Bill > H3282

This bill, concerning judicial foreclosures, proposes to repeal an existing section of Massachusetts General Laws Chapter 183 and insert new provisions into both Chapter 183 and Chapter 244. The core change is that any foreclosure on real property within the Commonwealth must now begin by filing a civil foreclosure complaint in either the superior or housing court of the county where the property is located. This process, after the lender (mortgagee) has provided all legally required notices to the borrower (mortgagor), will be initiated as a claim for breach of contract, following standard civil procedure rules. Importantly, residential borrowers will be allowed to present all possible defenses against the foreclosure and the original mortgage loan agreement. The court will have the power to alter the mortgage terms or provide other suitable remedies, including awarding legal costs and attorney fees to the party that wins the case. Furthermore, borrowers will retain a six-month right to "redeem" their property, meaning they can still reclaim it by paying off the debt, even after a judgment has been entered.