SENATE DOCKET, NO. 1472 FILED ON: 1/12/2009
SENATE . . . . . . . . . . . . . . No. 1751
The Commonwealth of Massachusetts
_______________
PRESENTED BY:
Ma
rk C
. Montigny
_______________
To the Honorable Senate and House of
Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the passage of the accompanying bill:
An Act to Establish a Moratorium on Foreclosures in the Commonwea
lth.
_______________
PETITION OF:
|
Name:
|
District/Address:
|
|
Ma
rk C
. Montigny
|
Second Bristol and Plymouth
|
|
William Lantigua
|
16th Essex
|
|
Barbara A. L'Italien
|
18th Essex
|
|
James B. Eldridge
|
Middlesex and Worcester
|
|
John F. Quinn
|
9th Bristol
|
|
Timothy J. Toomey, Jr.
|
26th Middlesex
|
|
Jennifer L. Flanagan
|
Worcester and Middlesex
|
|
Patricia D. Jehlen
|
Second Middlesex
|
|
Jennifer M. Callahan
|
18th Worcester
|
|
John W. Scibak
|
2nd Hampshire
|
|
John J. Binienda
|
17th Worcester
|
|
Denise Provost
|
27th Middlesex
|
|
Stephen R. Canessa
|
12th
Bristol
|
The Commonwealth of Massachusetts
_______________
In the Year Two Thousand and Nine
_______________
An Act to Establish a Moratorium on Foreclosures in the Commonwealth.
Be it enacted by the Senate and House of Representatives in General
Court assembled, and by the authority of the same, as follows:
SECTION 1.
WHEREAS the deferred operation of this act would tend to defeat its purpose which is to protect citizens of the Commonwealth, therefore it is hereby declared to be an emergency la
w necessary for the immediate protection of the public.
Notwithstanding the provisions of any general or special law to the contrary, no foreclosures shall be conducted for a period of one hundred and eighty (180) days after the effective date of this sec
tion, on any residential real estate located in the Commonwealth having a dwelling house with accommodations for four or less separate households and occupied in whole or in part by an obligor on the mortgage debt,
on
a
ny mortgage from which is presumptive
ly unfair by virtue of having one of the following:
(a) an adjustable rate loan with an introductory period of three years or less; and a debt-to income ratio in excess of 50 percent under the fully indexed rate; and the loan-to-value ratio is
97 perc
ent or greater, or the loan carries substantial pre-payment penalties or pre-payment penalties extend beyond the introductory period;
(b)
interest
only loans;
(c)
loans
with high points, fees or interest in violation of the Predatory Home Loan Pra
ctices Act, G.L. c. 183C §2.
No register of deeds or assistant recorder of the land court shall accept for recording or filing for registration any foreclosure
deed pursuant to a foreclosure
conducted in violation of this act during said 180-day period.
During the 180-day moratorium period, mortgage holders shall provide an authorized representative to enter into good faith negotiations with borrowers who so request, to modify the terms of their mortgages
, including, reducing the principal, lowering the
interest rate, eliminating pre-payment penalties, and other fees and costs so that qualified homeowners can obtain affordable mortgages that will allow them to stay in their homes. No fees or penalties shall accrue during the moratorium period.
