Governor Healey signs bill. Equity theft now illegal in Massachusetts.

[Tadpole Raisin]

https://www.boston.com/news/local-news/2024/07/31/equity-theft-is-now-illegal-in-massachusetts-making-it-possible-for-some-who-lost-their-homes-to-get-money-back/?amp=1

Snip:

Now, if a city or town forecloses on a home due to unpaid taxes and sells it, whatever equity remains after the tax is paid off must be returned to the former homeowner.

“It’s a big deal,” said Pioneer Public Interest Law Center President and former Judge Frank Bailey.

Sometimes, the homeowners don’t always just owe the city or town money. In addition, several municipalities like Springfield, Worcester, and Quincy sell the tax liens to private debt buyers, who keep the entire equity windfall, said Todd S. Kaplan, senior attorney at Greater Boston Legal Services. Therefore, the excess money doesn’t even go back to the municipality but to private creditors.

The new law helps those who are “house rich and cash poor,” said Kaplan, with property tax arrears, a path to stabilizing their housing and allowing them to stay in their homes.

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You know this is rampant!! These citizens don’t have the ability to fight back. They’re losing everything so it is easy to railroad them.

I love that she did this!!

[Stargazer99]

1. I was hoping someone figured out a way to outlaw private equity - they profit from others misery

[Tadpole Raisin]

2. People in other states should find out what the law is there

and fight to have a similar law passed if home owners aren’t protected.

I wonder if red states are worse in this area than blue.

And what about that horribly abused and corrupted use of Eminent Domain?

[jimfields33]

3. In Florida, your home is safe from being taken

as long as you are homestead. They do a good job here.

[3Hotdogs]

4. Didn't the Supreme Court rule that the equity must be returned to the former homeowner? I believe that case was last

year.

Massachusetts law may be in response to that ruling.

[Tadpole Raisin]

5. Wow I missed that one. 9-0 on May 25 2023 SCOTUS

Ruled in favor of a Minnesota woman that local governments can’t collect more than they’re owed in tax collections.

I looked up that the MA legislature was dragging their feel in addressing this and state Sen. Mark Montigny had been submitting a bill on home equity theft since 2018. He was threatening to force a roll call on this or attach the bill to anything going through the legislature.

MA has been democratically controlled in both houses for a long time. Can’t blame this on the other side. Just reps not representing their constituents!!!

Thank you for telling me. I hope other states have addressed this. It was/is an unforgivable policy.

[BlueWaveNeverEnd]

6. wow...that this was even happening