Source: https://www.ncsl.org/research/financial-services-and-commerce/foreclosures-2016-legislation.aspx
Timestamp: 2020-01-27 09:04:10
Document Index: 254150456

Matched Legal Cases: ['§89', '§89', '§1971', '§323', '§31', '§31']

Foreclosures 2016 Legislation
Heather Morton 4/21/2016
The housing market continues to be turbulent. Delinquent payments and the number of homeowners entering foreclosure continue, although the numbers are slowing improving. Job losses and continued unemployment continue to drive the delinquency and foreclosure increases. The employment recovery is progressing slowly.
In 2016, lawmakers in 31 states and Puerto Rico have introduced legislation regarding foreclosures. Ten bills and resolutions have been enacted or adopted thus far. The list below contains legislation regarding regulating foreclosure consultants and distressed property purchasers, amending the foreclosure process to address concerns regarding so-called robo-signing and protecting tenants' rights who are renting homes facing foreclosure.
Returned to secretary of Senate pursuant to Joint Rule 56 2/1/16
Existing law imposes various requirements to be satisfied prior to exercising a power of sale under a mortgage or deed of trust. Existing law, with respect to residential real property containing up to four dwelling units, requires a mortgagee, trustee, beneficiary, or authorized agent to provide to the mortgagor or trustor a copy of the recorded notice of default and a copy of the recorded notice of sale. This bill instead requires the mortgagee, trustee, beneficiary, or authorized agent to provide the mortgagor or trustor with a copy of the notice of default indicating the recording date and a copy of the notice of sale indicating the recording date. Existing law requires a legal owner to maintain vacant residential property purchased at a foreclosure sale or acquired by the owner through foreclosure under a mortgage or deed of trust and authorizes a governmental entity to impose a civil fine, as specified, for a violation. Existing law requires a governmental entity, prior to imposing a fine or penalty for failure to maintain a vacant property, as specified, to provide the owner of that property with a notice of the violation and an opportunity to correct that violation. This bill provides that a trustee under a deed of trust or a trustee named in a recorded substitution of trustee is not a legal owner or owner, as applicable, for purposes of the provisions described above. This bill also provides that a trustee under a deed of trust is not responsible for any obligation or failure to maintain or register a property subject to foreclosure. Existing law requires a mortgagee, beneficiary, or authorized agent to record a rescission of a notice of default or cancel a pending trustee sale, if applicable, upon the borrower executing a permanent foreclosure prevention alternative. Existing law, in the case of a short sale, requires the rescission or cancellation of the pending trustee’s sale to occur when the short sale has been approved and proof of funds or financing has been provided, as specified. This bill makes a clarifying change by eliminating the reference to rescission in the case of a pending trustee’s sale. Existing law limits the amount of trustee’s or attorney’s fees that may be charged in connection with the enforcement of certain terms of obligation upon default in payment under a mortgage or deed of trust prior to reinstatement of a monetary default, or until the notice of sale is deposited in the mail, or otherwise at any time prior to the decree of foreclosure, to a base amount not to exceed $300 for an unpaid principal balance sum of $150,000 or less, or $250 plus specified additional percentages of unpaid principal sums, if the unpaid principal balance exceeds $150,000. Existing law, in lieu of an authorized charge, limits the amount of trustee’s or attorney’s fees after the notice of sale is deposited in the mail and until the property is sold by power of sale, to a base amount not to exceed $425 for an unpaid principal balance sum of $150,000 or less, or $360 plus specified additional percentages of unpaid principal sums, if the unpaid principal balance exceeds $150,000. This bill increases the base limitations on the amount of those trustee’s or attorney’s fees by $50. Existing law, before any sale of property can be made under the power of sale contained in any deed of trust or mortgage, requires notice of the sale to be given. Existing law requires the notice of sale to contain specified information regarding the property and the sale, and to be recorded with the county recorder, as specified. Existing law, on and after April 1, 2012, also requires the notice of sale to contain language notifying potential bidders of specified risks involved in bidding on property at a trustee’s sale. This bill revises the language notifying potential bidders of specified risks involved in bidding at a trustee’s sale.
