Massachusetts Bankruptcy Court: New Rule for Mortgage Modifications

02 Mar Massachusetts Bankruptcy Court: New Rule for Mortgage Modifications

Today, the Massachusetts Bankruptcy Court issued a new, emergency standing order pertaining to mortgage modifications. The order voids provisions in proposed loan modifications stating that the automatic stay will be lifted or waived after default on the loan modification payments. More can be found on my blog, here.

The order is an artful one: it will not stop mortgage companies from submitting mortgage modifications containing the forbidden terms, nor stop the Court from approving them. Instead, the terms pertaining to the automatic stay will just be void and unenforceable absent specific approval from the Court, which the Court appears to have no intention of giving.

You can read more about mortgage modifications and bankruptcy here.

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Nicholas Ortiz, Boston Bankruptcy Attorney

From Attorney Ortiz: We have been helping consumers and small businesses in Massachusetts successfully navigate through the bankruptcy process since 2002. We offer free initial consultations and payment plans. Call us at 617-716-0282 to discuss your debt relief options. Mention the Bankruptcy Law Network when you call!
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