Breaking News: Banks Challenge Local Foreclosure Ordinances
Earlier this month, several banks filed a federal court lawsuit challenging several Massachusetts city ordinances related to foreclosure prevention. These ordinances, among other things, require lenders to engage in mediation prior to foreclosure and rent to homeowners who have been foreclosed.
Foreclosure law in Massachusetts, like the rest of the country, primarily comes from state law. It is unusual for a town or city to pass an ordinance relating to foreclosure, making these laws ripe for legal challenge. This is an important case about whether local government can get involved in foreclosure defense, and will undoubtedly decide the fate of other local efforts to prevent foreclosure. Stay tuned!