California S.B. 1150
Existing law imposes various requirements to be satisfied prior to exercising a power of sale under a mortgage or deed of trust. Existing law gives a borrower, as defined, various rights and remedies against a mortgage servicer, mortgagee, trustee, beneficiary, and authorized agent in regards to foreclosure prevention alternatives, as defined, including loan modifications, which is commonly referred to as being part of the California Homeowner Bill of Rights. Existing law defines a mortgage servicer as a person or entity who directly services a loan, or is responsible for interacting with the borrower, and managing the loan account on a daily basis, as specified. This bill prohibits a mortgage servicer or lender, as defined, upon notification that a borrower has died, from recording a notice of default until the mortgage servicer or lender does certain things, including requesting reasonable documentation of the death of the borrower from a claimant, which is someone claiming to be a successor in interest, that is not a party to the loan or promissory note and providing a reasonable period of time for the claimant to present the requested documentation. The bill deems a claimant a successor in interest, as defined, upon receipt by a mortgage servicer or lender of the reasonable documentation regarding the status of the claimant. The bill requires a mortgage servicer or lender, within 10 days of a claimant being deemed a successor in interest, to provide the successor in interest with information about the loan, as specified. The bill requires a mortgage servicer or lender to allow a successor in interest to either assume the deceased borrower’s loan, except as specified, or to apply for foreclosure prevention alternatives on an assumable loan, as specified. The bill provides that a successor in interest who assumes an assumable loan and wishes to apply for a foreclosure avoidance alternative has the same rights and remedies as a borrower under specified provisions of the California Homeowner Bill of Rights. The bill authorizes a successor in interest to bring an action for injunctive relief to enjoin a material violation of specified provisions of law and would authorize a court to award a prevailing successor in interest reasonable attorney’s fees and costs for such an action. The bill defines terms for these purposes and make various findings and declarations.
Signed by governor 4/15/16, Chapter 97
Limits the premium that a person may charge for offering assistance in recovering the balance of the purchase price of foreclosed property after all liens and claims against the property have been satisfied; reduces the period during which a public trustee must hold certain funds; voids any contract for payment of a finder's fee during a certain number of months of the trustee's custody of the funds, and caps such fee, imposes additional requirements on a finder's contract.
Postponed indefinitely 3/3/16
Under current law, the owner of real property that is sold in foreclosure for more than the amount owed to the foreclosing party (usually a bank holding a mortgage on the property) may be entitled to the proceeds of the sale in excess of the amount owed to the foreclosing party. This excess is known as an "overbid". The overbid is first applied to satisfy the claims of junior lienors that give notice of their lien to the public trustee but do not redeem their interests during a specified time. After that, title to the property vests in the purchaser at the foreclosure sale or the last of the junior lienors to redeem, if such a redemption has occurred. Certain junior lienors are defined as ineligible to receive any portion of the overbid. These include junior lienors that miss filing deadlines or that settle their lien claims for a discount. The bill adds the last redeeming lienor to the list of persons who are ineligible to receive overbid funds, ensuring that to the extent any overbid remains, it goes to the original owner.
H.B. 5292
Provides notice to tenants of property that is being foreclosed upon.
H.B. 5339
This bill increases the civil penalties for failure to register residential property (1) subject to a foreclosure action or (2) obtained through foreclosure. The bill increases, from $100 to $1,000, the penalty for noncompliant plaintiffs in a foreclosure action. It increases, from $250 to $1,250, the penalty for noncompliant owners who take title through foreclosure. The bill does not change the maximum cumulative penalties municipalities can assess against these entities. Under existing law, there is a registration system for tracking (1) entities that initiate a foreclosure action on residential property and (2) owners of residential property obtained through foreclosure.
Failed Joint Favorable deadline 3/30/16
Requires the Connecticut Law Revision Commission to study the adequacy of state processes governing the foreclosure of tax liens by a municipality.
