MA H1090

Creates a mandatory foreclosure prevention conference program requiring creditors and borrowers to engage in good-faith negotiations before any foreclosure sale can proceed on owner-occupied residential properties (1-4 units)

Creditors must obtain a Certificate of Compliance from a program-appointed conference monitor before conducting a foreclosure sale; sales without this certificate are invalid and constitute unfair/deceptive business practices under Chapter 93A

Eligible borrowers include those who receive a notice of right to cure, those current on payments but at imminent risk of default, those referred by a judge, and borrowers in active bankruptcy cases

Courts may impose sanctions on creditors who fail to participate in good faith, including tolling of interest, monetary penalties, attorney fees, dismissal of foreclosure action, or reduction/release of the lien

Program funded through fees paid by creditors upon filing Servicemembers Civil Relief Act cases, deposited into a segregated Foreclosure Prevention Fund; costs cannot be shifted to borrowers