennington Street stands out, but more importantly, it reveals that the entire block group is struggling.
Citizens' Housing and Planning Association, through a partnership with, the Warren Group, is preparing
a subscriber based web service that will allow local towns and organizations to track foreclosure activity, property-by-property, with information on a property's mortgage, foreclosure activity and re-sale.
This will increase state and local agencies' ability to funnel the appropriate resources to neighborhoods
and individual properties.
Lawrence, Census Tract 250500, Block Group 2
Residential Properties with Foreclosure Petitions or Auctions Scheduled, FY2008
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Massachusetts Foreclosure Monitor
May, 2009
Housing
Partnership
The "Massachusetts Foreclosure Monitor" is MHP's periodic examination of statewide and local foreclosure trends in Massachusetts and the nation.
Foreclosure
Update
Month-to-month data from
the Warren Group shows
foreclosure activity may be
slowing down just a bit. P. 2.
Massachusetts home
prices decline, though not
as much as other regions.
Greater Boston had third
slowest decline, trailing Dallas and Denver. P. 2.
Dedham reaches out to
homeowners who are in
danger of losing their homes
to foreclosure. P. 3.
Delinquency rates on riskier loans continue to be
higher among MassachuL, stts.- borrowers. P.
Foreclosure activity by
community zip code shows
high activity in Worcester
County. P. 5-7.
Neighborhoods in Lawrence continue= to face highest concentrate of foreclo----:F.. P. 6.
rnp most on
Petitiu:
gle-famil‘ , ones in fourth
quarter. P. 7
.
Underwater warnings
Negative equity loans a barometer for ,future foreclosures
Three of the 20 zip codes in
Massachusetts with the highest
percentage of "underwater"
loans are located in Lynn, according to a Seattle-based real
estate service. An underwater
or negative equity loan means
the mortgage exceeds the
value of the home.
In survey of 127 U.S. metro
areas, Zillow.com estimates
that 18 percent of homes purchased between 2004 and
2008 had negative equity, commonly known as underwater
loans. Zillow.com also reported
that in Massachusetts, the percent of underwater loans
ranged from 13 percent in the
Pittsfield metro to 28 percent in
the Boston-Cambridge-Quincy
me: ro to 40 percent in the
Worcester metro. At the zip
code level, Lynn's 01901
topped the Massachusetts list
at 66 percent
The Zillow report echoes a
March 3 Banker & Tradesman
report that said that nearly 18
percent of all Massachusetts
•;: , ineowner mortgagun are unwith the highe. ::on•
,
centrat.•
(65 perpercent), L.,
cent) and BR ' .•
percent). Both the V,•. an- en Group
and Zillow both use proprietary
algorithms to determine current
Table 1: Homes with Negative
Equity, Top 20 Massachusetts
Zi • Codes, Q4 2008
01901
02370
01835
01844
01904
01905
01832
02351
02302
02382
01718
01960
01902
01606
01840
01537
01607
01440
01453
Massachusetts Foreclosure Monitor, ww 3 .mhp.net
Haverhill
Abin•ton
Brockton
Whitman
Acton
Worcester
Lawrence
Oxford
66.3%
57.4%
55.0%
53,4%
52.8%
52.7%
52.4%
51.5%
51.0%
50.7%
50.0%
Worcester
Gardner
Leominster
48.7%
02324
Brid • ewater
Source: Zillow.com .
48.7%
value and negative equity.
While Warren Group data is
considered more credible than
Zillow's, estimating home values is not a perfect scienr .,•: 1,--lber of unEstimati
derwater loans be helpful in
gouging future foreci(,:--:rire rates
and where high concentrations
of foreclosures may occur.
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Rockland
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Foreclosure Monitor, May, 2009
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Signs that foreclosure filings are slowing
While year-to-year foreclosure
rates reflect a surge in foreclosures, month-to-month data indicate that foreclosures in Massachusetts may be slowing. According to Warren Group data,
12,554 foreclosure deeds had
been filed in the year ending
February 2009 up from 8,613 in
the year ending February 2008,
a 46 percent increase. A foreclosure deed is the final step in
the foreclosure process.
1.4%
1.2% -
Loans with Foreclosure Initiation in the Quarter,
United States, New England and Massachusetts,
Q1-1979 through Q4-2008
1,0% -
(la%
0,6%—
U. S
0.4%—
0.2%
Massachusetts
In February 2009, 823 foreclo0.0%
01
CO
01 CO .c17
N- O.
tr LO
o
CO CD 0 .- avk O
to
1- <1)
sure deeds were filed,
down 16
CO CO,
r'r
9 9 9' 0 CD Ci)9' 9
9 9 9 0 0 0 0 0 a 9
percent from January and down
aa a a a5 a a a a a a a 5 5 5 a • O'
oa aa
a
4.3 percent from February,
B'ource: Federal Reserve Bank o€ Boston and
2008. Also, the Federal Rethe Mortgage Bankers Association/HaverAnalytics
serve Bank of Boston reported
that from Q3 to Q4 2008, Massachusetts foreclosure proGreater Boston, Massachusetts prices dip,
céedings decreased from 0.7
although not as much as some regions
percent to 0.6 percent. The naS&P/Case.-Shiller index
tional rate is 1.1 percent.