H.B. 5567
This bill creates a new process whereby a court may enter a judgment of loss mitigation which allows (1) certain underwater mortgages to be modified without a junior lienholder's consent or (2) the mortgagor (borrower) to satisfy his or her obligation by transferring the property using a transfer agreement. The bill also makes several changes to certain existing foreclosure prevention programs. It modifies the foreclosure by market sale process by allowing a mortgagee (lender), under certain circumstances, to file a motion for judgment of foreclosure by market sale within 30 days of receipt of a sales contract or the expiration or satisfaction of any contingencies. It also clarifies when a listing agreement may be used. With regard to the foreclosure mediation program, the bill authorizes mediators to excuse certain parties from mediation sessions. It also eliminates the: 1. requirement that a mortgagee send a copy of any loss mitigation affidavit to the mediator and mortgagor, 2. restriction that disqualifies a mortgagor from the program when he or she consents to foreclosure by market sale, and 3. requirement that a mortgagee provide a certificate of good standing to a mortgagor who has completed the mediation program. The bill eliminates a requirement that lenders notify certain unemployed and underemployed homeowners of the availability of foreclosure protection. It also (1) prohibits a state marshal from carrying out a foreclosure-related eviction order sooner than five days after the court executes it and (2) requires the marshal to use reasonable efforts to find and notify a defendant of an eviction at least five days before notifying the town of the eviction. The bill also makes technical and conforming changes.
Makes certain improvements to the foreclosure mediation program, to emphasize Connecticut's public policy commitment to establishing a coherent state foreclosure policy through the foreclosure mediation program, and to encourage the federal courts to abstain under the Burford doctrine from hearing and deciding foreclosure cases that would be best served by the foreclosure mediation program.
This bill creates a new foreclosure process called “statutory power of sale,” which gives a mortgagee (lender) authority to foreclose a mortgage on certain properties without a court action. The bill allows the mortgagee to sell the property to the highest bidder at a public auction when, among other things, (1) the mortgage is in default and (2) the default is not cured within a specified period or the cure period has expired. The cure period must be at least 60 days after the mortgagor has been notified of the mortgagee's intention to foreclose by statutory power of sale. This foreclosure process does not apply if the (1) property that secures the mortgage is a residential property, (2) original mortgage on the property was less than $5 million, or (3) mortgage deed is granted by a religious corporation. A statement in the deed that the mortgagor is not a religious organization establishes that fact. A mortgagee may only use this process if the power of sale is included in the original mortgage deed or incorporated by reference in a mortgage deed granted by a corporation or partnership, including limited partnership, limited liability partnership, or limited liability company. If the statutory power of sale is incorporated by reference, the deed must include notice to the mortgagor (borrower). The bill: 1. establishes notice requirements, including notice to the borrower, residential tenants, and subordinate lienholders on record; 2. requires the lender to appoint a commissioner of the Superior Court (an attorney) who must conduct the sale and it specifies where the sale may take place; 3. allows the mortgagor, under certain circumstances, to stop the foreclosure sale by applying to the court for relief; 4. establishes how the court must distribute the sale proceeds and convey the title; 5. establishes a court process that allows subordinate lienholders to preserve their interests in the property (the court may appoint a state referee to hear the case); and 6. does not limit a mortgagee's right to proceed under other judicial remedies, such as foreclosure by sale or strict foreclosure.
This bill reduces, from 18 percent to eight percent, the annual interest rate that a municipality must charge on (1) delinquent property taxes and (2) property sold for tax purposes. In doing so, it reduces the interest rate on certain other delinquent taxes and assessments that are linked to the interest rate towns charge on delinquent property taxes. It prohibits municipalities from assigning tax liens valued at $5,000 or less and imposes new restrictions and requirements on the entities that purchase tax liens from municipalities (i.e., assignees). The bill: 1. limits an assignee's right to enforce a tax lien to foreclosure and a law suit on the debt; 2. requires the assignee to (a) conduct a repayment evaluation in good faith (i.e. honesty in fact), (b) provide a written payoff statement upon request, and (c) meet specific written notification requirements before beginning the foreclosure process (see below); 3. requires the assignee, upon beginning a foreclosure action, to file an affidavit demonstrating that it conducted the good faith repayment evaluation; 4. limits attorney's fees that may be awarded to an assignee; 5. specifies that all aspects of a tax lien foreclosure by an assignee must be commercially reasonable (The bill does not define “commercially reasonable.”); and 6. specifies that a violation of any of these requirements is deemed an unfair or deceptive trade practice under the Connecticut Unfair Trade Practices Act. The bill makes three main changes to the existing Emergency Mortgage Assistance Program (EMAP) established by the Connecticut Housing Finance Authority (CHFA). (EMAP provides temporary monthly mortgage payment assistance to eligible mortgagors of one-to-four family owner-occupied residential property who are facing foreclosure due to financial hardship.) First, it expands the types of mortgages that are eligible for an EMAP loan to include reverse mortgages and home equity conversion mortgages. Second, it requires CHFA, starting July 1, 2016 and within available funds, to (1) provide assistance payments to “homeowners” (i.e., owner-occupants) of residential property subject to “lien debt” (i.e., tax or sewer liens or condominium association assessments or fees) and (2) adopt procedures to implement these changes. The bill generally extends existing EMAP procedural and program requirements to also apply to lien debt assistance payments. Third, it prohibits CHFA from disqualifying a mortgagor or homeowner from receiving mortgage or lien debt assistance based solely on the discharge of his or her debt through bankruptcy. The bill also makes other minor, technical, and conforming changes.
