An Act to facilitate alternatives to foreclosure

This bill creates a new section in Massachusetts law to establish a formal mediation program aimed at helping homeowners facing foreclosure explore alternatives to losing their homes. It defines key terms such as "creditor," "mortgagor," and "commercially reasonable alternative" to set the framework for negotiations between lenders and borrowers. The legislation authorizes the Attorney General to select a neutral organization to manage a mediation program staffed by trained mediators who can facilitate discussions about loan modifications and other options. By incorporating specific financial calculations, the bill requires that any alternative to foreclosure be compared against the likely financial recovery from a foreclosure sale to ensure it is in the best interest of all parties. Ultimately, the act seeks to provide a structured process for resolving mortgage disputes before they result in the loss of residential property.