Thousands of Massachusetts residents at risk of foreclosure are receiving notices in the mail alerting them to their eligibility to request a loan modification, Attorney General Martha Coakley announced Thursday. 

The new loan modification statute, signed into law on Aug. 3, 2012, requires creditors holding certain mortgage loans at risk of foreclosure to notify borrowers of their rights to pursue a loan modification or other foreclosure alternatives. Close to 10,000 borrowers have already been sent notices about the opportunity, and many are seeking guidance from the HomeCorps Program to submit the necessary documents within the required 30-day period. Thousands more are expected to be provided with a loan modification opportunity as the notification process continues.

"It is extremely important for all eligible borrowers to respond to this notice and take full advantage of any opportunity to prevent foreclosure," Coakley said in a statement. "State law now sets standards to ensure creditors promote reasonable loan modifications, and our HomeCorps program is here to help homeowners through that process."  

Under Massachusetts law, borrowers with loans that meet a certain criteria have the right to apply for a loan modification if they submit a complete financial package to the bank within 30 days of the notice. Under the new Section 35B of G.L. Chapter 244, the servicer is required to take "reasonable steps" and make a good faith effort to avoid foreclosure, including an assessment of the borrower’s ability to make an affordable monthly payment.