Improves consumer protections for homeowners facing foreclosures from tax lienholders, protects homeowners by regulating tax lien sales and defining the rights and responsibilities associated with a tax lien purchased from a municipality, and protects consumers by expanding the emergency mortgage assistance program to certain homeowners.
Removes the requirement that a mortgagee provide a mortgagor with a certificate of good standing, at the request of such mortgagor, where such mortgagor has completed a foreclosure mediation program and remained current on payments for a period of three or more years following the completion of such program.
Provides that certain owners of real property against which a notice of code violation has been sent who fails to correct such violation within 48 days shall be subject to a daily fine; provides for a lien, creation, and foreclosure; amends Title 44 of the O.C.G.A., relating to property, so as to provide for a lien against lots by a homeowners' association; provides for the establishment of a postforeclosure registry; provides for the submission of certain information by the purchasers of real property at a foreclosure sale; provides for a presumption that such information is valid for all legal notices.
S.B. 2855
Makes numerous amendments to Hawaii's mortgage rescue fraud prevention act, chapter 480E, Hawaii Revised Statutes, for consistency with the federal Mortgage Assistance Relief Services Rule.
Signed by governor 4/5/16, Chapter 364
Amends existing law to provide that a purchaser at a trustee's sale shall be entitled to dispose of titled or nontitled personal property under certain conditions.
Passed House 4/14/16
Amends the Mortgage Foreclosure Article of the Code of Civil Procedure. Provides that the provisions of a subsection concerning the federal Making Home Affordable program are operative and shall become inoperative on Jan. 1, 2018 (instead of Jan. 1, 2016) for all actions filed under the Article after Dec. 31, 2017 (instead of Dec. 31, 2015), in which the mortgagor did not apply for assistance under the Making Home Affordable Program on or before Dec. 31, 2016 (instead of Dec. 31, 2015). Provides that the changes apply to all cases pending and filed on or after the effective date.
S.B. 3166
Amends the Forcible Entry and Detainer Article of the Code of Civil Procedure. Provides that in an action brought by a mortgagee who assumes control of the residential real estate in foreclosure through a judicial foreclosure, consent foreclosure, common law strict foreclosure, or delivery of a deed in lieu of foreclosure, the plaintiff's notice of motion shall use the term "plaintiff" instead of "landlord" whenever "landlord" appears in the notice.
Specifies that the statute concerning the state regulation of mortgage foreclosures does not affect or preempt a political subdivision's authority to: (1) regulate the maintenance, upkeep, or repair of real property within the jurisdiction of the political subdivision, including real property subject to a mortgage foreclosure action; or (2) act as authorized under the unsafe building law, or other applicable state law, with respect to real property within the jurisdiction of the political subdivision, including real property subject to a mortgage foreclosure action; in accordance with state law.
Amends the statutes concerning condominium liens and homeowners association liens to provide that if the mortgagee of a first mortgage, or if any other purchaser, obtains title to: (1) a condominium unit; or (2) real estate in a subdivision; as applicable, as a result of foreclosure of the first mortgage, the acquirer of title is not liable for the share of the common expenses or assessments that are chargeable to the unit or real estate and that became due before the date the judgment of foreclosure is issued by the court, if the judgment of foreclosure is issued by the court after June 30, 2016. (Current law provides that the acquirer of title through foreclosure is not liable for the share of the common expenses or assessments that became due at any time before the acquisition of title by the acquirer.)
