Massachusetts residents struggling with mortgage debt and at the risk of foreclosure may soon find some peace of mind under a new House Bill. Last, week legislature attendees voted unanimously in favor of House Bill 4323, designed to prevent unlawful foreclosures.
All In Favor?
Both the Massachusetts House and Senate voted all in favor of approving the new bill that would essentially prevent financial institutions from foreclosing on properties unlawfully. Institutions will now be required to engaged in and prove they put forth good faith efforts towards helping homeowners review foreclosure alternatives, such as loan modifications. Banks will be required to offer loan modifications to homeowners if the amount of money received in the modification would exceed the amount eligible to be obtained in a foreclosure.
It is expected that the new bill would benefit 100,000 or more mortgages that are currently at risk for foreclosure in Massachusetts. However, the bills isn’t finalized and is headed back to the House and Senate for enactment before it can be officially approved by the Governor of Massachusetts.