Bill > H1144

This bill establishes the Massachusetts Foreclosure Mediation Program, which aims to facilitate alternatives to foreclosure for homeowners. The key provisions include: 1. Creation of the Massachusetts Foreclosure Mediation Program, administered by a neutral third-party mediation program manager. 2. Requirement for lenders to send a notice of right to mediation to homeowners before initiating foreclosure. 3. Mediation sessions between homeowners, their representatives, and lenders' representatives to explore alternatives to foreclosure, such as loan modifications, principal reductions, or short sales. 4. Prohibition on lenders from accelerating notes or initiating foreclosure unless they have participated in the mediation program in good faith and made reasonable efforts to find an alternative to foreclosure. 5. Establishment of a $50 surcharge on foreclosure complaint filing fees to fund the program, with homeowners' portion of the mediation fee capped at 15% of the total cost. 6. Annual reporting requirements on the program's outcomes and effectiveness. The overall goal of the bill is to provide a structured process for homeowners and lenders to explore alternatives to foreclosure and promote more sustainable housing outcomes.

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https://malegislature.gov/Bills/192/H1144