State Foreclosure Laws & Policy Archives

Local Solutions to Protect Heirs Property Owners from Property Tax Foreclosure

February 6, 2026

Heirs property owners are at an elevated risk of losing their home to property tax foreclosure. These owners of inherited homes are disproportionately likely to be older adults living and people of color. Targeted policy solutions can make a significant difference in reducing the rate of property tax foreclosure on heirs property, preventing housing instability…

Amicus Brief in Supreme Court Property Tax Foreclosure Case, Pung v. Isabella County

December 8, 2025

NCLC’s amicus brief in the Supreme Court property tax foreclosure case, Pung v. Isabella County, argues that the sale proceeds from a public auction in a tax foreclosure are not the just compensation the former owner of the property is entitled to under the Takings Clause of the Constitution, particularly in states where the only…

NCLC and GBLS Testimony in Opposition to MA S.705 & H.1106: An Act Relative to Home Investments

November 18, 2025

NCLC and GBLS provided written testimony in opposition to MA S.705 & H.1106: An Act relative to home investments. This is an industry bill that is being run across the country that defines shared appreciation agreements as not being residential mortgage loans, thus exempting them from federal and state mortgage lending rules and protections.

Testimony in Support of MA S.731/H.1145 - An Act Regulating Certain Mortgages; Support for Regulating HEIs and SAMs

November 18, 2025

This testimony provides support for a bill that would regulate shared appreciation mortgages & home equity “investment” loans by clarifying these products are loans, providing more precise disclosures, a cap on amounts that can be collected from the homeowner, required pre-loan counseling, and other requirements.

Written Testimony in Support of Massachusetts Zombie Second Mortgage Bill

October 21, 2025

Testimony of National Consumer Law Center and Greater Boston Legal Services in support of S1071/H 1983 – An Act relative to unlawful practices in the servicing and foreclosure of a subordinate mortgage.

Fact Sheet: Protecting Massachusetts Homeowners from Zombie Second Mortgages

October 20, 2025

S.1071 / H.1983: An Act relative to unlawful practices in the servicing and foreclosure of a subordinate mortgage provides a crucial lifeline for these homeowners. This legislation targets the predatory practices of zombie second mortgage investors and protects homeowners from unfair and deceptive tactics. It brings transparency and accountability to a system that has allowed…

What States Can Do to Protect Homeowners from Home Equity "Investment" Loans

September 3, 2025

To protect homeowners, states can classify HEI loans as mortgages subject to consumer protections, require caps on the maximum repayment amount, and mandate counseling for borrowers.

Massachusetts H.1106 Will Legalize Hiding Dangerous Mortgage Terms

November 21, 2025

This is a Fact Sheet in opposition to MA S.705 & H.1106: An Act relative to home investments. This is an industry bill that is being run across the country that defines shared appreciation agreements as not being residential mortgage loans, thus exempting them from federal and state mortgage lending rules and protections.

Fact Sheet: Protecting Homeowners from Zombie Second Mortgages

February 20, 2025

Remember the subprime mortgage crisis of the early 2000s? One toxic product that contributed to the crisis was the “80-20 mortgage,” where homeowners took out a first and second mortgage simultaneously. When the housing bubble burst, these second mortgages, often held by investors, became worthless. Many homeowners, understandably, believed these second mortgages were dead and…

Fact Sheet for Regulating Shared Appreciation Mortgages; Massachusetts S.731 / H.1145

November 14, 2025

In November 2024, a provision in the Economic Development bill (Section 269) created a dangerous loophole for homeowners by granting a blanket waiver of liability for non-profit Shared Appreciation Mortgages (SAMs), stripping away crucial consumer protections and leaving homeowners vulnerable to predatory lending practices. S.731 / H.1145 closes the loophole created by Section 269 and…

The CFPB Protects People From Abusive Debt Collection Practices

January 29, 2025

The Consumer Financial Protection Bureau (CFPB) enforces consumer protection laws and protects people from financial companies engaged in unfair, deceptive, and abusive practices. Since its creation, the CFPB has leveled the playing field between companies that treat consumers fairly and those that do not, obtaining more than $21 billion in relief for over 205 million…

Zombie Second Mortgage Resources

October 3, 2022

These NCLC Digital Library resources explain what zombie second mortgages are, why they are such a problem, and ways homeowners can stop foreclosures.

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