Foreclosures

							Foreclosures
Foreclosures, abandoned buildings, tight credit, high heating costs…..the world is going through a
difficult time and it is hitting home. Abandoned buildings are creeping into our neighborhoods,
close to buildings that we own and carefully maintain. These buildings are the beginning of blight
in our neighborhoods that, if left unchecked, will result in an increase in crime such as arson,
theft, drug use, and prostitution, further taxing our already strapped police department, and a
decrease in good law-abiding tenants who pay their rent on time who will flee for their safety.
Landlords need to work with the City to maintain safe neighborhoods. Report abandoned
buildings to the City Task Force. They will attempt to find the owner and make sure a
management company is hired to secure the building and maintain it.
Building owners are supposed to post a sign on their buildings and shut off water and electrical
service when they abandon a property, and local banks are cooperating, but many of these
properties have been foreclosed on by out-of-state banks and hedge funds and mortgage
companies that have since gone out of business and they don’t care, and their buildings become
dilapidated quickly. Fire officials and building and health inspectors keep an eye out for these
buildings.
Who owns these buildings? How can you go about finding out if you are interested in purchasing
one? The City is scheduling workshops; one in late October for homeowners and one in
November for tenants, to help people sort through the complexity of foreclosures. Call the
Mayor’s office at 978.374.2300 for more information.

The federal government recently made available a large pot of money to help people with
foreclosed homes and sub prime loans, but in Massachusetts that money has so far been
reserved for people who live in Boston, Springfield, Brockton and Worcester, the mayor said. "We
have been trying to get federal money to help on this issue, but so far we have not been
successful," he said anyone looking for help with a foreclosure issue should contact Lawrence
Community Works in Lawrence or the Housing Preservation Center on Merrimack Street. Another
resource is the walk-in Housing Preservation Center in Lowell. More information is available at
www.coalitionforabetteracre.org.
The upside to this current financial mess is that rentals are booming. Buildings that are
foreclosed upon mean that those owners and tenants that were displaced have to find other
places to live. The inability of anyone, except those with a 20% down payment and stellar credit
scores of 720 or more, to get financing to purchase a home means that more people are forced to
rent until banks start lending again. If your units are not attracting good tenants, take a good hard
look at what you are offering. As more people are watching HGTV, their expectations have gone
up a few notches and they want to see updated kitchens and baths, wood and ceramic tile floors,
etc. They are also very concerned about the high cost of heating this winter.
Next month’s newsletter will focus on heat and energy concerns, sky-rocketing heating costs and
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available incentives to upgrade the energy efficiency of our buildings. At the November 18
meeting, a speaker from National Grid will walk us through the various incentives (some
reimbursing up to 75% of the cost of weatherization) and rebates and answer questions.