MS HB13

Establishes an alternative foreclosure procedure for mortgages on principal residences requiring lenders to provide borrowers a 90-day opportunity to negotiate loan modifications before proceeding with foreclosure by advertisement.

Requires foreclosing parties to mail borrowers written notice containing the default amount, contact information for the designated negotiator, a list of HUD-approved housing counselors, and information about modification rights.

Requires borrowers to contact a housing counselor within 14 days to request a modification meeting, and prohibits foreclosure for 90 days after notice is sent if a meeting is requested.

Mandates lenders use a loan modification program targeting a housing debt-to-gross income ratio of 38% or less through interest rate reductions (minimum 3%), extended amortization periods (up to 40 years), principal deferral (20% or less), or fee elimination.

Allows borrowers to file suit in chancery court to enjoin foreclosure if proper notice was not served or if they qualify for modification under Section 5 but the lender proceeds with foreclosure illegally; effective July 1, 2017.