Massachusetts Activates $20M To Buy Foreclosed Homes

Filed Under Depreciation, Foreclosure Market, Housing Market, Housing Videos, Mortgage Defaults, Mortgage Delinquencies, Mortgage Implosion, Mortgage News, Stop Foreclosure, Subprime Implosion, Subprime Mortgage Industry
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Massachusetts has some new tools to fight the foreclosure crisis. Twenty million, to be exact.

The state has just activated a 20 million dollar loan fund for community groups to buy foreclosed homes before they become neighborhood wrecking eyesores and worse.

Foreclosures are devastating both for individual homeowners and their families and also to communities.

The 20 million dollar fund will provide loans of 250 thousand to a million dollars to community groups.
That’s expected to buy 250 to 500 foreclosed homes and apartments, with the Boston, Brockton, Chelsea, Lawrence, New Bedford, Springfield, and Worcester areas.

Notably, it doesn’t use any state money. 17 million comes from private lenders in the Massachusetts housing investment corporation, 2 million from the Boston foundation, and 1 million from the Hyams foundation in Chelsea.

IT’S A WONDERFUL example of people coming together to try to solve a problem

The fund is being launched as Massachusetts is facing what many housing officials call a crisis of foreclosures, banks and lending companies seizing homes from people who’ve stopped paying their mortgages.

The warren group reported Monday that foreclosure deeds — the final step in the foreclosure process — soared to over fourteen hundred in Massachusetts in may, 107 point five percent more than a year ago. Year to date, foreclosure deeds are up nearly a hundred and forty percent.

Why Chelsea Massachusetts? Well within five blocks of where the governor was speaking there are 44 homes in some stage of foreclosure.

Our goal is to acquire properties quickly, and then rehabilitate the property and return it back to great use 11 18 46 and so the fund will help us to really have a ready source of money

The big question … Is twenty million dollars more than a drop in the bucket?

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