An Act enabling municipal pre-foreclosure mediation

This bill authorizes Massachusetts municipalities to establish local programs that help homeowners and lenders negotiate solutions before a home is foreclosed. The law defines specific terms such as "commercially reasonable alternative," which involves comparing the financial value of keeping a modified mortgage against the money a lender would get by selling the property. Under the new rules, both the borrower and lender must attend mediation sessions in person unless they agree otherwise, and homeowners are allowed to bring a lawyer, an interpreter, and up to three support persons to these meetings. If the parties cannot reach an agreement, the program manager issues a certificate confirming that a good faith effort was made. The legislation aims to provide a structured process for resolving debt disputes early, potentially preventing the loss of homes and reducing the number of properties that go through full foreclosure sales.