Source: https://www.ncsl.org/research/financial-services-and-commerce/foreclosures-2014-legislation.aspx
Timestamp: 2020-07-14 16:58:10
Document Index: 158939011

Matched Legal Cases: ['§10', '§10', '§49', '§38', '§49', '§4', '§3206', '§89', '§89', '§443', '§1901', '§2308', '§2329', '§29', '§29', '§57', '§57']

Foreclosures 2014 Legislation
In 2014, lawmakers in 32 states and Puerto Rico introduced legislation regarding foreclosures. Forty-seven bills and resolutions were enacted or adopted. 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.
NOTE:Please note the summaries should be used for general informational purposes and not as a legal reference. If you have questions regarding a specific case involving a mortgage or foreclosure, please contact an attorney in your state. NCSL is unable to provide assistance or advice in individual cases.
Under existing law, a person has one year to redeem real property that is sold for nonpayment of taxes, that is foreclosed on, or that is sold pursuant to the execution on a judgment of a court. This bill reduces the redemption period of such real property to 60 days and provides for prospective application for sales pursuant to a foreclosure or court judgment.
Signed by governor 4/22/14, Chapter 129
Specifies that “anti-deficiency judgment” protection does not apply to mortgages and deeds of trust that originate after Dec. 31, 2014 for the following types of property: (i) Owned by a person who is engaged in the business of construction and selling dwellings that were acquired by the person in the course of that business and that is subject to a mortgage or deed of trust given to secure payment of a loan for construction of a dwelling on the property for sale to another person; (ii) Contains a dwelling that was never substantially completed; and (iii) Contains a dwelling that is intended to be utilized as a dwelling but is never actually utilized as a dwelling.
Establishes a foreclosure mediation program.
Arizona S.B. 1472 Specifies that anti-deficiency judgment protection does not apply to mortgages or deeds of trust that secure loans originated from and after Dec. 31, 2014, for any of the following: (a) property that is owned by a person who is engage in the business of designing, constructing or selling dwellings before the initial sale; (b) property that contains a dwelling that is not substantially completed; and (c) property that contains a dwelling that is intended to be utilized as a dwelling but that is not actually utilized as a dwelling. Stipulates that for deeds of trust that secure loans originated from and after Dec. 31, 2014, for property the is two and one-half acres or less and utilized for either a single one-family or a single two-family dwelling, no action can be maintained against the following to recover any difference between the amount obtained by sale and the amount of the indebtedness and any interest, costs and expenses: (a) the trustor; (b) a borrower; or (c) a co-borrower. Clarifies that a dwelling is completed after all of the following have occurred: (a) it is used by the owner or occupant of the dwelling; (b) it is available for use after having been completed according to the contract or agreement covering the dwelling, including agreed changes to the contract or agreement; and (c) final inspection is completed, if required by the governmental body that issued the building permit for the dwelling.
A.B. 42
Died pursuant to Art. IV, §10(c) of the Constitution 1/31/14 The Personal Income Tax Law conforms to specified provisions of federal law relating to the exclusion of the discharge of qualified principal residence indebtedness, as defined, from an individual’s income if that debt is discharged after Jan. 1, 2007, and before Jan. 1, 2013, as provided. The federal American Taxpayer Relief Act of 2012 extended the operation of those provisions to debt that is discharged before Jan. 1, 2014. This bill conforms to the federal extension.
A.B. 1036
Died pursuant to Art. IV, §10(c) of the Constitution 1/31/14
Existing law imposes various preconditions for exercising a power of sale under a mortgage or deed of trust, including, among other things, recording a notice of default and a notice of sale. Existing law authorizes a borrower to seek an injunction and damages for violations of certain of the requirements described above, except as specified. Existing law authorizes the greater of treble actual damages or $50,000 in statutory damages if a violation of certain requirements is found to be intentional or reckless or resulted from willful misconduct, as specified. Existing law authorizes the awarding of attorney’s fees for prevailing borrowers, as specified. Existing law provides that a grant of real property that is intended to be voidable on the performance of certain conditions is not voided as to the grantee or other specified persons having actual notice, unless a instrument of defeasance is recorded with the county recorder. Existing law provides that the maxims of jurisprudence set forth in the provisions of the California Civil Code do not qualify that code’s provisions, but are instead intended to aid in their application. This bill makes technical, non-substantive changes to those provisions.
