Foreclosure Crisis Sparks Arson Worries
Brockton Officials Search For Solutions
POSTED: 7:15 am EDT April 10,
2008
UPDATED: 7:32 am EDT April 10,
2008
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BROCKTON, Mass. -- Foreclosed homes burning to the ground are part of new fears surfacing among community officials as local leaders prepare to address the foreclosure crisis.NewsCenter 5's Gail Huff reported that there are concerns about arson fires becoming a problem around the state as more and more properties are abandonded and become vacant.
Foreclosure Crisis Sparks Arson Worries Back in the early 1990s, when the real estate market tanket, many properties succumbed to arson and officials don't want history repeating itself. In Brockton, at least six houses burned down over the winter and state Fire Marshal Stephen Coan fears there will be a similar surge if something isn't done proactively to address the foreclosure crisis. He's bringing together banking regulators with members of the real estate community to see what can be done.In Washington, D.C., Massachusetts U.S. Rep. Barney Frank will hold a hearing Thursday on a proposal that would provide cities with $300 billion to buy up abandoned properties.The housing rescue package being drafted by Frank, the Financial Services Committee chairman, would have the Federal Housing Administration step in to back $300 billion in refinanced loans for 1 million or more homeowners who otherwise might face foreclosure. Key elements of the measure, which the Senate is expected to approve Thursday, are large tax breaks for homebuilders and credits for people who buy foreclosed properties, as well as $4 billion in grants for communities with the highest foreclosure rates to buy and rehabilitate foreclosed properties.Boston's Mayor Thomas Menino is expected to testify at the hearing.
Foreclosure Crisis Sparks Arson Worries Back in the early 1990s, when the real estate market tanket, many properties succumbed to arson and officials don't want history repeating itself. In Brockton, at least six houses burned down over the winter and state Fire Marshal Stephen Coan fears there will be a similar surge if something isn't done proactively to address the foreclosure crisis. He's bringing together banking regulators with members of the real estate community to see what can be done.In Washington, D.C., Massachusetts U.S. Rep. Barney Frank will hold a hearing Thursday on a proposal that would provide cities with $300 billion to buy up abandoned properties.The housing rescue package being drafted by Frank, the Financial Services Committee chairman, would have the Federal Housing Administration step in to back $300 billion in refinanced loans for 1 million or more homeowners who otherwise might face foreclosure. Key elements of the measure, which the Senate is expected to approve Thursday, are large tax breaks for homebuilders and credits for people who buy foreclosed properties, as well as $4 billion in grants for communities with the highest foreclosure rates to buy and rehabilitate foreclosed properties.Boston's Mayor Thomas Menino is expected to testify at the hearing.Copyright 2008 by TheBostonChannel.com. The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
