MS HB234

Requires lenders to provide written notice to borrowers at least 90 days before foreclosing on principal residences, including contact information for a designated loan modification officer and a list of HUD-approved housing counselors.

Borrowers have 14 days after receiving notice to request a meeting with the lender's designated contact person to negotiate loan modification, during which time foreclosure proceedings are halted.

Establishes loan modification criteria targeting a housing debt-to-income ratio of 38% or less through 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 lenders violate modification procedures, and permits conversion to judicial foreclosure if borrowers qualify for modification.

Exempts mortgages held by the Mississippi Home Corporation and applies only to foreclosure sales published after the bill's July 1, 2015 effective date.