Bill > S500

This bill aims to establish the Massachusetts Foreclosure Mediation Program, which would require mortgage lenders to participate in a mediation process with borrowers facing foreclosure. The key provisions include: 1. Requiring lenders to provide borrowers with notice of their right to mediation and a mediation request form when initiating foreclosure proceedings. 2. Establishing a mediation process where borrowers, lenders, and a neutral mediator work to find a commercially reasonable alternative to foreclosure, such as a modified mortgage loan, principal reduction, or short sale. 3. Prohibiting lenders from proceeding with foreclosure unless the mediator certifies that the lender participated in good faith and made reasonable efforts to find an alternative to foreclosure. 4. Requiring the costs of the mediation program to be shared between the parties, with the borrower's portion capped at 15% of the total cost and the inability to pay not being a bar to participation. 5. Providing for annual reporting on the program's outcomes, including the number of borrowers who receive counseling, loans restructured, and principal write-downs.

Business and Industry

https://malegislature.gov/Bills/190/S500