In a recent survey of 20
Greater Boston & 20 City Composite
January 2001 -February 2009
major U.S. cities, Boston RealtyTrac ranked MassachuYear Over Year Change
home prices continued to
setts 27th among the states in
erode, although not as.
total foreclosure activity for 01
20 City Composite
much as other rnaior cit- 20%
2009. With e 9 percent decline
ies.
in foreclosure activity from Q4
•
I
11,111.111.11,
iiiiii
aa a
t —'
10%
2008, Massachusets was one
of 23 states to show a decline.
The news on delinquencies is
not as good. Mortgage Bankers
Association/Haver Analytics 60
day + delinquency data shows
that delinquencies continue to
increase .1 0:- all major loan categories '; 04 2008, with
percent of
delinadjustable —Ht..
UP-1MM 18 pc••:p.pt in
?m pared to 174.)4,.. - ,---0
for ti le nation.
According to the latest
0%
S&P/Case-Schiller index,
Boston showed a 7.2
-10%
percent decline from
February 2008 to Febru- -20%
M
ary 2009, the third lowest
O
to
decline of all the cities
surveyed. Only Dallas (- 4.5 percent) any Denver
.• 5.7 percent)
ttnr. Prices
2003 levels.
deoii •
0)
9
O
_L.
10 LC)
0 0
I
o
OD co
CD a
N• rn 0 coa)
0
_9. 2
0 0
Source: MHP analyst; cf S&P'Case Shiller data.
Boston are n• •
in the
SUR
As for iVio.-0....rchusetts as a v., hrle, the Massachusetts Association of
Realtors (MAR) reported that March sales prices declined 19 percent
Prices, page 4
Massachusetts Foreclosure Monitor, wvvw.mhp.net
Tim H. Da vi' , uthor
2
— Ma
sachusetts
Foreclosure Monitor, May, 2009
ar,414.31,111i9MASE
Community fo us: Dedham /
Program ies to help neighbors save homes
The limited federal and state
resources allocated to address
foreclosures are focused on
areas with the highest concentration of foreclosure activity. In
Massachusetts, 39 communities have been identified as e'
gible for federal funding. But all
communities are facing more
foreclosures and the town of
Dedham has responded with an
effort to help homeowners.
While Dedham's foreclosure
situation does not qualify it for
federal funding, it has certainly
caught the attention of town
officials. Selectman Bill MacDonald said he knew something
had to be done when he looked
at a map and saw evidence of
foreclosures all over town.
When he took the map to the
local clergy's monthly meeting,
"they were astounded," he said.
Located just south of Boston,
this community of almost
24,000 residents was ranked
78th in 2008 in foreclosure petitions and 57th according to the
Warren Group in the proportion
of mortgages that were subprime or at risk. In addition, recent data from Zillow.com estimates that 22 percent of those
who purchased a home from
2004 to 2008 have negative
home equity.
What resulted was Neighbors
Helping Neighbors, an outreach
effort led by local churches to
do outreach and let homeowners know about foreclosure prevention services. The program
has already held one seminar
and plans to do more outreach
and trainings for at-risk homeowners.
Judging from the statistics, future sessions will be needed.
As of mid-March, 145 Dedham
properties containing 167 units
of housing were listed in the
CHAPA/Warren Group foreclosed properties database. For
every 1,000 housing units, 19
al'e-TiTtFeTOTeadatire "process:
Of these,
.. 52 percent haye h
a petton to foreclose filed, 27
percerithavellad_arLanction.
scheduled_,_and _2:4er-cent- - ria-Ve been foreclosed_a_n_d are
..0—wRed:by_a..leadinginstitution„
Seventy-four percent of the
properties are Single-family
homes, followed by two-family
homes (12 percent), condominiurns (12 percent) and threefamily homes (1 percent).
L.
So while Dedham does not face
the same problems of many
urban communities, its foreclosure situation has caused local
leaders to take action "We want
people to realize that they're
not in this alone and that there
is help," said MacDonald.
