Bill > H1090

This bill establishes the Massachusetts Foreclosure Prevention Program, a comprehensive system designed to help homeowners avoid foreclosure through supervised conferences between borrowers and creditors. The program applies to residential properties with up to 4 rental units that serve as the borrower's primary residence, and includes specific provisions for various types of loans. When a creditor intends to foreclose, they must notify the program administrator, who then sends the borrower a notice explaining their right to participate in a conference. The conference, which can be virtual or in-person, requires the creditor to review all possible loss mitigation options with the borrower, first focusing on ways to help the homeowner retain their property and then exploring alternatives like short sales or deed-in-lieu of foreclosure. A trained conference monitor facilitates the process and can issue a "Certificate of Compliance" if the creditor makes a good faith effort to find a solution. If a creditor fails to participate meaningfully, they may face judicial sanctions, including monetary penalties, interest tolling, or even dismissal of the foreclosure action. The program is funded by a filing fee charged to creditors, which will be used to administer the program and conduct outreach to at-risk homeowners. The goal is to provide a structured, collaborative approach to preventing unnecessary foreclosures while protecting the interests of both borrowers and lenders.

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https://malegislature.gov/Bills/194/H1090