MS HB1169

Establishes an alternative foreclosure procedure requiring lenders to notify borrowers of default and provide an opportunity to modify the mortgage loan before proceeding with foreclosure by advertisement on principal residences.

Requires the foreclosing party to mail written notice to the borrower containing the default details, lender contact information, a designated negotiation contact person, and a list of HUD-approved housing counselors prepared by the Mississippi Home Corporation.

Prohibits foreclosure proceedings for 90 days if the borrower requests a meeting within 14 days of receiving notice, and requires a housing counselor to schedule a meeting between the borrower and the lender's designated contact person.

Establishes loan modification eligibility criteria targeting a housing-related debt-to-gross-income ratio of 38% or less, with options including interest rate reductions (minimum 3%), extended amortization periods (up to 40 years), principal deferral (up to 20%), or fee elimination.

Allows borrowers to file suit to enjoin foreclosure if proper notice was not served or if they are eligible for modification under the prescribed criteria, with courts authorized to convert advertisement foreclosures to judicial foreclosures under specified circumstances.