Frequently Asked Questions on Chapter 206 of the Acts of 2007, An Act Protecting and Preserving Home Ownership, as Amended by Chapter 224 of the Acts of 2007

Learn more about common questions and answers related to Chapter 206 of the Acts of 2007, An Act Protecting and Preserving Home Ownership, as Amended by Chapter 224 of the Acts of 2007.

90 Day Notice of the Right to Cure - Section 35A of General Laws Chapter 244; Section 11 of Chapter 206 and Section 21 Chapter 206 as amended by Section 2 of Chapter 224 of the Acts of 2007

Do I now have a statutory right to cure a default on my mortgage loan?

  • Yes. Chapter 206 establishes a 90-day Right To Cure a default on a residential mortgage loan.

When does my 90-day Right To Cure begin?

  • Under the law, the 90-day Right To Cure begins when you receive a Notice of Default and Right To Cure from your lender or when the lender mails the notice to your last known address.

How often am I entitled to a 90-day Right To Cure on my mortgage loan?

  • Chapter 206 provides that the 90-day Right To Cure a default shall be granted once in any 5 year period regardless of the mortgage holder.

What if I cure my default during the 90-day period?

  • Your loan would be current.

May a mortgage lender charge me a fee for curing the default?

  • Chapter 206 prohibits any charge, fee, or penalty attributable to the Right To Cure from being charged to the borrower.

Can I be charged attorneys' fees relating to my default during the 90-day Right To Cure?

  • No. The law prohibits attorneys' fees from being charged to the borrower during the 90- day Right To Cure.

Can a mortgage lender charge a fee for a loan modification during the 90-day Right To Cure period?

May a mortgage lender expend funds during the 90-day Right To Cure to preserve its lien status on the mortgage property and charge the borrower for these expenditures during said 90 day period?

When may a mortgagee or mortgage servicer send the 90-day Notice of Right to Cure to a borrower in default?

  • It is a business decision of the mortgagee or mortgage servicer when to send the notice after a default by the borrower. The DOB would expect the industry to establish best practices governing the timing for sending the notice.

What is the toll-free telephone number of the DOB to be included in the 90-day Notice of Right to Cure?

  • By a directive of the Governor, the DOB is working in conjunction with NeighborWorks, Inc. to assist consumers who are facing foreclosure on their homes. If a borrower has received a 90-day Notice of Right to Cure, he/she should contact Neighborworks' HOPE hotline at (888) 995-4673 for assistance. If the borrower is unable to reach a loan counselor at that number, he/she should call the DOB at (800) 495-2265, extension 1501. Both numbers are to appear on the 90-day Notice.

Should a copy of the 90-day Notice of Right to Cure be filed with the DOB when it is sent to the borrower?

  • No. Not every 90-day Notice of Right to Cure needs to be filed with the DOB. See the following question.

When must the 90-day Notice of Right to Cure be filed with the DOB?

  • Chapter 206 of the Acts of 2007 mandates that a copy of the 90-day Notice of Right to Cure be filed by the mortgagee in any action or proceeding to foreclose, i.e. filing of a petition, on residential property. It is the position of the DOB that the reference to "an action or proceeding" to foreclosure refers to an action brought by the mortgagee under the Soldiers' and Sailors' Civil Relief Act. Upon filing such an action under this Act, a copy of the 90-day Notice of Right to Cure must be filed with the DOB.

How should the information on the 90-day Notice of Right to Cure be filed with the DOB?

  • The information must be filed electronically with the DOB. The DOB developed an on-line foreclosure database with required fields of information which will enable the electronic submission of the required filing. 

What is the timing requirement which the information required under General Laws Chapter 244, Section 14A and 35A must be submitted electronically to the DOB?

  • The information in the 90-day Notice of Right to Cure must be electronically submitted to the DOB within five business days of filing the petition under the Soldiers' and Sailors' Civil Relief Act in the Land Court. This will allow for the database to be a current source.

Will non-public information relating to the borrower or the underlying mortgage loan be redacted in the DOB's on-line database in accordance with General Laws Chapter 244, Sections 14A and 35A?

  • The electronic database will contain only fields which capture public information.

Will the DOB accept hard or mailed copies of the 90-day Notice of Right to Cure?

  • No. The DOB will not accept copies sent via facsimile, or mailed. All information must be submitted electronically through the on-line database.

Foreclosure accounting - Section 27 of General Laws Chapter 183 and Section 4 of Chapter 206 of the Acts of 2007

When does the requirement for the holder of a mortgage to provide the mortgagor a written notice with an itemized accounting of the disposition of the proceeds of a foreclosure sale go into effect?

  • The requirement for an itemized accounting of the proceeds of a foreclosure sale to the mortgagor went into effect on November 29, 2007.

When does the requirement for the mortgagee or anyone holding thereunder, to notify the DOB of the date of the foreclosure sale and the purchase price at the sale?

  • The notice of sale and purchase price is tied by statute to the foreclosure database which will maintain information of 90-day right to cure notices. Accordingly, notice of sale and purchase price are only to be provided to the DOB in conjunction with a previously filed 90-day Notice of Right to Cure.

Is the holder of the mortgage or its representatives required to provide an itemized accounting of the disposition of the proceeds of a foreclosure sale to the mortgagor if there is no surplus owed to the mortgagor from the foreclosure sale?

  • Yes. A mortgage holder or its representatives must provide an itemized accounting on all foreclosure sales to the mortgagor whether the sale results in a surplus or a deficiency.

Mortgage recording information - Section 6D of General Laws Chapter 183 and Section 3 of Chapter 206

If a mortgage (including an assigned mortgage) is recorded before July 1, 2008, is it required to include information about a licensed mortgage loan originator?

  • No. Since the law requiring mortgage loan originators does not take effect until July 1, 2008, any mortgage loan closed before that date is not required to include this information. Mortgage loans closed before July 1, 2008 but assigned after that date would also not be required to include this information.

If a mortgage (including an assigned mortgage) is recorded before July 1, 2008, is it required to include information about a licensed mortgage broker?

  • Yes. However, only mortgage loans closed after November 29, 2007, the date the new law went into effect, are required to include the name, address, and license number of the mortgage broker, if applicable, on the mortgage or subsequent assignment of the mortgage.

Feedback

Tell us what you think