Friday, December 03, 2010

City of Lowell contemplates Receivership Program

This past Tuesday I attended a meeting of the Lowell City Council's Housing Subcommittee. The members of the subcommittee viewed a presentation on the city administration's plans to institute a receivership program for homes that are in the foreclosure process and that have either been abandoned or are not being kept up to the necessary standards. I'm still researching the legal foundation for this type of receivership, but as I understand it, the city would petition the Housing Court to have a receiver appointed for the property. That person would then take control of the property, make all necessary repairs and then sell it. Moneys expended by the receiver would constitute a "super lien" on the property that would take priority over other encumbrances, including the first mortgage.

Receivership is a drastic step, but these abandoned homes are like anchors that are dragging down the value of the homes of everyone else in the vicinity. For that reason alone, drastic steps are needed. Hopefully the city will continue to move forward with this effort.

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