For several years people in Massachusetts have been waiting for some serious support in battling the foreclosure crisis that has plagued the state since the country fell into a recession. As legislators have debated and proposed various housing recovery bills, homeowners in Worcester and around the state have been forced into the painful process of home foreclosure.
Some support may have finally arrived. As presented by the Massachusetts Division of Banks, all mortgage lenders must now consider loan modification and other non-foreclosure options to determine if pursuing one such option is less expensive than initiating a foreclosure. State officials believe that both homeowners and lenders will come out ahead under the new regulations as both parties will save money and further support the recovery of the local housing market.
While these regulations have been in the process of development over the last year, they have recently been finalized and are now in effect. An additional regulation that is now active prohibits lenders from starting foreclosures when homeowners have filed paperwork to start loan modification proceedings.
Experts believe that the new regulations will continue to reduce the number of new foreclosures across the state. As previously reported on this blog, foreclosures are down across the state and in Worcester County when compared to last year’s figures and the state’s new policies may encourage the continuation of this positive trend.
For individual homeowners whose homes have already fallen into foreclosure, public agencies will continue to offer debt counseling and other support to help people stay in their homes. Professionals in the field of real estate law are available to discuss foreclosure avoidance options and to assist borrowers who believe that their lenders may not be abiding by all mandated state regulations.
Source: Boston.com, “Regulations are now in effect that will prohibit Mass. foreclosures if loan modifications costs less,” Chris Reidy, June 26, 2013