Mass.gov-

Friday, August 3, 2012 – Governor Deval Patrick today signed “An Act Preventing Unlawful and Unnecessary Foreclosures.” The new law expands important consumer protections and continues the Commonwealth’s national leadership on foreclosure prevention.

“This legislation establishes strong consumer protections for borrowers that are unparalleled in other states,” said Governor Patrick. “Foremost among these protections is the requirement for creditors to take reasonable steps to avoid foreclosure for certain mortgage loans. Creditors now must determine whether the value of modifying the loan outweighs the likely value of foreclosure and, if so, the creditor must make the loan modification. This provision ensures that borrowers will be given every reasonable opportunity to remain in their homes.”

The provisions of the new law also mandate that lenders prove loan ownership prior to taking foreclosure action. The law includes new protections that prohibit lenders from misrepresentation, unfair costs and imposition of fees for services not performed.

“This new law will put Massachusetts in a strong position to rebound from the housing market decline and recover from the foreclosure crisis,” said Attorney General Martha Coakley. “This bill establishes first-in-the-nation standards which promote reasonable loan modifications, keep people in their homes, prevent abandoned properties in our communities, and don’t require banks to sacrifice the bottom line. We thank Governor Patrick, Speaker DeLeo, Senate President Murray, Chairman Costello, Chairman Petruccelli and the Legislature for their leadership on this important issue.”

[MASS.GOV]

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