New Massachusetts Foreclosure Law, August 4th, 2010

We all know that the fear of foreclosure has gripped many residents of the Bay state. But did you know that a new Massachusetts foreclosure law was just passed this week? Boston.com reprinted a statement from the Office of State Senator Patricia Jehlen that weighs in on the new foreclosure protection law. We are certain that many a Boston real estate lawyers are brushing up on their foreclosure knowledge this week.

The new law aims to protect not only distressed homeowners, but tenants from being evicted from foreclosed properties. Tenants can only be evicted from properties for just cause. Also, a tenant can not be evicted for nonpayment of rent unless there was written notice with the proper contact information given to the tenant. The contact information must be posted and delivered. This is a major protection for tenants. We have written about what a tenant can do if he or she has to face a foreclosure eviction in this blog before.

Senator Jehlen said that the law is intended to protect Bay state residents. She said: "I am happy to see this legislation finally passed. I think this legislation will go a long way toward protecting Massachusetts residents from foreclosure and eviction."

The new law also helps protect homeowners from predatory lending practices and from the dangers of foreclosure. It finally makes mortgage fraud a crime in Massachusetts.

The freshly passed legislation extends out the 90 day right to cure period to 150 days. The notice sent out to homeowners by banks must be more detailed. The right to cure is the ability of homeowners to pay off all past due payments without having to pay the full amount of the unpaid balance. Lenders can reduce the right to cure period back to 90 days if they attempt a good faith effort to work out a reasonable alternative to foreclosure.

If this seems a tad confusing, perhaps it may be useful to ask a Boston real estate attorney. A legal professional can go over what your new rights and protections are under this state law.

Published by Boston Real Estate News