Attorney General Martha Coakley advocated for legislation that would prevent unnecessary foreclosures before the Chelsea Chamber of Commerce today.

The proposed bill would establish standards that require banks to analyze loans prior to proceeding with a foreclosure and offer a reasonable loan modification when analysis shows modifying the loan is more profitable for the bank than foreclosure.

"This bill would help homeowners achieve loan modifications, allowing people to stay in their homes and avoiding the negative impact of increased abandoned properties in our communities," said Coakley.  "It does this without asking the banks to sacrifice their bottom lines to do it.  Addressing the foreclosure crisis is the single biggest thing we can do to help restore a healthy economy."

AG Coakley said she believes that loan modifications are not occurring in Massachusetts on the scale needed to prevent further harm to communities and families.