Signed by governor 3/21/16, Public Law 32
Amends the statute concerning criminal trespass to specify that a person commits criminal trespass if the person knowingly or intentionally enters or refuses to leave the real property of another person after having been prohibited from entering or asked to leave the real property by a law enforcement officer when the real property is: (1) vacant real property or a vacant structure (both as defined by the statute concerning the abatement of vacant structures and abandoned structures); or (2) designated by a municipality or county enforcement authority to be abandoned property or an abandoned structure. Provides that a person who knowingly or intentionally damages, defaces, or permanently removes an object from real property that is the subject of a mortgage foreclosure proceeding commits foreclosure mischief, a Class B misdemeanor. Increases the penalty to a Class A misdemeanor if the damage caused is between $750 and $50,000, and to a Level 6 felony if the damage caused is $50,000 or more. Establishes a defense if the damage, removal, or defacement was the result of repair, renovation, replacement, or maintenance performed in good faith.
Passed Senate 2/2/16
Provides that a person who knowingly or intentionally damages, defaces, or permanently removes an object from property that is the subject of a mortgage foreclosure proceeding commits foreclosure mischief, a Class B misdemeanor. Increases the penalty to a Class A misdemeanor if the damage caused is between $750 and $50,000, and to a Level 6 felony if the damage caused is $50,000 or more. Establishes a defense if the damage, removal, or defacement was the result of repair, renovation, replacement, or maintenance performed in good faith. Amends the statute concerning criminal trespass to specify that a person commits criminal trespass if the person knowingly or intentionally enters or refuses to leave the property of another person after having been prohibited from entering or asked to leave the property by a law enforcement officer when the property is: (1) vacant real property or a vacant structure (both as defined by the statute concerning the abatement of vacant structures and abandoned structures); or (2) designated by a municipality or county enforcement authority to be abandoned property or an abandoned structure.
Signed by governor 3/21/16, Public Law 54
Provides that the following statutes are not intended to provide the owner of real estate subject to the issuance of process under a judgment or decree of foreclosure any protection or defense against a deficiency judgment for purposes of the borrower protections from liability that must be disclosed on a specified form required by amendments to a federal rule concerning mortgage disclosures: (1) The statutes governing the payoff of, and short sales involving: (A) first lien mortgage transactions; and (B) consumer credit sales and consumer loans under the uniform consumer credit code. (2) The statute allowing the owner of real estate subject to the issuance of process under a judgment or decree of foreclosure to waive, with the consent of the judgment holder, the time limitations that would otherwise apply to the issuance of process with respect to the judgment or decree of foreclosure.
To conference committee 3/22/16
Requires a secured party to record an instrument of writing transferring residential property by the later of 30 days after the entry of a court order ratifying a foreclosure sale of the residential property or 30 days after the entry of a court order resolving a specified motion; provides that no transfer tax may be assessed on a secured party that records an instrument of writing transferring residential property within 20 days after the entry of the court order ratifying the foreclosure sale of the property; etc.
Withdrawn from further consideration 2/22/16
Establishes that, on and after the filing of an action to foreclose a mortgage or deed of trust on residential property, the secured party shall be responsible for maintenance of the property until the foreclosure sale occurs; requires the secured party to submit a registration to the Foreclosed Property Registry within 30 days after the filing of a foreclosure action on residential property; requires the registration to be in a specified form and contain specified information; establishes fees; applies the Act prospectively; etc.
Passed House 3/16/16
Requires the person authorized to make a foreclosure sale to give written notice of the proposed sale to a specified condominium or homeowners association that, at least 30 days before the date of the proposed sale, has recorded a statement of lien against the property; requires the trustee, within 14 days after the postponement or cancellation of a foreclosure sale, to send a notice that the sale was postponed or canceled to the record owner and, if applicable, to the specified condominium or homeowners association by pre-paid mail; etc.
Establishes that, on and after the filing of an action to foreclose a mortgage or deed of trust on residential property, the secured party shall be responsible for maintenance of the property until the foreclosure sale occurs; requires the secured party to submit a registration to the Foreclosed Property Registry within 30 days after the filing of a foreclosure action on residential property; requires the registration to be in a specified form and contain specified information; establishes fees; etc.
Passed both houses 4/6/16
Passed both houses 4/7/16
Requires a specified notice of an action to foreclose the right of redemption to be sent to a homeowners association or a condominium association; requires a plaintiff in an action to foreclose the right of redemption on property to be liable for the payment of specified assessments or fees incurred after the date of judgment foreclosing the right of redemption; authorizes a specified action to be filed to collect specified assessments or fees; etc.
