Legislature Approves Foreclosure and Mortgage Fraud Protection Bill

Final consumer protection legislation has been sent to the Governor from the Senate and House that protects both homeowners and tenants from mortgage fraud and arbitrary evictions.

Home foreclosure continues to rise in the Commonwealth in spite of the improving economy.

"The economic climate has made it difficult for many residents to keep their homes," said State Senator Anthony Petruccelli whose district includes the North End.

"The bill implements a number of measures to assist residents in staving off foreclosure, while protecting tenants from unreasonable evictions," Petruccelli added.

The bill requires that tenants in foreclosed buildings can only be evicted for just cause.

A lender cannot evict a tenant for failure to pay rent unless a written notice with proper contact information has been posted and delivered.

However, it does not prohibit a lender from evicting tenants for valid reasons, such as using a unit for illegal purposes or not allowing the lender to enter the unit to make repairs.

In addition, the bill would criminalize residential mortgage fraud.

The bill also contains other measures of protection for all parties involved.

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