GBAR on the Home Front | February 28, 2008




	On Wednesday, February 27, 2008 the Boston City Council voted unanimously to approve a new law regulating the maintenance of abandoned and foreclosed properties. The ordinance sponsored by Councilor Robert Consalvo (District 5-Hyde Park, Roslindale, Mattapan), requires companies to register foreclosed properties with the City, identify who is responsible for maintenance, post their contact information on the property and pay a $100 annual fee on each vacant home. GBREB worked with Councilor Consalvo to ensure that the ordinance addressed many of the long term issues facing the City without unduly burdening property owners. At a public hearing held earlier this month, GBREB described many of the challenges facing REALTORS® who list and sell Real Estate Owned (REO) properties. GBREB successfully argued that when a REALTOR® accepts these listings they may have little or no knowledge of the condition of the property and should not be held liable for repairs. Almost all properties will be sold “as is”. Several other amendments were adopted including a clarification of the foreclosure process for unpaid assessments owed to a condominium association. The bill will now be sent to Mayor Menino for his consideration. Additional information on how to comply with the law will be provided as soon as it is finalized.


	On Tuesday, the Boston Redevelopment Authority Board of Directors voted to advance a proposal to change the City of Boston Zoning Code prohibiting landlords from renting to five or more students. Although current law already prohibits landlords from renting to four or more unrelated people under the lodging house statute and the state sanitary code stipulates standards of habitability, Councilor Michael Ross (District 8-Back Bay, Beacon Hill, Fenway, Kenmore, Mission Hill, West End, Allston) contends additional regulation is necessary. Under the Ross proposal Article 2, §2-1 and Article 2A §2A-1 of the Boston Zoning Code would change the definition of family which has been in place since 1991, to exclude five or more students enrolled at or attending a post-secondary educational institution. At a public hearing held on December 11 before the Boston City Council, GBREB testified in opposition to the change on the grounds that the proposed ordinance was fraught with legal issues and would be practically difficult for both landlords and ISD to enforce. After gaining the unanimous approval of the Boston City Council and BRA, the issue will now be sent to the Zoning Commission for final consideration before becoming law. Click here to see an editorial by the Boston Herald \| Click here to see a copy of the proposal BACK TO TOP


	With the ink still fresh on President Bush's $152 billion economic stimulus plan, Senate Democrats are pushing for new ways to address the troubled housing market. One such strategy causing controversy would allow bankruptcy judges to alter the terms of certain mortgages, including interest rates, payback periods and principle balances. Currently, bankruptcy judges may restructure most loans (ie: credit cards and car payments) but not a consumer's mortgage debt. The U.S. House Judiciary Committee passed a similar proposal (the Emergency Home Ownership and Mortgage Equity Protection Act), in September of last year, which the banking industry has lobbied hard against. Other measures being considered are: Creating a tax break allowing companies with operating losses this or last year to apply them to past years for a refund; Allocation of $10 billion in bonding authority, which would allow housing-finance agencies to help people refinancing subprime loans and first-time home buyers; and Authorization of $4 billion in block grants to help localities with high foreclosure rates purchase and rehabilitate vacant properties. Notably, this week the Massachusetts Attorney General’s Office obtained a temporary injunction against California-based Fremont General and Fremont Investment and Loan. The subprime lender has originated thousands of loans in the Bay state under risky lending practices, according to AG Martha Coakley. The injunction was granted by Judge Ralph D. Gants in Suffolk Superior Court. Fremont must provide Coakley’s office with at least 30 days notice of all foreclosures the lender intends on initiating. Approximately 2,200 loans in Massachusetts are still owned and serviced by Fremont. The injunction will allow Coakley 45 days to object the foreclosure if deemed “presumptively unfair.” Additionally, federal officials last week unveiled Project Lifeline – a new program that would allow homeowners who are 90 days or more behind on mortgage payments to delay the foreclosure process for 30 days. During this time homeowners and lenders would attempt to work out more affordable loan terms. Six of the largest mortgage lenders have joined the initiative – Bank of America, Countrywide Financial, J.P. Morgan Chase & Co., Citigroup, Washington Mutual and Wells Fargo. All are part of Hope Now – a coalition of counselors, investors and lenders to help distressed homeowners. BACK TO TOP

	Looking for a new market opportunity? Foreclosures have created significant opportunities for real estate professionals. Though not for the faint of heart, investing in foreclosed properties can prove profitable for those willing to put in the required research and work. According to data released this month from RealtyTrac's year-end Metropolitan Foreclosure Market Report, there were 2,203,295 foreclosure filings reported on 1,285,873 properties last year – up 75 percent from 2006. The filings include default notices, auction sale notices and bank repossessions. The report also shows that more than one percent of all U.S. households were in some stage of foreclosure during 2007 – up from 0.58 percent in 2006. RealtyTrac's website allows users to search for foreclosure properties by community or county on a state-by-state basis. To search Massachusetts, click here. Notably, if you are interested in working with foreclosures, short sales, properties at auction or bank owned properties, the Massachusetts Association of REALTORS® is offering a new one-day Loss Mitigation Certification course. The course will equip REALTORS® with tools to deal with short sales on both the buying and listing side. Attendees will also learn about the auction process including viewings, financing, bidding and commission concerns. Locally, this course will be presented on Wednesday, March 12 from 9:00 a.m. to 5:00 p.m. at the Holiday Inn at Beacon Hill (5 Blossom Street at Cambridge Street) in Boston. Tuition is $295 if registered one week prior to the course and includes certification upon completion of the class, lifetime usage of the LMC logo, two CE credits and lunch. Registration is being handled by MAR. To register call their Customer Service line at 1-800-725-6272 or visit MAR's Calendar of Events. BACK TO TOP

	GBAR is currently accepting nominations for the position of Regional Vice President to the Massachusetts Association of REALTORS® (MAR) for 2009. The elected office holder presides at each regional caucus of the MAR Directors (three per year) from the Greater Boston Real Estate Board (GBREB) and oversees the coordination of state REALTOR® association objectives and activities within GBREB. Election to this position provides an automatic seat on the Greater Boston Association of REALTORS® (GBAR) Board of Directors. The deadline to submit nominations is March 31. To request an application please contact GBAR Executive Director John Dulczewski at 617-423-8700. Duties of the MAR Regional Vice President position include: Attend MAR Director (3 per year), Executive Committee (4 per year) and GBAR Board of Director (6 per year) meetings; Serve on a minimum of one GBAR committee; Attend MAR and GBAR special programs and events including the annual awards programs, Installation of Officers and REALTOR® Day on Beacon Hill. Qualifications of the position include: Must have held active membership in GBAR for a period of no less than 1 year prior to election; Must have served as a director or chairperson of a GBAR or GBREB committee, task force or work group for a period of no less than one year during the three years prior to the election; Must have served at least two years as a MAR State Director. BACK TO TOP