Withdrawn from further consideration 3/7/16
Increases, from $1,000 to $5,000, the maximum civil penalty that a local jurisdiction in Montgomery County may enact by local law for failure to submit a required registration to the Foreclosed Property Registry.
Alters the information that is required to be contained in the initial registration of a residential property in the Foreclosed Property Registry in the Department of Labor, Licensing, and Regulation to include the county in which the property is located; and requires the Department to promptly send an electronic copy of the initial registration of a residential property to the appropriate county official and, on request, to the appropriate official of the municipal corporation in which the residential property is located.
Authorizes a secured party to petition the circuit court for leave to immediately commence an action to foreclose the mortgage or deed of trust on specified vacant and abandoned property; authorizes a county, municipal corporation, homeowners association, or condominium to notify a secured party of any vacant and abandoned property located in the county, municipal corporation, homeowners association, or condominium in a specified manner; specifies the contents of a specified notice; etc.
Requires owners of rented or foreclosed properties to check for abandoned animals.
Prohibits transfer of foreclosed property to land bank authority before auction sale.
Requires judicial foreclosure for certain residential mortgages.
Establishes procedures for the foreclosure of mortgages by advertisement under which a borrower must be given an opportunity to meet with a lender regarding modification of a mortgage loan on a principal residence before foreclosure proceedings may be begun; prohibits a party from beginning foreclosure proceedings by advertisement if the prescribed procedures have not been followed or the applicable time limits have not expired, or if the parties have agreed to modify the loan and the borrower is not in default; requires a foreclosing party, before proceeding with a foreclosure sale by advertisement, to mail to the borrower a written notice containing specified information, including the name of a designated contact person who will have the authority to make modification agreements and a list of approved housing counselors; allows the borrower to bring an action to enjoin the foreclosure if the required notice was not served; requires the borrower to contact a housing counselor if he or she wishes to work out a modification, and requires the counselor to schedule a meeting with the designated contact person; provides that foreclosure proceedings may not be begun until 90 days after the notice was sent, if the borrower requests a meeting; requires the borrower, the designated person, or the housing counselor to calculate a modified payment if the meeting does not result in an agreement; requires the Mississippi Home Corporation to prepare a list of approved housing counselors; amends §89-1-55 and 89-1-57 to conform to the provisions of this bill.
Establishes, as an alternative to any other foreclosure procedure authorized by law, procedures for the foreclosure of mortgages by advertisement under which a borrower must be given an opportunity to meet with a lender regarding modification of a mortgage loan on a principal residence before foreclosure proceedings may be begun; prohibits a party from beginning foreclosure proceedings by advertisement if the prescribed procedures have not been followed or the applicable time limits have not expired, or if the parties have agreed to modify the loan and the borrower is not in default; requires a foreclosing party, before proceeding with a foreclosure sale by advertisement, to mail to the borrower a written notice containing specified information, including the name of a designated contact person who will have the authority to make modification agreements and a list of approved housing counselors; allows the borrower to bring an action to enjoin the foreclosure if the required notice was not served; requires the borrower to contact a housing counselor if he or she wishes to work out a modification, and requires the counselor to schedule a meeting with the designated contact person; provides that foreclosure proceedings may not be begun until 90 days after the notice was sent, if the borrower requests a meeting; requires the borrower, the designated person, or the housing counselor to calculate a modified payment if the meeting does not result in an agreement; requires the Mississippi Home Corporation to prepare a list of approved housing counselors; amends §89-1-55 and 89-1-57 to conform to the provisions of this bill.
This bill requires a mortgage company or its loan servicing agents to fully disclose the terms of any notes or deeds of trust to any and all persons having a recorded interest in real property within 30 days of a request or not less than 30 days prior to the start of any foreclosure proceeding. If a mortgage is in default, anyone having a recorded interest will have 30 days to satisfy the default regardless of who is liable on the loan. Any authorized lender making a reverse mortgage loan must allow for the repayment of the loan after the death of the person who entered into the loan. The lender must disclose the terms of the loan to any heirs of the real property within 30 days of a request or not less than 30 days prior to the start of any foreclosure proceeding and allow for a repayment period of at least 15 years charging interest at the average rate on mortgage loans in effect as of the date of death. The heir must be named in a will or in letters of administration as an heir or must file an affidavit of death with the recorder of deeds identifying himself or herself as an heir in order to be entitled to obtain the loan information. Any personal representative must be named in a will or appointed by the probate court.
