Bill > S1130

This bill establishes the Massachusetts Foreclosure Mediation Program, a comprehensive initiative designed to help homeowners facing foreclosure explore alternatives to losing their homes. The program requires mortgage holders (creditors) to participate in a mediation process before initiating foreclosure, where a neutral third-party mediator facilitates discussions between the borrower and the creditor. During mediation, both parties will explore potential alternatives such as loan reinstatement, mortgage modification, principal reduction, interest rate adjustment, extended loan terms, or short sale/deed in lieu of foreclosure. Borrowers will be notified of their mediation rights in multiple languages and can request a mediation session within 30 days of receiving a foreclosure notice. Creditors must provide detailed financial documentation before the mediation, including proof of ownership and a net present value analysis. If mediation is unsuccessful but conducted in good faith, a certificate will be issued allowing the foreclosure process to proceed. The program includes protections for borrowers, such as ensuring their inability to pay mediation fees will not bar participation, and limits the borrower's mediation costs to 15% of the total. Importantly, the bill mandates annual reporting on the program's outcomes and explicitly states that participation does not waive either party's legal rights or require creditors to modify mortgage terms.

Budget and Finance, Justice

https://malegislature.gov/Bills/194/S1130