By Bob Katzen

The Judiciary Committee held a hearing on legislation that would prohibit cities and towns that foreclose on properties on which the owner owes back property taxes, from keeping all of the profits when the city or town sells the property at auction.

It would repeal the current law that allows municipalities to keep all of the profits—even if the amount of the profit far exceeds the amount of back taxes owed.

“Massachusetts foreclosure law wrongly takes away people’s homes for even a small debt and allows municipalities to profit off their home equity well beyond the debt owed—leaving the homeowners vulnerable to housing and economic instability,” said sponsor Sen. Jo Comerford (D-Northampton). “These homeowners are losing hard-earned equity and life savings, losing homes with precious family memories and also facing housing instability due to predatory tax foreclosure practice.”