New MA Law Tackles Foreclosures

With the number of new foreclosures at an all time high, a new state law takes effect today aimed at helping struggling homeowners stay in their homes.

A key provision of the new law is a 90 day "cooling-off" period. Previously, homeowners facing default were only given 30 days notice of foreclosure and lenders didn't have to give owners the chance to make back-payments.

Attorney General Martha Coakley says the new regulations will give the homeowner more time to understand the foreclosure process.

"More importantly, it gives the lenders and the holders of the mortgage time to see if there's an appropriate way to do a restructure or a work-out." Coakley says.

Another provision of the law requires that foreclosure notices be filed with the state Division of Banks, allowing state regulators to better track foreclosures and the lenders whose loans are failing.