Bill > S765

This bill establishes a comprehensive Massachusetts Foreclosure Prevention Program designed to help homeowners avoid foreclosure through mandatory supervised conferences between borrowers and creditors. The program applies to residential properties with up to 4 rental units where the owner also resides, and requires creditors to make a good faith effort to explore alternatives to foreclosure before proceeding with a sale. Key provisions include: requiring creditors to provide notice to both the borrower and a state administrator when intending to foreclose; mandating a conference where loss mitigation options are thoroughly reviewed; establishing that a creditor must obtain a "Certificate of Compliance" from a trained conference monitor before conducting a foreclosure sale; providing for judicial enforcement with potential sanctions against creditors who do not participate in good faith; and creating a dedicated Foreclosure Prevention Fund to support program administration. The program offers protections for borrowers by ensuring they have an opportunity to discuss alternatives with their lender, with monitors facilitating the process and helping to identify potential solutions like loan modifications, short sales, or deed-in-lieu arrangements. Notably, the bill includes provisions to keep conference discussions confidential and prevents creditors from shifting program participation costs to borrowers.

Budget and Finance, Business and Industry

https://malegislature.gov/Bills/194/S765