Bill > H1807

This bill establishes a foreclosure mediation program administered by the Massachusetts Office of Public Collaboration to provide homeowners (borrowers) and lenders (creditors) with an opportunity to negotiate alternatives to foreclosure. The bill defines key terms such as "residential property" (a primary residence with up to 4 households), "creditor" (any entity holding a mortgage loan), and "modified mortgage loan" (a loan altered from its original terms). When a creditor sends a default notice, they must also provide information about the mediation program and a request form, which the borrower can submit within 15 days. The mediation process involves an in-person session with a neutral third-party mediator, where the borrower and creditor's representative can discuss potential alternatives to foreclosure, such as loan modification, principal reduction, interest rate adjustment, or extended loan terms. During this process, the creditor cannot initiate foreclosure proceedings unless the mediator certifies that good faith efforts were made to find an alternative solution. Importantly, participation in the mediation program does not waive either party's legal rights, and the bill does not require creditors to modify mortgages against their will.

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https://malegislature.gov/Bills/194/H1807