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.
Nicholas Ortiz, Boston Bankruptcy Attorney
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