The Massachusetts House of Representatives unanimously passed House Bill 4087, “An Act to Prevent Unlawful and Unnecessary Foreclosures.” The bill would require lenders to comply with certain notice requirements and to account for various factors before entering foreclosure proceedings on residential homeowners, including: (1) the borrower’s ability to pay; (2) the value of a modified loan compared to the value of a foreclosure recovery; and (3) the interest of the lender. Under the bill, if a modified loan is worth more than the expected foreclosure recovery, the lender would be required to offer a modified loan. The Senate must now consider the bill and it is expected to be finalized by the end of the legislative session on July 31, 2012. Click here for the bill.
Alert May 29, 2012