Foreclosure Crisis Worsens Spurring Cries of State Inaction
Foreclosure crisis worsens in Massachusetts, spurring cries of state inaction
The effects of the Great Recession may be receding, but many Massachusetts homeowners remain underwater. The number of foreclosures is rising, and that trend is expected to continue.
The reason, experts say, is a backlog of old foreclosures that were stalled due to a state law that are only now proceeding. But advocates for homeowners say the state is also not doing enough to help struggling homeowners.
Elyse Cherry, CEO of Boston Community Capital, which invests in affordable housing in low-income communities, was part of a 2014 task force that made recommendations to state government to address foreclosure impacts. “The fact that they haven’t been implemented at all speaks to the current interest of state government in terms of dealing with it, and the fact that as a country we have moved on,” Cherry said.
The foreclosure crisis began around 2007, as real estate values nationwide plummeted and many homeowners were trapped in high-interest mortgages they could not afford. The recession and high unemployment exacerbated the problem.