This act repeals provisions of law which provide that a sale made by a mortgagee, secured party, or personal representative with power of sale pursuant to a mortgage or security agreement is valid and binding upon the mortgagor and debtor, and that such sale shall foreclose all right and equity of redemption of the property sold. The act provides that beginning Aug. 28, 2016, all foreclosure proceedings shall be handled judicially.
Under current law, any city and St. Louis County may establish a semiannual registration fee of up to $200 for vacant properties. This act provides that the current law shall not preempt Kansas City from adopting an ordinance requiring the registration of vacant properties or any parcel in the process of mortgage foreclosure and the payment of a registration fee in an amount determined by the city if the fee is approved by a majority of the city's registered voters.
Failed to pass Senate 1/6/16
Establishes the "Mortgage Assistance Pilot Program."
A.B. 333
A.B. 1029
A.B. 2028
Establishes the “New Jersey Residential Foreclosure Transformation Act.”
A.B. 2036
Passed Assembly 2/15/16
A.B. 2952
S.B. 1631
A.B. 2953
A.B. 3346
Revises residential property mortgage foreclosure process.
S.B. 1593
Provides foreclosure forbearance for certain residential borrowers and exempts certain lenders that offer sustainable mortgage modifications.
S.B. 1832
S.B. 7171
A.B. 9394
Relates to requiring a bank to notify a municipality when the bank files a lis pendens for a foreclosure.
A.B. 9565
S.B. 6911
Establishes the community reinvestment program to restore residential properties and prevent foreclosures; establishes the community reinvestment program fund council.
A.B. 9655
S.B. 7295
Permits a municipality to compel a mortgagee to either complete a mortgage foreclosure proceeding or to issue a certificate of discharge of the mortgage for any property which has been certified abandoned pursuant to §1971 of the real property actions and proceedings law.
S.B. 6259
Amends §§323.47, 1303.16, 1303.38, 2303.26, 2327.01, 2327.02, 2327.04, 2329.01, 2329.151, 2329.17, 2329.18, 2329.19, 2329.20, 2329.21, 2329.26, 2329.271, 2329.28, 2329.30, 2329.31, 2329.33, 2329.34, 2329.39, 2329.45, 2329.52, 2329.56, 2909.07, 5302.01, 5721.371, and 5721.39 and to enact sections 2308.01, 2308.02, 2308.03, 2308.04, 2329.152, 2329.153, 2329.154, 2329.211, 2329.311, 2329.312, 5302.31, 5721.372, and 5721.373 of the Revised Code to establish expedited actions to foreclose mortgages on vacant and abandoned residential properties, permits private selling officers to conduct judicial and execution sales of real property, states the intent of the General Assembly regarding mortgage foreclosure actions, revises the Commercial Paper Law relating to mortgages and lost instruments, and makes other changes relative to foreclosure actions.
Passed House 4/11/16
Provides for the certification of mortgaged property as vacant and abandoned in an action for mortgage foreclosure, possession, quiet title or similar action to enforce an obligation in a mortgaged property, for effect of certification and for additional sheriffs' fees.
Passed House 3/7/16
Creates the Assistance Mortgagor Act in order to require the creditor of a mortgage loan in arrears, before initiating any legal process that can culminate in a lawsuit charging money foreclosure, it is offered to the alternative of mitigating damage only after having completed the process in its completeness, and the mortgagor to know whether or not you qualify for such alternatives, then the mortgagee may commence legal proceedings in the courts of Puerto Rico.
Puerto Rico H.R. 1446
Orders the House Committee on Ways and Means to investigate the level of compliance and good faith actions carried out by banking institutions and/or mortgage investors as part of the processes to loss mitigation foreclosure lawsuits filed in courts.
Orders the House Committees on Judiciary and Housing and Urban Development to research the state of affairs of the exercise of the action of the right to repurchase, as this is guaranteed by Article 1.425 of Civil Code, for notes to ensure commercial and residential loans as well as the possible interference of this right by the funds with so-called, vultures.
Signed by governor 2/9/16, Joint Resolution No. 5
H.B. 7145
This bill imposes a penalty of $2,000 upon financial institutions failing to promptly record foreclosure deeds and pay outstanding taxes. Most holders of a private mortgage would be exempt from the penalty requirements. The bill also requires that foreclosure deeds be recorded within 30 days after the date of the foreclosure sale.
