2012 Home foreclosure act may help those struggling with mortgage
In August of 2012, Governor Patrick signed into law "Act Preventing Unlawful and Unnecessary Foreclosures". This spelled bad news for lenders but may help a homeowner who is facing a home foreclosure. This law allows judges to force lenders to modify a home loan if the lender cannot demonstrate they have worked with borrowers to restructure their loans.
Debate and contention
Many industry experts feel this new law offers immediate benefit but creates long-term issues including higher interest rates. However, for a homeowner who is desperately trying to keep their home, this may be an option that must be explored. After all, people do not take out a mortgage with the intention of defaulting on their loans.
Massachusetts foreclosure laws
The Commonwealth of Massachusetts laws regarding foreclosure are extremely confusing. In most cases, a lender may start the process without going through a court. Lenders need only provide proper notification to the homeowner, advertise in a county newspaper for three weeks then hold a public sale of the property. These powers are granted in mortgage notes using a clause called "power of sale".
Solution oriented changes
For a homeowner who is behind, the new act is very helpful. Now a homeowner can attempt to work with their lender to find a solution. Loan modification can help you keep your home by extending your payment period, reducing your principal balance and even eliminating accrued interest payments resulting from non-payment.
If you are struggling with your mortgage and you feel that a loan modification may work for you, contact The Law Office of Robert W. Kovacs, Jr. for help. We are well-qualified to help with loan modification and when necessary, with a Massachusetts bankruptcy. We are committed to doing everything possible to assist you with a loan modification and using any legal means necessary to keep you from losing your home.