Bill > H1083

This bill establishes the Massachusetts Foreclosure Mediation Program, which aims to facilitate alternatives to foreclosure for homeowners facing mortgage difficulties. The key provisions include: 1. Requiring mortgage lenders to send a notice to homeowners of their right to participate in the mediation program before initiating foreclosure proceedings. 2. Establishing a mediation process where a neutral third-party mediator facilitates discussions between the homeowner and the lender's representative to explore alternatives to foreclosure, such as loan modifications, principal reductions, or short sales. 3. Requiring lenders to provide certain financial documentation to the homeowner and the mediation program prior to the mediation session. 4. Prohibiting lenders from proceeding with foreclosure unless they have participated in the mediation program in good faith and made reasonable efforts to find an alternative to foreclosure. 5. Allowing the mediation program manager to set and collect fees for the mediation sessions, but limiting the homeowner's portion to no more than 15% of the total cost. 6. Requiring the mediation program manager to provide annual reports on the program's performance and outcomes to the state's Secretary of Housing and Economic Development.