H.B. 7241
H.B. 7281
Withdrawn at sponsor’s request 3/2/16
H.B. 7391
This bill expedites the foreclosure procedure on vacant property, and amends laws on tax sales in order to, among other things, establish priorities of tax liens, clarify the effect of late recordings and simplify procedures in the event of a void sale.
H.B. 7259
This bill increases the fines for failing to file a foreclosure deed to $100 per day. The bill also requires mortgagees, upon serving a notice of intent to foreclose against a mortgagor, to file a copy of that notice in the land evidence records of the city or town in which the property is located and designate an agent for service of process within the state.
H.B. 7532
This bill amends the rules for newspaper publication of notices of condominium lien foreclosure.
H.B. 7540
This bill amends the rules for the mailing of notices of condominium lien foreclosure by adding a post-sale notice to the unit owner, and grants the unit owner a right of redemption.
This bill increases the fines for failing to file a foreclosure deed to $100 per day. The act also requires mortgagees, upon serving a notice of intent to foreclose against a mortgagor, to file a copy of that notice in the land evidence records of the city or town in which the property is located and designate an agent for service of process within the state.
Signed by governor 4/19/16
Substituted 4/7/16
Revises the notice provisions pertaining to a condominium association when the association forecloses on a lien against a unit owner for assessments levied against the unit.
Signed by governor 3/28/16, Chapter 325
This bill enacts and amends provisions related to foreclosure of residential rental property. This bill: under certain circumstances, allows a preexisting tenant to continue to occupy, for a limited amount of time, a residential rental property after a forced sale at public auction; repeals a sunset provision; eliminates a sunset repeal date; and provides a repeal date for certain sections.
Signed by governor 3/25/16, Chapter 305
This bill amends, enacts, and repeals provisions related to non-judicial foreclosure. This bill: amends provisions related to the appointment or resignation of a trustee; enacts provisions related to joinder of a trustee in a legal action against a beneficiary that does not involve the obligations of the trustee under the law or the trust deed; amends provisions related to notice of default; provides that a trustee in a trustee's sale may require a successful bidder to make a deposit; provides that a successful bidder in a trustee's sale who fails to pay the bid amount forfeits the bidder's deposit; provides that a trustee shall provide an unrecorded copy of a signed trustee's deed to a purchaser upon the purchaser's request; amends a provision limiting the time within which a person may bring a non-judicial foreclosure action; amends a provision related to notice of a foreclosure proceeding on a reverse mortgage; and repeals a provision related to notice to a trustor of intent not to defer notice of sale.
Failed to pass Senate 2/15/16
Provides that, in lieu of newspaper advertisements, foreclosure sales shall be advertised at the courthouse and on the website of the circuit court for the county or city in which the property to be sold is located, and that the clerk shall place a small notice in a newspaper having a general circulation in the city or county in which the property to be sold is located informing the public of the location of such advertisements.
Signed by governor 4/1/16, Chapter 196
Modifies expenditures from the foreclosure fairness account with regard to: (1) The counselor referral hotline; (2) The provision of housing counseling activities to benefit borrowers; (3) The office of the attorney general to be used by the consumer protection division; (4) The office of civil legal aid for contracting with qualified legal aid programs for legal representation of homeowners in matters relating to foreclosure; and (5) The department of commerce for implementation and operation of the foreclosure fairness act.
Signed by governor 3/29/16
Amends and reenacts §31-17-8 and §31-17-17, all relating to exceptions from certain requirements for certain mortgage modifications or refinancing loans; authorizes exception from certain requirements for mortgage modifications or refinancing loans made in participation with and in compliance with the federal Homes Affordable Modification Program or any other mortgage modification or refinancing loan eligible under any government sponsored enterprise requirements or funded through any federal or state program or litigation settlement; and allows exceptions from nullification or actions brought for certain mortgage modifications or refinancing loans made in participation with and in compliance with the federal Homes Affordable Modification Program or any other mortgage modification or refinancing loan eligible under any government sponsored enterprise requirements or funded through any federal or state program or litigation settlement.
Enrolled 3/23/16
Relates to the redemption period and notice of sale applicable to a foreclosure action involving noncommercial property and procedures regarding abandoned property in a foreclosure action
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