The Massachusetts House of Representatives has passed a bill that would establish standards to protect loan borrowers from unnecessary foreclosures.
State representatives passed a modified version of the proposed legislation Wednesday. It now goes to the state Senate.
Attorney General Martha Coakley proposed the measure, designed to block foreclosures by requiring loan modifications when it is in the financial interest of the borrower and the lender.
The bill 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.
In a statement following the bill's passage Coakley said it would help people remain in their homes without requiring banks to make sacrifices.