Business

Massachusetts Senate OK’s foreclosure bill

The Massachusetts Senate has passed a bill that is designed to prevent unnecessary foreclosures in the state.

Senators voted in favor of a modified version of the bill during their Wednesday afternoon session.

The proposal would set standards that force banks to analyze every loan before proceeding with a foreclosure and offer a reasonable modification where the analysis shows changing the loan is better for the bank than foreclosure.

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The Senate amended the bill to include provisions, such as the creation of a foreclosure mediation program that would bring mortgage lenders and homeowners together.

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Democratic Senator Karen Spilka of Ashland said the bill ‘‘makes sense,’’ as it benefits homeowners, banks, and mortgage company investors.

The state’s House of Representatives passed a modified version of the bill last month.

Associated Press