Legislation to Curb Property Tax Foreclosures in Boston Surmounts Budget Barrier

Massachusetts lawmakers made significant progress for low-income and at-risk homeowners by approving a measure that reduces the likelihood of Bay State residents losing their homes to property tax foreclosure. In Boston, throughout Massachusetts, and across the nation, homeowners have lost their homes and the equity they’ve built due to unpaid property tax debts, with older adults on low or fixed incomes and Black and Latino households being the most affected.

Andrea Bopp Stark, an attorney at the National Consumer Law Center, said, “We are delighted that House and Senate leaders have endorsed policy protections for Massachusetts residents at the highest risk of losing their homes and their accumulated equity due to tax foreclosure. With this, Massachusetts is at the forefront with legislation to improve access to affordable payment options that keep families, and their equity, in their homes.”

In 2023, the United States Supreme Court ruled that it is unconstitutional for a local government to seize a property in a tax foreclosure and retain the surplus after the tax debt and costs are settled; and Massachusetts is one of the first states to update this law.

The measure includes several provisions, including reducing the interest rate on unpaid property taxes from 16% to 8% and allowing for all the interest to be waived in certain situations. It also significantly reduces the down payment required for homeowners to join a payment plan, from 25% to 10%.

For all those homeowners who cannot keep their homes due to foreclosure, these new measures require the return of any surplus from the sale proceeds to the homeowner after taxes and some costs are paid.

Todd Kaplan, senior attorney at Greater Boston Legal Services, told a local outlet, “The theft of home equity by Massachusetts cities and towns has been devastating for low-income homeowners struggling to pay their tax bills, and this measure provides immediate relief to people with property tax debts that have accumulated through no fault of their own, often due to inheritance, illness, or other factors. We are grateful to the legislature for implementing these much-needed protections.”

Available Foreclosures:

Boston: 120 homes available

Springfield: 85 homes available

Worcester: 95 homes available

By Elías DaSilva | 26 de Noviembre de 2024