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HOUSE DOCKET, NO. 3467 FILED ON: 1/20/2023
HOUSE . . . . . . . . . . . . . . . No. 1404
The Commonwealth of Massachusetts
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PRESENTED BY:
Daniel Cahill and Tommy Vitolo
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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act protecting homeowners from unnecessary foreclosures.
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PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Daniel Cahill10th Essex1/20/2023Tommy Vitolo15th Norfolk1/20/2023Danielle W. Gregoire4th Middlesex1/26/2023James J. O'Day14th Worcester1/26/2023Rebecca L. RauschNorfolk, Worcester and Middlesex2/6/2023Samantha Montaño15th Suffolk2/7/2023 1 of 2
HOUSE DOCKET, NO. 3467 FILED ON: 1/20/2023
HOUSE . . . . . . . . . . . . . . . No. 1404
By Representatives Cahill of Lynn and Vitolo of Brookline, a petition (accompanied by bill,
House, No. 1404) of Daniel Cahill, Tommy Vitolo and others relative to protecting homeowners
from unnecessary foreclosures. The Judiciary.
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act protecting homeowners from unnecessary foreclosures.
Whereas, The deferred operation of this act would tend to defeat its purpose, which is to
Whereas, the purpose of this act is to codify existing law and ensure that homeowners receive the
protection intended by the legislature to avoid unnecessary foreclosures; and
Whereas, the deferred operation of this act would tend to defeat its purpose as stated
above, therefore it is hereby declared to be an emergency law, necessary for the immediate
preservation of the public peace, health, safety and convenience., therefore it is hereby declared
to be an emergency law, necessary for the immediate preservation of the public health.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1.
2 Section 35C of chapter 244 of the General Laws is hereby amended by striking out
3subsection (h) and replacing it with the following:
4 (h) In all circumstances in which an entity with a tax-exempt filing status under section
5501(c)(3) of the Internal Revenue Code, or an entity controlled by an entity with such tax exempt
6filing status— 2 of 2
7 a. Offers to purchase either a mortgage loan or residential property, no creditor shall
8require as a condition of sale or transfer to any such entity any affidavit, statement, agreement or
9addendum limiting ownership or occupancy of the residential property by the borrower and, if
10obtained, such affidavit, statement, agreement or addendum shall not provide a basis to avoid a
11sale or transfer nor shall it be enforceable against such acquiring entity or any real estate broker,
12borrower or settlement agent named in such affidavit, statement or addendum.
13 b. Obtains from a person acquiring or re-acquiring a residential property any mortgage,
14note, or security instrument encumbering such residential property that secures the contingent
15right of the entity to receive a share of the appreciation in value of such residential property upon
16the sale, conveyance, assignment, or other transfer thereof, upon refinancing of the first priority
17mortgage loan, or other payoff or satisfaction therof, or upon the occurrence of other events,
18including reaching a defined maturity date, said entity shall not be liable for monetary relief,
19injunctive relief, or other equitable relief at common law or by statute, including Chapter 93A,
20Chapter 140D, Chapter 183C, and/or Chapter 271, Section 49 of the General Laws, for the use or
21terms of said mortgage, note, or security instrument so long as such person is advised, in advance
22of the closing of such person’s acquisition or re-acquisition of such residential property, that
23such person will be required to give such a mortgage, note, or security instrument to such entity
24at the closing.
25 c. The Attorney General may make rules and regulations interpreting subsection 35C (h)
26b of this chapter.