W...44.01-4-,, latIVRA Z.-C=154k,
Massachusetts Foreclosure
Monitor, www.mhp.net
Davis, author
3
Statistics
In the 60 Days prior to May 15 2009 there was a total of 5,461 new
foreclosures in the state of MA of which most occured in Middlesex county.
http://www.foreclosuresmass.com/blog/2009/05/554--new-foreclosures-fil6c14-massachusetts-in-week-ending-may-152009.html
♦
The percentage of homeowners that are 3 months behind on their
payments rose to 4.2 percent compared to 3.4 percent a year ago.
http://blog.roost.com/2009/04/13/greater-bostQn-area-state-massachusetts/
♦
About a third of all of the foreclosed properties nationwide have been so
damaged, either by the previous owners or by criminal gangs coming in after the
foreclosure, that they no longer qualify for standard mortgage financing
http://www.cnn.coi 1.,/2009/US/04/16/damaged.foreclosures/index.html
-4-
According to the state's Department of Transitional Assistance (the
Department currently providing much of the services available to homeless
families) about 8% of families surveyed blamed their current homelessness on
foreclosure. Just a year ago that figure was only 3%
http://staff.supportunitedway.org/wiki/statistics-housing-and-homelessness
4-
The state's jobless rate I:it 7.4 percent in January, up from a revised 6.4
- , cent in Decenher. It's the highest rate since June 1993.
http://staff.supportunitedway.org/wiki/statistics-housing-a nd-homelessnoss •
4-
Year to date foreclosures in Mass = 14,229.YTD foreclosure sales = 3,662
httri://www.rea Itytrac.comistates/Massachusetts.html
fl 32,522 tin, - w.-re foredo each uti„
income IL
in the s t y , ,
'I MA. Assum; ,,
d loss
'3-ted
Renters and owners are being foreclosed into homelessness - The Boston Globe b ostoit ccur
Page 1 of 2
THIS STORY HAS BEEN FORMATTED FOR EASY PRINTING
More being foreclosed into homelessness tbston Oloft
By Jenifer B. McKim, Globe Staff I April 22, 2009
Derrick Hughes spent so much energy trying to save his Roxbury home from foreclosure that when sheriffs deputies
finally evicted him in January he had nowhere to go but his 1998 Chevrolet Blazer.
"I spent the weekend driving around, thinking, 'What am I going to do?'" said Hughes, 56, a UPS driver. "I was running
around trying to save the house rather than find a place for me."
Hughes, who lived out of his car for two months, is one of an increasing number of Massachusetts residents plunged
into homelessness because of foreclosure, state officials and advocates for the homeless say. The state is housing
about 2,650 families in shelters and motels, a 34 percent increase from last year at this time. About 8 percent blame
their predicament on foreclosure, according to a recent survey by the state Department of Transitional Assistance.
Last year, a smaller state survey found about 3 percent of families attributed their homelessness to foreclosure.
"People, families, and individuals have come back to their apartments and have been shown the door," said John
Yazwinski, executive director of Father Bills and Mainspring, a nonprofit in Brockton and Quincy that offers assistance
to the homeless. "There are more and more families from the rental market and people who have never experienced
homelessness before."
Last year, 12,430 homeowners in the state lost their properties to foreclosure - up 62 percent from 2007 - according to
Warren Group, which tracks real estate transactions. About 3,300 foreclosures involved homes with two and three
units. As a result, tenants are evicted through no fault of their own, and many can't afford the upfront costs necessary
for another apartment. Displaced tenants and homeowners often move in with family and friends, sometimes moving
multiple times before going to the state for assistance.
The newly homeless can be invisible - too embarrassed about their predicament to tell even friends or colleagues. A
Brockton couple, for instance, said they don't tell most people that they have been homeless since last summer. The
couple and their four children returned to their rented apartment from summer vacation last year to find a foreclosure
notice on the front door, and were ordered to leave within weeks. They had faithfully paid the $1,250 monthly rent and
did not know their landlord was facing foreclosure.
"We had nowhere to go," said Jack, 47, who asked that his last name not be published. "Everything fell apart. Next
thing you know, you're on the street."
The family lived on his salary as a roofer before the eviction, but he couldn't keep his business afloat once they moved
to the shelter. "We always thought the homeless was a bum on the street," Jack said. "Now it's the average family."
Lori and Nigel Harper, both 46, also never envisioned losing their home or having to live in a shelter with their 16-yearold daughter.
The Harpers bought their three-bedroom Milton home in 2000 for $210,000, attracted by a sunroom, den, and a
picturesque backyard with a small stream. But in 2004, Nigel had a stroke and could no longer work as a private
shuttle driver, Lori Harper said.
Facing foreclosure, the couple signed their home over to a real estate agent who said they could rent it until they had
enough money to buy it back. The couple now believes they were victims of a scam.
The attorney who orchestrated the deal was disbarred in 2007 following allegations he misappropriated funds from
other clients.
In 2007, Nigel Harper had another stroke, and the family's financial problems became insurmountable. "We were
evicted from the house, and we became homeless," she said.
http://www.boston.com/business/articles/2009/04/22/more_being_foreclosed into_homelessness?... 5/15/2009
Renters and owners are being foreclosed into homelessness - The Boston Globe Page 2 of 2
Last summer, the couple moved into a state-subsidized Cambridge motel, and in December relocated to Evelyn
House, a shelter in Stoughton.
