Monday, August 09, 2010

Reverse Mortgages, Tenants in Foreclosure, Right to Cure and More!

On August 7, Governor Patrick signed S.2407: An Act to Stabilize Neighborhoods, which brought significant changes in a number of laws.

Reverse Mortgages (Sections 2-5): provides additional protections for consumers within certain income guidelines considering reverse mortgages. Most portions are effective in November. The required counseling will not be effective until the end February 2012. See Law About Reverse Mortgages for more info.

Tenants in Foreclosed Buildings (Section 6). New MGL c.186A was added which makes it more difficult to evict a tenant from a foreclosed building and provides specific guidance to both tenants and financial institutions faced with the situation. This law is effective immediately. See Law About Tenants in Foreclosed Buildings for more info.

Right to Cure in Foreclosure (Section 7). MGL c.244, s.35A was amended effective immediately to provide a 150-day right to cure under certain conditions. Section 8 reverts the law back to a 90-day right to cure in 2016. See Law About Foreclosure for more info.

Mortgage Fraud (Sections 9-11A).  Amends MGL c.266, s.33-34, and adds new MGL c.266, s35A and c.277, s.62C, effective immediately.

Abandoned Property Registry (Sections 12-13). Creates a new Mass. Abandoned Property Registry (MAP). Rules and regulations required for the registry must be adopted by  December 5, 2010.