The "super lien" is given priority over all other liens or mortgages except municipal liens. The statute allows that a receiver may borrow funds, grant mortgages on the property, and/or assign the priority lien to its creditor(s). Upon conclusion of the receivership, the receiver may petition the court to receive payment of their lien. If payment is not made, the receiver can foreclose on the property in order to pay off its own debts.
Benefits to Local Lenders
Receivership provides many potential benefits for Massachusetts communities struggling with foreclosure and property abandonment. The Rehabilitation of abandoned and blight properties not only addresses the public health and safety, but also the economic health of a community.
- can help stabilize and increase property values;
- provides municipal tax revenue, which affects schools and public works;
- provides a boost to local business and the local economy;
- creates employment opportunities;
- potentially provide lenders with CRA credit.
There are currently a number of lenders providing financing for receivers in Massachusetts. Lenders may grant a mortgage on the property or assign a construction loan file size 7MB to the receiver.
To learn more the Attorney General's Abandoned Housing Initiative or how you can be involved with financing receivership projects, complete this online form .