"My daughter, she cries when she thinks about the life we had, when she thinks of having her own room and a
backyard," Lori Harper said.
Government officials and housing advocates say they are stepping up warnings to homeowners about such scams,
helping borrowers modify their mortgages, and notifying tenants in foreclosed buildings about their legal rights to stay.
But such efforts came too late for Hughes, the former Roxbury homeowner.
He bought his three-family house for $495,000 four years ago, expecting to cover the mortgage with his $65,000
salary as a UPS driver and rent from two units. He lost the house because of a tangle over payments with tenants and
overwhelming maintenance costs.
Lacking enough money for the first and last months' rent as well as the security deposit most landlords require, he
couldn't move directly into an apartment. And because he worried about losing his expensive watch, a laptop
computer, and iPod, Hughes was wary of going to a shelter.
So he stocked his Chevy Blazer with blankets and pillows and added a baseball bat for protection, parking on streets
in Dorchester and Roxbury at night. He lived out of his car for about two months, sleeping in the back and waking for
work to a cellphone alarm. The worst part was having to curtail visits with his 12-year-old daughter, who used to stay
at his house every other weekend.
Today, Hughes rents a room from a family friend. He is still working at UPS but is struggling to save money while
paying for his room, property storage, and child support.
He even dreams of finding a way to buy back his former home, which is now up for sale. "I want to get settled for me
and my daughter," he said. "I can't believe with all the help I had to get into this mess [that] there is no help to get me
out of it."
Jenifer B. McKim can be reached at fmckim(aglobe.com .
© Copyright 2009 The New York Times Company
http://www.boston.com/business/artieles/2009/04/22/more_being_foreclosed_into_homelessness?.. . 5/15/2009
Page 1 of 1
Homeless Family . Caseload: FY 2004, FY 2005, FY 2006, FY
2007 and FY 2008.
FY 04
FY 05
FY 06
FY07
FY
July
1552
1,147
1,212
1,460
1696
August
1,631.
1168
1,249
1,497
1.,760
September
1,657
1,162
1:291
1,521
1,857
October
.1628
1,189
1,323
1539
1,954
November-
1563
1,195
1,338
1,599
Decem.ber
1500
1,179
1,366
1,567
January
1,440
1,19,5
1,391
1 50 2
February
1,412
1212
1,388
1,611
Math
1,362
1,209
1,413
1,645
April
1,371
1,186
1,401
1,567
May
1,3.59
1,185
1,425
1,648
June
1,265
1,180
1,424
1,673.
2,000
1,800
1,600
-
•
1,400
-
FY 04
FY CB
FY 06
FY 07
F y 08
1,200
1,000
htt-p://www.maapl.info/uploads/HomelessFamily2004-08.jpg
5/15/2009
The blight next door
As the mortgage crisis deepens, neighbOrhoods feel the pain as some homeowners just
walk away
By Katheleen Conti, Globe Staff I October 19, 2008
There's a house down the street from Michael Dohovan's in Lynn that gets special
attention from the neighbors: They take turns taking care of the outside, as if
it were their own:
And in a way, the foreclosed house does belong to the neighbors, for its
appearance helps define the neighborhood, for better or for worse.
"It's shocking that we would have to do this type of thing," said Donovan,
Lynn's Inspectional Services chief and building commissioner. "Nobody wants a
boarded-up house next to them."
Such are the measures to which residents have resorted, as they grapple with the
financial and sociological side effects of the nation's subprime mortgage crisis
that has toppled banks and led to the historic government bai-out package.
"It affects the social fabric of a neighborhood, because other real estate
values have plummeted," said Lynn Mayor Edward J. "Chip" Clancy. "It has a
spinoff effect. It isn't just the property itself; it affects the streets, the
neighborhoods."
In the hardest-hit communities north of Boston, such as Lynn and Revere,
foreclosures are more than doubling the workload of inspectional service and
health department officials who have to inspect properties, assess fines, search
for the banks who own the properties, pay the initial costs of cleaning up the
properties, and eventually place liens on them, if it gets that far. The problem
is being exacerbated by properties that have been abandoned by their owners even
before the foreclosure process.
In Revere, North Shore Road was hardest hit by the walkaway problem, where in
many instances, the banks don't even know the property owners have left, said
Nicholas R. Catinazzo, Revere's director of public health and municipal
inspections. Usually the city finds out about these properties from concerned
neighbors.
From the outside, the high grass and stuffed mailboxes give them away, but the
sadder story comes from a peek inside, Catinazzo said.
"A lot of the properties we've been to, they've left furniture and everything. I
can't even gather really why," Catinazzo said. "People call us with sad, sad
cases, and you feel bad, and there's nothing you can do."
