Galvin To Propose Court OK For Mass. Foreclosures

Secretary of State William Galvin said he plans to submit a bill that would require Massachusetts mortgage lenders to get court approval before foreclosing on homes.

Galvin said he will revive a proposal state lawmakers rejected two years ago because of new questions about the validity of titles for foreclosed properties.

"When I proposed this a couple of years ago, the industry spent a lot of money to make sure nothing happened," Galvin said. "I think the banking and mortgage industry has had a chance to clean up its own mess — they haven't done so."

Galvin said the issue is hindering the state's housing market, which is critical in helping the economy recover.

"I see it as an economic issue," Galvin said. "We're not going to get the real estate industry moving again til we clean up this vast bubble of real estate that's out there in foreclosure."

He said the proposal will protect homeowners.

Massachusetts is one of 27 states that do not require foreclosures to be reviewed by a judge.

Lenders and some real estate lawyers say mandating judicial approvals would just create another level of bureaucracy that would slow the process and thwart the housing market's recovery.

This program aired on December 6, 2010. The audio for this program is not available.


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