A Bill to Stabilize Neighborhoods -- chapter 258 of the Acts of 2010 -- New Massachusetts Foreclosure Law
Date:
On Saturday August 7, Governor Patrick signed into a law “A Bill to Stabilize Neighborhoods” which had been approved by the Legislature on July 27, 2010 . A link to the bill is here.
The bill addresses the worsening foreclosure crisis in Massachusetts where there have been 7,431 foreclosures through the first six months of 2010 – a 56.7% percent increase over the same time period in 2009:
- Requires 150 cure period if lender does not negotiate a loan modification;
- Provides eviction protections to tenants in foreclosed properties who pay rent and comply with tenancy obligations;
- Provides additional consumer protections for reverse mortgages;
- Allows exemption from property taxes for nonprofits that rehabilitate a foreclosed property;
- Criminalizes mortgage fraud.
MLRI has prepared a Summary of Tenant Protections in the new Massachusetts law.