The city has to issue sanitation fines to make sure no one lives at a reported
abandoned property. If officials get no reply from an owner, the city issues a
24-hour order to clean up the property. Depending on its size, cleanup costs can
range between $200 and $2,000, which the city has to pay up front, Catinazzo
said. Although communities often recoup the costs from the banks that take over
the properties, the process can be slow - and for cash-strapped municipalities,
painful.
"We've spent $64,000 over the last two years, including board-ups," Catinazzo
said. "We had certain neighborhoods where we've always had problems, but we
started to see problems in more affluent parts of the city - West Revere, Malden
Street - that's when we noticed this isn't isolated. It's gotten so bad that
we've almost depleted our funds for cleanup."
In addition to cleanup and board-up fees, Revere also has a vacant building law
that allows officials to fine between $500 and $3,000 a year to owners who allow
their properties to remain vacant for a certain period of time. Catinazzo said
that since the foreclosure crisis, officials from other cities have called him
asking how they can implement a similar ordinance. Donovan said Lynn is looking into implementing a vacant building fine, but in
the meantime abandoned properties are issued health code violation fines from
$50 to $300 a day. Boarding up properties deemed unsafe by the Fire Department
can cost the city between $1,000 and $3,000, Donovan said. He is quick to point
out that the problem goes well beyond the financial aspect.
"I've been here four years and it's very bad out there," Donovan said. "A lot of
people have walked away from their homes. When it's abandoned, no one cuts the
grass, shovels the sidewalk; it becomes an eyesore and a target for people who
want to steal copper. Then we have the problems with vagrants and homeless
people moving into the houses."
"This has been the worst year I've ever worked here, in terms of abandoned
property, illegal apartments, illegal rooming houses," Catinazzo said, adding
that Revere's vacant homes are also becoming a target of copper thieves. "But if
you start boarding up all of them, it starts to look like a ghetto."
In Chelsea, Cottage Street residents are living with the effects of foreclosure
and are afraid the area will revert to its crime-ridden past, said Ann Houston,
executive director of Chelsea Neighborhood Developers. Houston estimates that 22
percent of Cottage Street properties are in foreclosure.
"There's been gang activity, a rise in graffiti, and a sense that the
neighborhood is flipping back," Houston said. "Chelsea has made so much progress
in the past 10 years, so what people fear is that this rise in foreclosures is
going to make them lose ground."
Chelsea Neighborhood Developers is a nonprofit community development corporation
that is looking into the possibility of acquiring some of the foreclosed
properties, fixing them up, and either selling or renting them, Houston said.
Many Chelsea renters have also become displaced victims of foreclosure, as many
landlords have walked away without warning, she said.
The combination of foreclosed or abandoned properties and increasing crime
"takes the heart out of the community," said Paul A. Green, a sociology
professor at Salem State College.
"There's the broken window syndrome, where if there's one window in a house
that's broken, the other ones will be, too. It has a depressive impact not just
for the value of my house, but for neighborhoods, because nobody wants to walk
down an abandoned neighborhood," Green said. "It has a degenerative and
fragmenting effect on a community - the social decay that goes on when a
property is abandoned."
Revere Mayor Thomas G. Ambrosino said foreclosures and abandoned properties have
resulted in significant drops in the city's property values.
"It's a real problem for people who live in our city," Ambrosino said. "I don't
know of a community that's not going through this. I think the whole market
downturn is having psychological effect on the nation."
Unfortunately, Green said, there is no quick fix for communities, financially or
sociologically.
"This bubble has burst and it's going to take some time for us to clean this
up," he said. "It's an incredible amount of anxiety that people are feeling.
People are feeling a kind of panic and they don't know where to turn."
Katheleen Conti can be reached at kconti@globe.com .
© Copyright 2008 The New York Times Company
Massachusetts Alliance Against Predatory Lending
www.maapLinfo
AN ACT TO PROTECT TENANTS
FROM EVICTION IN FORECLOSED PROPERTIES
WHAT WILL THIS BILL DO?
3 This bill would deter unnecessary evictions and stabilize communities during the
current foreclosure crisis.
3 Under this bill, institutional foreclosing lenders would not be able to evict tenants
(of all types) in foreclosed property unless they had a good reason to do so.
3 This bill would only apply to institutional lenders and not to subsequent buyers who
purchase foreclosed properties at the foreclosure sale or after.
3 This bill is time limited — it would expire on December 31, 2013.
UNDER WHAT CIRCUMSTANCES COULD A FORECLOSING ENTITY EVICT A TENANT
UNDER THIS BILL?
A foreclosing lender could evict a tenant, including at tenant-at-sufferance (former homeowner),
in certain circumstances, including the following:
n A binding purchase and sale agreement with a prospective owner-occupant requires that
that portions or all of the property be vacant
n Non-payment of agreed-upon rent
n Criminal behavior
n Refusing access to the owner, and similar violations of standard tenancy obligations
WHY IS THIS BILL NEEDED?
