This new law will make significant changes to the state's foreclosure process.
Newly enacted provisions include;

1) A statutorily required demand letter giving residential mortgage borrowers 90 days to cure defaults. Only late fees and per diem interest may be charged to cure the default during the 90-day period.

2) If the mortgagor is seeking a Servicemembers Civil Relief Act judgment, a copy of the 90-day demand letter and an affidavit of compliance must be filed in the land court. Additionaly the letter must be filed with the Massachusetts Division of Banks regardless of whether a land court foreclosure action is initiated;

3) The mortgagor must be given a written accounting of how the proceeds from the foreclosure sale were applied;

4)  If the foreclosure sale takes place, the Division of Banks must be notified in writing of the sale date and the purchase price;

5) Mortgages, assignments of mortgages and the 90-day demand letter must include specific information regarding any mortgage broker and/or mortgage originator involved in the mortgage origination.

6) Tenants in a residential unit under an unexpired term for years (long term lease), or a lease with a definite term in effect at the time of foreclosure by sale shall be deemed a tenant at will.  Tenancy at will continues until terminated by landlord or tenant with one full rental period or 30 days prior notice, whichever is longer.

7) Foreclosure shall not affect the tenancy agreement if the tenant's rent is subsidized under MA or federal law.  Thus, a buyer of property at a foreclosure sale would take the property subject to any such tenancy.

The new law became effective 11/29/2007, but several aspects of the bill will take affect 5/1/2008.

To view the Bill in its entirety, please click here.

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, OH  and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 450 employees.  Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.