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S 1130

An Act to facilitate alternatives to foreclosure

194th Legislature (2025-2026) Introduced by Adam Gómez

Creates a statewide foreclosure mediation program to evaluate and implement alternatives to foreclosure (e.g., loan modifications, repayment plans, short sales) to help homeowners

Bill reported favorably by committee and referred to the committee on Senate Ways and Means
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Bill Summary · S 1130

Summary — S.1130: "An Act to Facilitate Alternatives to Foreclosure" (Massachusetts)

Note: The materials provided contained multiple, inconsistent documents using the designation “S 1130” (including unrelated Idaho appropriation language). This summary focuses on the Massachusetts foreclosure bill text and docketed Senate file (Senate Docket No. 2314 / S.1130) titled “An Act to facilitate alternatives to foreclosure,” filed Jan. 17, 2025.

Purpose

Create a statewide foreclosure mediation program to encourage, evaluate, and implement commercially reasonable alternatives to foreclosure (for example, loan modifications, repayment plans, short sales) and to increase opportunities for homeowners to keep their principal residence or otherwise avoid foreclosure losses.

Key provisions

  • Establishes a Massachusetts Foreclosure Mediation Program administered by a mediation program manager — a neutral nonprofit or law firm selected by the Attorney General.
  • Creates definitions critical to the program (selected highlights):
    • “Mortgagor/Borrower”: an individual owner-occupant whose property is their principal residence.
    • “Creditor”: any entity that holds, owns, services, or controls a mortgage loan (includes servicers, investors, government-sponsored entities).
    • “Creditor’s representative”: a person with documented authority to negotiate and approve mortgage modifications.
    • “Commercially reasonable alternative”: determined by comparing net present value (NPV) of a modified loan versus expected net recovery from foreclosure, accounting for borrower circumstances.
    • “Net present value” and “net recovery following foreclosure”: specify accepted models (e.g., HAMP, FDIC, MassHousing) and items to include in foreclosure cost calculations.
  • Notice and referral requirements:
    • Mortgagees must concurrently send the foreclosure notice served on a borrower to the Mediation Program.
    • Where no statutory right-to-cure applies, mortgagees must send notice of intent to foreclose at least 90 days before initiating foreclosure and simultaneously notify the Program.
    • Upon receipt, the Program must notify borrowers of the right to mediation and provide a mediation-request form; the Program will also attempt telephone outreach to borrowers.
  • Mediator qualifications: mediators may include Attorney General staff, HUD-certified housing counselors, or personnel of the mediation program manager trained to standards set under the Massachusetts Supreme Judicial Court (Uniform Rules for Dispute Resolution, Rule 8).
  • Documentation standards: requires creditors to produce “proof of ownership” and unbroken chain-of-title documentation for the mortgage note and mortgage (addresses common foreclosing-party documentation issues).

Who is affected

  • Primary: residential owner-occupant borrowers (principal residence, up to 4 units) facing foreclosure in Massachusetts.
  • Secondary: mortgagees/creditors, servicers and their agents, housing counselors, mediators, Attorney General’s Office, courts (may see changed foreclosure timelines).
  • Program administrator: the nonprofit or law firm selected by the Attorney General to manage intake/notifications and run or coordinate mediations.

Timing and procedural status

  • Filed as Senate Docket No. 2314 / S.1130 on Jan. 17, 2025; petitioned by Senator Adam Gómez and referred to the Judiciary Committee.
  • A public hearing is scheduled for 10/21/2025 (01:00–05:00 PM in A-2) according to the materials provided.
  • The bill text inserts a new Section 35D into Chapter 244 of the Massachusetts General Laws; some process details in the text are truncated in the provided excerpt.

Potential impacts and considerations

  • Expected to increase use of loan modifications and other loss-mitigation options, potentially reducing foreclosure rates and related housing instability.
  • Imposes additional operational duties and potential costs on mortgagees/servicers (notification, participation in mediation, documentation production).
  • May slow foreclosure timelines (minimum 90-day notification and mediation processing), affecting creditor recovery schedules.
  • Fiscal impacts: costs for program administration (staffing, outreach, form processing) — the bill text does not include explicit appropriation language in the excerpt provided.
  • The bill’s effectiveness will depend on program funding, mediator capacity, enforceability of mediation outcomes, and servicers’ willingness to provide a representative with settlement authority.

If you want, I can:
- Pull relevant missing portions of the bill (mediation procedure and deadlines) if you provide the full text, or
- Draft a short one-page explainer for affected homeowners or servicers.

Compiled from official sources — confirm details with the bill’s official record.

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