Under current law, the foreclosing owner does not need to have any justification to evict —
simply wanting the resident out is sufficient.' The human cost of these mass evictions is heavy as
former renters who paid rent and satisfied their tenancy obligations, and former homeowners
who are willing to do so, turn to homeless shelters, find it harder to rent elsewhere, and suffer all
the destabilizing effects Of forced dislocation.
3 In the first 11 months of 2008, 21,000 foreclosure petitions were filed across the state.
3 These petitions could result in as many as 30,000 households being evicted.
3 Massachusetts will face $2.8 billion lost in property values (half of which is in properties
not directly involved in the foreclosure cycle) and $58.9 billion lost in household, wealth
in Massachusetts alone by end of 2009.
I
One exception is that a foreclosing owner must generally have good cause to evict a Section 8 tenant.
HAVEN'T WE ALRADY PASSED LEGISLATION PROTECTING TENANTS IN
FORECLOSED BUILDINGS?
In November 2007 the Legislature passed Chapter 206 of the Acts of 2007 to stern the tidal wave
of residential foreclosures hitting the state. Chapter 206 was aimed primarily at preventing future
predatory lending schemes and funding pre-foreclosure assistance for owners. Chapter 206 also
includes two provisions clarifying that tenancies survive foreclosure, meaning that the
foreclosing owners become landlords of remaining tenants. While these requirements have
proven helpful for those renters lucky enough to have legal representation in foreclosure
evictions, they do not sufficiently address the mass evictions that are still going on. This bill
builds upon and fills in gaps left by the tenant provisions in Chapter 206.
Also filed are three other bills: An Act to Protect Tenants from Eviction in Foreclosed Properties, An Act
Relative to a Temporary Moratorium on Foreclosures, and An Act to Require Judicial Foreclosures.
DO ANY OTHER STATES HAVE EVICTION PROTECTIONS SUCH AS THESE?
Yes! This bill is modeled on similar laws from New Jersey, New Hampshire, Connecticut and
the District of Columbia. And Fannie Mae has recently agreed to let paying tenants remain in
their homes after foreclosure, but other foreclosing lenders continue to quickly evict all tenants
(including former owners who become tenants-at-sufferance after foreclosure).
SOME USEFUL STATISTICS:
The need for a bill to allow lawful and responsible tenants of all types to remain in their homes
after foreclosure is pressing:
Across the state 11,486 foreclosure deeds on single and multifamily properties were filed
during the first 11 months of 2008, up 65 percent from the 6,970 deeds recorded during
the same period in 2007. These foreclosures will likely result in the eviction of almost
15,000 households across the state.
Courts report a heavy increase in eviction cases due to foreclosure evictions of tenants
and homeowners. Between January 17 and February 29, 2008, 369 summary process
(eviction) cases were listed for trial in the Lynn and Lawrence sessions of the Northeast
Housing Court. Of these, 104, almost one-third, were filed by institutional lenders.
• And the suburbs, most with high shares of single family homes, are being hit harder as
the foreclosure crisis spreads, Of the 762 foreclosure deeds recorded in the Middlesex
North Registry of Deeds between January 1, 2007 and June 30, 2008, 38% were from the
nine suburbs near Lowell (Billerica, Carlisle, Chelmsford, Dracut, Dunstable,
Tewksbury, Tyngsborough, Westford and Wilmington).
MAAPL MEMBERS/SUPPORTING ORGANIZATIONS: Action for Boston Community Development, Inc., Association for Community Organizing for
Reform Now (ACORN), Action for Regional Equity, ARISE for Social Justice, Arlington Community Trabajando, Boston Tenants Coalition,
Brazilian Women's Group, Carpenters Local 40, Carpenters Local 107, Charles Hamilton Houston Institute For Race & Justice, Chelsea
Collaborative, Chinese Progressive Association, City Life/Vida Urbana, Coalition for Social Justice, Community Economic Development Ctr of
S.E. M4, Community Labor United, Democratic Socialists of America, Dorchester People for Peace, Era Key Realty Services, ESAC, Fair
Housing Center of Greater Boston, Greater Boston Legal Services, Greater Four Corners Action Coalition, Green-Rainbow Party of MA,
Harvard Legal Aid Bureau, Homeowner Options for MA Elders, Jewish Alliance for Law and Social Action, Lawrence Community Works,
Lawyers' Committee for Civil Rights Under Law, Mass Advocates for Children, Mass AFL-CIO, Mass Coalition for the Homeless, Mass
Community Action Network, Massachusetts Fair Housing Center, Mass Jobs With Justice, Mass Law Reform Institute, Mass Welfare Rights
Union, Merrimack Valley Labor Council, NAACP N.E. Area Council, National Community Reinvestment Coalition, National Consumer Law
Center, National Lawyers Guild, Neighbor-to-Neighbor, Neighborhood Legal Services, North Shore Labor Council, lOiste?, Organization for a
New Equality, Painters District Council 35, Pleasant St. Neighborhood Network Center, Southbridge Community Connections, Survivors Inc.,
Tri-City Community Action Program, UE Northeast Region, Union of Minority Neighborhoods, United Auto Workers Mass CAP, United Food &
Commercial Workers 1445, United For a Fair Economy, United Steel Workers Local 5696, Volunteer Lawyers Project.
