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Bill > S1926


MA S1926

Protecting homeowners from unfair tax lien practices by cities and towns


summary

Introduced
03/29/2021
In Committee
03/29/2021
Crossed Over
Passed
Dead
12/31/2022

Introduced Session

192nd General Court

Bill Summary

For legislation to protect homeowners from unfair tax lien practices by cities and towns. Revenue.

AI Summary

This bill aims to protect homeowners from unfair tax lien practices by cities and towns. The key provisions include: 1. Setting a $30 filing fee for municipalities to record any documents related to tax collections under Chapter 60 of the General Laws. 2. Establishing criteria for the sale of tax receivables by municipalities, including requiring the purchasers to be licensed debt collectors in good standing with the Department of Revenue. 3. Mandating detailed notice requirements to homeowners when their tax receivables are sold to third parties, including information about their redemption rights and the foreclosure process. 4. Providing a one-year redemption period for homeowners after a tax title is foreclosed on and requiring any proceeds from the subsequent sale of the property to be shared between the homeowner and the municipality. 5. Allowing municipalities to offer payment plans and interest waivers, particularly for elderly or disabled homeowners, to help them redeem their properties. 6. Extending the time before a municipality can file a foreclosure complaint from 6 months to 12 months after a tax taking. The overall goal is to create more transparency and consumer protections around the tax lien process to prevent homeowners, especially vulnerable populations, from losing their homes due to unpaid taxes.

Committee Categories

Budget and Finance

Sponsors (2)

Last Action

Accompanied a study order, see S2743 (on 03/10/2022)

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