Bill > S630

This bill aims to facilitate alternatives to foreclosure by establishing the Massachusetts Foreclosure Mediation Program (MFMP). The key provisions of the bill are: 1. The MFMP will be administered by a neutral not-for-profit organization or law firm experienced in foreclosure mediation and knowledgeable of mortgage foreclosure laws in Massachusetts. 2. Mortgagees must provide notice of foreclosure to the MFMP, which will then notify borrowers of their right to mediation and the foreclosure mediation request form. 3. The mediation process involves a neutral third-party mediator, the borrower or their representative, and the creditor's representative, who must provide proof of authority to negotiate alternatives to foreclosure. 4. The mediation period is limited to 120 days, and if an agreement is reached, the borrower has 7 days to review and sign the agreement. 5. The bill outlines the required information and documentation to be provided by both the creditor and the borrower during the mediation process. 6. The MFMP is responsible for developing guidelines and standards for mediator training and ensuring the security and confidentiality of information received. 7. The MFMP will also provide annual reports on the program's activities and outcomes, including the number of mortgagors notified, borrowers who attend mediation, and the results of the mediation process. The overall goal of this bill is to facilitate alternatives to foreclosure, such as loan modifications or short sales, through a structured mediation process, with the aim of helping homeowners retain their homes.

Business and Industry

https://malegislature.gov/Bills/192/S630