niaonlinfoavahoo.corn
Legislative Contacts.' Grace Ross, 617-291-5591 www.MAAPL.info
Debra Silva, MCAT, 617-357-0700 x 340
6
Massachusetts Alliance Against Predatory Lending
FACTSHEET on the Tenant Protection Bill & Existing Massachusetts Law
All tenants in Massachusetts have certain protections, such as the right to a habitable dwelling
and the right to court proceedings before an eviction. In particular, a landlord can only evict a
tenant after providing a proper notice to quit that identifies the tenant and after presenting its case
for eviction before a judge. Outside of this process, no tenant may be locked out or forced to
vacate by the termination of heat, water, or other necessary services;.
Additional rights and responsibilities of tenants and landlords may differ depending on the type
of tenancy. Types of tenancies include
n Subsidized and unsubsidized tenants with leases
n Tenants at will
• Tenants at sufferance (the status retained by an owner-occupant and other household
members after a foreclosure) .
In December, 2007, the Legislature passed An Act Protecting and Preserving Homeownership.
Sections 8 and 9 of that law provide generally that:
• An unsubsidized lease tenancy becomes a tenancy at will after foreclosure
▪ Tenancies at will and subsidized tenancies are not altered by foreclosure
In essence, the year the Legislature decided that when lenders foreclose on occupied properties,
tenancies continue and the lender becomes the landlord of the original tenants.
Since foreclosing lenders assume landlord status once they take ownership of a property and all
legitimate occupants remain as tenants after foreclosure, the proposed Tenant Protections bill
does not change that fundamental relationship described in Chapter 206. Under current law for
all landlords, a post-foreclosure owner must maintain a building to code, including providing
necessary utilities. If it wishes to evict a tenant, it must establish the identity of the tenant (of all
types) and evict through a court proceeding.
The Tenant Protection Bill instead addresses the reasons why lenders who purchase foreclosed
property can evict in court. Right now, they may evict post-foreclosure tenants at will and put
thousands of households out on the street for absolutely no reason — leaving properties vacant
and open to all the problems that have been so widely reported. To fight this problem, the
Tenant Protection bill builds on existing law by allowing legally-defined tenants to remain in
foreclosed properties held by foreclosing entities so long as they fulfill their responsibilities as
tenants (by paying reasonable rent, maintaining the property, not engaging in illegal behavior,
etc...). Notably, these protections are eliminated once the property is purchased by a new noninstitutional owner OR if a signed purchase and sale agreement requires the vacancy of a portion
or all of the building.
This bill requires promotes the best interests of foreclosing entities, of tenants, and of the entire
Commonwealth. If foreclosing entities wish to maintain the value of their properties and avoid
the financial impacts of neglect, abandonment, degradation by natural causes, vagrancy and theft,
they should extend existing tenancies and keep their buildings occupied. Fannie Mae has already
announced a similar policy allowing tenants to pay rent and remain in their foreclosed homes
pending sale to new owners. In addition to the irreplaceable property maintenance provided by a
stable tenancy, the foreclosing owner would receive a source of steady income and help further
stabilize the neighborhood counteracting some of the downward pressure on neighborhood
property values.
inailto:maaplinfo@yahoo.con WWW.MAAPL.info
Legislative Contacts: Grace Ross, 617-291-5591 Deborah Silva, MLRI, 617-357 70700 x 340
L
Massachusetts Alliance Against. Predatory. Lending
www.maapl.info
SUMMARY FACT SHEET
.
.0440-, **600.0441.1761WliigétiPro p erties
Lead Sponsors RepresentativeMalta , S enator,Chandler HB=72cj/SBI6o9
This bill will enable paying tenants to stay in their homes when a lender takes back a property through
foreclosure. Lender-landlords will not be able to evict tenants (tenants, tenants-at-will, tenants-at-sufferance)
who pay rent and abide by the standard rules of tenancies until they have a new owner-occupant buyer who as
a condition of purchase requires units to be vacated. Foreclosed properties currently average almost 12
months on the market before re-sale. Our municipalities are burdened to cope with numerous vacant and
unsupervised properties, degrading neighborhoods and damaging property values. Buildings left vacant for
months are targets for catastrophes such as burst pipes fire, vandalism, and disrepair due to neglect. This bill
will keep people in their homes and help to stabilize neighborhoods during the current crisis.
