HB 5410 - Foreclosure Mediation Program Modifications

• Eliminates the June 30, 2010 sunset date for the foreclosure mediation program, making it permanent for residential mortgage foreclosures with return dates on or after July 1, 2008.

• Expands mortgagee obligations in mediation to include providing original mortgage documents, payment history, fee itemization, and contact information for settlement authority; requires good faith mediation efforts including disclosure of loan modification denials and restrictions.

• Protects bona fide tenants in foreclosed properties by requiring 90-day notice to vacate and preventing summary process actions until the later of the lease expiration date or 90 days after title vests in the mortgagee, with exceptions for non-lease-related eviction reasons.

• Requires mortgagees, lienholders, or successors to offer tenants "cash for keys" incentives equal to the greater of: (1) security deposit plus interest, (2) two months' rent, or (3) $2,000.

• Authorizes courts to approve foreclosure by market sale for properties with four or fewer families, allowing parties to propose marketing plans with court-approved deadlines for purchase offers and sales within specified timeframes.