Bill > H3560

This bill aims to facilitate alternatives to foreclosure by establishing the Massachusetts Foreclosure Mediation Program (MFMP). The key provisions of the bill include: 1. The MFMP will be administered by a neutral not-for-profit organization or law firm experienced in foreclosure mediation and familiar with programs to help homeowners avoid foreclosure. 2. Mortgage lenders must send a notice of the right to mediation to borrowers concurrently with the notice of the right to cure under existing law, and the MFMP will then send the borrower a notice of the right to mediation and a mediation request form. 3. Mediation sessions will be conducted by a neutral third-party mediator and involve the borrower, the borrower's representative or housing counselor, and the lender's representative with authority to negotiate alternatives to foreclosure. 4. Lenders must provide certain documentation, including proof of ownership, a net present value analysis, and an accounting of the debt, to the borrower and MFMP prior to mediation. 5. If mediation does not result in an agreement, the lender cannot accelerate the loan or initiate foreclosure proceedings unless the mediator certifies the lender participated in good faith. 6. The costs of the MFMP will be borne by the parties to mediation and a $50 surcharge on foreclosure complaint filing fees, and a borrower's inability to pay will not bar participation. 7. The MFMP will provide annual reports on the program's outcomes and effectiveness.

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https://malegislature.gov/Bills/191/H3560