, :,._,
pi iO. Foreclosures= Right To A D ay in Co
..
OA SPP4s0Ts:;Repr e sentative Smizak, P44q4 0g05Py.: .I2 2I
, .
1
This amendment to the foreclosure law will enable Massachusetts to join with most other states (including New
York, Connecticut, South Carolina, and Kentucky) in requiring that a court approve foreclosures for owneroccupants of 1 to 4 family homes. Currently, even if a lender violates the law or makes an error in the amount
owed, borrowers have no right to have a judge rule on whether a foreclosure is warranted. Massachusetts, a
leader in protections for tenants, should provide equal judicial process for homeowners in danger of losing their
homes. Many borrowers got mortgages through now defunct brokers. They must deal with large, out of state
companies and hopeless bureaucracies, unable to find anyone authorized or willing to renegotiate their loan.
170-ipoiAkyNfoi-a.06-tiiiiOlit:Fiii7e6lOgl.fre
eacI,SPOn:or::Aepr6enr*i..y.se Unfigi.14;'Ser*Ofi,Mon4gliy:
5,T:p7 S)3.j ,.-.
This bill provides a 6-month moratorium on foreclosures of sub-prime and other "creative" mortgages that are
• presumptively unfair. It keeps homeowners from losing their homes and mandates good faith negotiations by
lenders while more comprehensive solutions are affected on either the federal or state level. Foreclosures not
only devastate borrowers who lose their homes but entire communities. They lead to lower property values,
abandoned homes, less tax revenue, higher crime rates and general destabilization of our neighborhoods. The
moratorium will apply to loans which unfairly lured borrowers with low introductory 'rates that increase
. dramatically; with principles at 97% or more of house's value; with substantial pre-payment penalties; that are
interest only; or with high points, fees or interest in violation of existing predatory loan law. In 1991, the
Massachusetts Legislature passed a moratorium to help victims of home improvement loan scams. New York
and New Jersey are among states now considering foreclosure moratoriums.
.6. --A:ehiiiettSiii-01.6siiii-e:WdiatiOri rcigi,a.int:.
taa s- odi'-isVi:.. efili'geritaii:vr'e,Ped6iie':,HB4003
This amendment would provide that the mortgagor be offered the opportunity to participate in a courtsupervised Foreclosure. Mediation Program. In that program the mortgagor will have the opportunity to
negotiate an agreement with the mortgagee. A foreclosure shall only be allowed to be initiated if a good faith
effort has been made by the lender to review the borrower's financial situation and if feasible provide a loan
modification or other option to assist the borrower. Such mediation programs have dramatically decreased
foreclosures and lowered court case loads and costs in Philadelphia and a few other areas.
MAAPL MEmBERs/SUPPORTING ORGANIZATIONS: Action for Boston Community Development, Inc., Association for Community Organizing for
Reform Now (ACORN), Action for Regional Equity, ARISE for Social Justice, Arlington Community Trabajando, Boston Tenants Coalition,
Brazilian Women's Group, Carpenters Local 40, Carpenters Local 107, Charles Hamilton Houston Institute For Race & Justice, Chelsea
Collaborative, Chinese Progressive Association, City Life/Vida Urbana, Coalition for Social Justice, Community Economic Development Ctr of
S.E. MA, Community Labor United, Democratic Socialists of America, Dorchester People for Peace, Era Key Realty Services, ESAC, Fair
Housing Center of Greater Boston, Greater Boston Legal Services, Greater Four Corners Action Coalition, Green-Rainbow Party of MA,
Harvard Legal Aid Bureau, Homeowner Options for MA Elders, Jewish Alliance for Law and Social Action, Lawrence Community Works,
Lawyers' Committee for Civil Rights Under Law, Mass Advocates for Children, Mass AFL-CIO, Mass Coalition for the Homeless, Mass
Community Action Network, Massachusetts Fair Housing Center, Mass Jobs With Justice, Mass Law Reform Institute, Mass Welfare Rights
Union, Merrimack Valley Labor Council, NAACP N.E. Area Council, National Community Reinvestment Coalition, National Consumer Law
Center, National Lawyers Guild, Neighbor-to-Neighbor, Neighborhood Legal Services, North Shore Labor Council, e Oiste?, Organization for a
New Equality, Painters District Council 35, Pleasant St. Neighborhood Network Center, Southbridge Community Connections, Survivors Inc.,
Tri-City Community Action Program, UE Northeast Region, Union of Minority Neighborhoods, United Auto Workers Mass CAP, United Food &
Commercial Workers 1445, United Fora Fair Economy, United Steel Workers Local 5696, Volunteer' Lawyers Project.
M a ap Iiil 1.0 Oh:Oh 0 o. coin
www.NIAAPL.info
Legislative Contacts: Grace Ross, 617-291-5591
Debra Silva, .11/11,R1, 617-357:0700 x 340
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