Thursday July 26, 2012

BOSTON (AP) -- The Massachusetts Legislature has sent to Gov. Deval Patrick a compromise version of a bill that aims to prevent home foreclosures by forcing mortgage lenders to offer modifications on certain "risky" loans.

State senators voted unanimously in favor of the legislation Thursday, one day after it was approved in the House.

It was then given final approval in both chambers.

The legislation would require lenders to assess a borrower's circumstances and determine whether the net value in changing an existing loan is more than the anticipated recovery from foreclosure. If so, the lender is required to offer a loan modification to the borrower.

It also prohibits lenders from foreclosing on properties without proper documentation and includes provisions to create a task force to study mediation programs.