Section 42: Mortgage foreclosures and evictions during federal government shutdown; protections for impacted federal workers

759 words·~3 min read·/ma/part-iii/title-iii/chapter-244/42

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[ Text of section added by 2025, 73, Sec. 55, effective November 25, 2025.]

Section 42.

(a)As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:

"Federal government shutdown'', any period in which all non-essential federal government functions cease as a result of a failure to enact a regular appropriations bill or continuing resolution.

"Impacted federal worker'', a resident of the commonwealth who, as a result of a federal government shutdown, is furloughed or excepted pursuant to 31 U.S.C. § 1342 or any other federal law requiring the person to continue to work without pay during a federal government shutdown, including, but not limited to, active-duty military, national guard and reserve components.

"Mortgagor'', a person whose mortgage obligations began before a federal government shutdown.

"Non-essential eviction'', an eviction of an impacted federal worker for nonpayment of rent during a federal government shutdown.

(b)Notwithstanding any other general or special law to the contrary, a creditor, mortgagee or person having estate in the land mortgaged, a person authorized by a power of sale pursuant to section 14 or right of entry or the attorney duly authorized by a writing under seal or the legal guardian or conservator of such mortgagee or person acting in the name of such mortgagee or person shall not, for the purposes of foreclosure of a residential property as defined in section 35B that is not vacant or abandoned and for which the mortgagor is an impacted federal worker or the tenants of the mortgagor are impacted federal workers:

(i)cause notice of a foreclosure sale to be published pursuant to said section 14;

(ii)exercise a power of sale;

(iii)exercise a right of entry; or

(iv)initiate a judicial or non-judicial foreclosure process; provided, however, that the mortgagor shall provide notice and documentation that they are an impacted federal worker or the tenants of the mortgagor are impacted federal workers and as a result the mortgagor is experiencing a significant financial impact from a federal government shutdown.

(c)A creditor or mortgagee shall grant a forbearance to a mortgagor of a mortgage loan for a residential property as defined in section 35Bof the General Laws if the mortgagor submits a request to the mortgagor's servicer, which includes an attestation made under pains and penalties of perjury that the mortgagor is an impacted federal worker or the tenants of the mortgagor are impacted federal workers and as a result the mortgagor has experienced a significant financial impact from a federal government shutdown. The forbearance shall be for not more than 180 days. Fees or penalties beyond the amounts scheduled and calculated as if the mortgagor made all contractual payments on time and in full under the terms of the mortgage contract shall not accrue during the period of forbearance granted under this subsection. A payment subject to the forbearance shall be added to the end of the term of the loan unless otherwise agreed to by the mortgagor and mortgagee. Nothing in this subsection shall prohibit a mortgagor and mortgagee from entering into an alternative payment agreement for the payments subject to the forbearance. The mortgagee shall not furnish negative mortgage payment information to a consumer reporting agency related to mortgage payments subject to forbearance under this act; provided, however, that the mortgagee shall comply with the Fair Credit Reporting Act, 15 U.S.C. §&sec; 1681, et. seq.

(d)Nothing in this section shall be construed to relieve a mortgagor from the obligation to pay their mortgage or restrict the ability of a creditor, mortgagee, person having estate in the land mortgaged, a person authorized by a power of sale or right of entry, an attorney duly authorized or a person acting in the name of such mortgagee or person from recovering mortgage payments.

(e)Notwithstanding any general or special law to the contrary, a creditor or mortgagee shall not be required to grant a forbearance to a mortgagor of a mortgage loan for a residential property under subsection

(b)if the mortgagor's request for such forbearance is made after the expiration date under subsection (g).

(f)A mortgagee or servicer shall not be liable for actions taken in good faith reliance on documentation provided by a mortgagor pursuant to this section.

(g)This section shall be in effect during a federal government shutdown until 30 days after a federal government shutdown has ended; provided, however, that the governor may postpone such expiration by not more than 75 days after a federal government shutdown has ended.