MS HB527

Establishes alternative foreclosure procedure for mortgages on principal residences requiring lender to offer loan modification opportunity before proceeding with foreclosure by advertisement.

Requires foreclosing party to mail borrower written notice containing default details, lender contact information, designated modification contact person, and list of HUD-approved housing counselors, with borrower having 14 days to request modification meeting.

Prohibits foreclosure proceedings for 90 days if borrower requests meeting with designated contact person, and suspends foreclosure if borrower and lender agree to loan modification and borrower remains current on modified payments.

Requires designated contact person to evaluate borrower for modification using specified criteria including targeting housing debt-to-income ratio of 38% or less, with options for interest rate reduction (minimum 3%), loan term extension to 40 years, principal deferral up to 20%, or fee elimination.

Allows borrower to file court action to convert foreclosure to judicial proceeding if lender violates procedures or if borrower qualifies for modification under the act; effective July 1, 2016, and does not apply to Mississippi Home Corporation mortgages.