Good news to report today! Massachusetts Attorney General Maura Healy has summarily dismissed a petition by the Massachusetts Alliance Against Predatory Lending (MAAPL) to repeal the Act Clearing Titles to Foreclosed Properties. The Act would automatically cure foreclosure related title defects after a one year waiting period.
In a three-page letter to Secretary of State William Galvin yesterday, Healy wrote, “I have concluded that it is not lawfully the subject of a referendum petition.” Healy’s main citation for the denial is a clause in the state constitution that says no law related to the power of the courts can be subject to a voter referendum.
As reported by Banker and Tradesman, Attorney Doug Troyer, co-chair of the Massachusetts Real Estate Bar Association’s Legislation Committee, said he thought the attorney general made the right decision. “It looked like the attorney general really took it into consideration, taking over 20 days to fully analyze all aspects in order to see if the petition could lawfully go to a referendum – and found that it couldn’t,” he said.
Opponents to the Act vow they will challenge it in court. However, they need to find a live case which may be difficult. Going forward, the Act will remain law, and after the one year waiting period, most Ibanez related title defects will be automatically cured by operation of law. Good news for the market!