Are you finding it difficult to be current in your mortgage payments and you wish to keep the home or property; relax because in the state of Massachusetts there exists channels through which you can prevent yourself from going the devastating event of being foreclosed on by your lender. The law in Massachusetts has also put in place rules which protect or rather shield you from unlawful and unnecessary foreclosure actions by the lenders (Massachusetts Foreclosure Prevention Law).
The Massachusetts foreclosure prevention law
This law was passed in 2012 and requires that the lenders show good faith towards avoiding a foreclosure. Therefore, this law ensures that the borrowers are given reasonable opportunity(s) to find alternatives to a foreclosure. This law does not protect all properties from foreclosures, properties meant for investment, vacation, or commercial purposes are not protected and the only properties protected are those with four or less units where at least one is the primary residence of the borrower in question.
The law also extends the borrowers a 150-day right to cure before the lender can foreclose on them however before then; the lender has to avail first the borrower with the right to pursue other alternatives failure to respond to the notice within 30 days after been served with right to cure notice the lender will use a notice of 90 days instead of the 150 days.
Modify your mortgage terms- your initiative
Contact you and try to negotiate with your lender(s); if all goes well in your favor you and your lender may arrange for lower monthly repayments which can be achieved through a lower interest rate, a reduction in the principal amount you owe, or have the loan time extended or maintain the monthly repayment but have the missed payments included in your loan thus being current and still pay everything you owe. Mortgage companies or banks may be reluctant to give you a modification therefore you must ensure they have received your request paper work for the modification. Do a thorough follow up by for instance making calls to the bank on weekly basis while maintaining a track of the details such as the dates you called, who responded, what they had to say and the documents you gave them.
Your lender’s offer
If the modification proposal comes from your lender, you will have to respond within 30 days and you will be assumed to have done so, if you can provide authentication of a true copy transmission to your lender, attestation of delivery through the United States Postal Service or an equivalent carrier or a telephone bill or pin register showing calls made to the lender. Failure to respond to this offer within the 30 days, leads to the reduction of 150-day right to cure to 90 days.
Other alternatives other than loan modification are also available in Massachusetts, this include short sale, Deed in lieu, bankruptcy, loan settlement among other, to get an advised solution contact and consult a HUD-approved housing counseling agency.
Sources
http://www.nolo.com/legal-encyclopedia/massachusetts-foreclosure-prevention-law.html
http://www.masslegalhelp.org/housing/foreclosures/avoiding