Since when have they really been on board with anything not created by them anyhow..?
So what's this law I'm talking about you ask?
The 2012 Massachusetts foreclosure law was predominately designed to help distressed homeowners. It works like this : The law allows nonprofit organizations to buy homes that are foreclosed, after buying the foreclosed properties, the nonprofits sell back the homes to the homeowners that originally lost the homes to foreclosure. Better yet, because the nonprofits tend to buy the homes from the lenders at their current market values, they can sell the home with a restructured loan (one the buyer can very much afford) and give it back with a modified loan agreement. The ultimate goal is for homeowners to keep their homes at affordable rates.
How selfless of Massachusetts to want to implement such a life changing concept. You can bring out the tissues... now!
However, like Murphy's Law goes, anything that can go wrong will!
And what can go wrong with this?
Well, the Feds, you know, those people in suits up at Capitol Hill, yeah those, they don't like this idea too much. Apparently, the FHFA has a so called “policy” of refusing to engage with organizations that sell foreclosed properties back to the former homeowners. Wait.. a policy? Nice scapegoating government, just keep inventing policies when they seem convenient. Figures, what-the-f***!
You're telling me that the federal government doesn't want to work with a law that helps foreclosed homeowners? Who would've though they'd do such a thing! (blatant sarcasm, if you haven't already noticed)
This constitutes a violation of Massachusetts law, and what does a savvy State Attorney General (Martha Coakley) do when someone (feds) breaks the law? They sue! (obviously).
Coakley filed suit in the Suffolk Superior Court, alleging that the FHFA has refused to sell mortgages it owns to the nonprofit organization Boston Community Capital (BCC). Again, “ BCC seeks to buy foreclosed or nearly foreclosed homes and then sell them back to the homeowner at a fair market value, helping to keep families in their homes and restoring a sense of ownership within the community. This surely helps the homeowners, but it also makes sense for lenders and the wider community who get to avoid the costly and drawn-out process of vacancy and resale.”
Massachusetts state law explicitly forbids banks and lenders from refusing to consider offers from legitimate buyback programs merely because the property will be resold to the former homeowner. If you ask me, what's the problem with having the homeowner have his home back, at a price he/she can actually afford now? Oh feds, you're just overreacting, again..
Coakley says "Our law works, and they have no good reason for not doing this, in fact, they are a roadblock to progress here in Massachusetts. Unless they are willing to do that now, we're going to explore what our legal options might be to try and force their compliance." You go girl, tell the feds you're going to fight for the homeowners of your State, if only other states had people like you....
Safe to say that,
Ball is in FHFA's court now...