A.B. 1072
Existing law, applicable to residential mortgages, prohibits a person who negotiates, arranges, or otherwise offers to perform a mortgage loan modification or other form of mortgage loan forbearance for a fee or other compensation from, among other things, demanding or receiving any compensation until every service that the person contracted to perform or represented that he or she would perform is accomplished. Existing law makes a violation of these provisions by a natural person a misdemeanor punishable by a specified fine or imprisonment, or both. This bill authorizes a violation of these provisions to be punished as a felony with imprisonment, as specified.
A.B. 1393
Signed by governor 7/21/14, Chapter 152
The Personal Income Tax Law provides for modified conformity to specified provisions of federal income tax law relating to the exclusion of the discharge of qualified principal residence indebtedness, as defined, from an individual’s income if that debt is discharged after Jan. 1, 2007, and before Jan. 1, 2013, as provided. The federal American Taxpayer Relief Act of 2012 extended the operation of those provisions to qualified principal residence indebtedness that is discharged before Jan. 1, 2014. This bill conforms to the federal extension, discharge indebtedness for related penalties and interest, and make legislative findings and declarations regarding the public purpose served by the bill.
A.B. 1730
Signed by governor 9/19/14, Chapter 457
Existing law, applicable to residential mortgages, prohibits a person who negotiates, arranges, or otherwise offers to perform a mortgage loan modification or other form of mortgage loan forbearance for a fee or other compensation from, among other things, demanding or receiving any compensation until every service that the person contracted to perform or represented that he or she would perform is accomplished. Existing law makes a violation of these provisions by a natural person a misdemeanor punishable by a specified fine or imprisonment, or both. This bill requires the assessment of civil penalties for a violation of these provisions and authorizes designated state and local government officials to commence civil actions to recover those penalties. This bill, in addition to the civil penalties described above, authorizes further civil penalties for unlawful mortgage modifications perpetrated against a senior citizen or disabled person, as defined, and provides criteria for the assessment of these additional penalties. The bill authorizes a court to order the offender to pay restitution to the senior citizen or disabled person, as specified. This bill imposes a four-year statute of limitations for actions brought pursuant to these provisions.
A.B. 2317
Signed by governor 7/23/14, Chapter 183
Existing law provides that a sale of property pursuant to specified statutory provisions regarding enforcement of judgments is absolute and may not be set aside for any reason. The judgment debtor may recover from the judgment creditor the proceeds of a sale pursuant to the judgment with interest if the judgment is reversed, vacated, or otherwise set aside. If the sale was improper because of irregularities in the proceedings, because the property sold was not subject to execution, or for any other reason, the judgment debtor, or the judgment debtor's successor in interest, may commence an action within 90 days after the date of sale to set aside the sale if the purchaser at the sale is the judgment creditor. This bill declares that these provisions do not affect, limit, or eliminate a judgment debtor's equitable right of redemption.
A.B. 2358
The Personal Income Tax Law conforms to specified provisions of the federal Mortgage Forgiveness Debt Relief Act of 2007, relating to the exclusion of the discharge of qualified principal residence indebtedness, as defined, from a taxpayer's income if that debt is discharged after Jan. 1, 2007, and before Jan. 1, 2010, as provided. The federal Emergency Economic Stabilization Act of 2008 extended the operation of those provisions to debt that is discharged before Jan. 1, 2013. This bill extends the operation of the exclusion of the discharge of qualified principal residence indebtedness to debt that is discharged on or after Jan. 1, 2013, and before Jan. 1, 2014.
S.B. 339
Passed Senate 5/20/13
The Personal Income Tax Law provides for modified conformity to specified provisions of federal income tax law relating to the exclusion of the discharge of qualified principal residence indebtedness, as defined, from an individual’s income if that debt is discharged after Jan. 1, 2007, and before Jan. 1, 2013, as provided. The federal American Taxpayer Relief Act of 2012 extended the operation of those provisions to qualified principal residence indebtedness that is discharged before Jan. 1, 2014. This bill conforms to the federal extension and makes legislative findings and declarations regarding the public purpose served by the bill. The bill also makes a continuous appropriation from the General Fund to the Franchise Tax Board in those amounts necessary to make payments to taxpayers who have included in income and paid tax on qualified principal residence indebtedness that was discharged on and after Jan. 1, 2013, and before Jan. 1, 2014.
Signed by governor 6/28/14, Chapter 65
(1) Existing law authorizes, until Jan. 1, 2015, the Los Angeles County Recorder, following the adoption of an authorizing resolution by the Los Angeles County Board of Supervisors, to mail a notice of recordation to a party executing a deed, quitclaim deed, or deed of trust within 30 days of the recording of one of those documents, and to mail a notice of default or notice of sale, as specified, to a party subject to a notice of default or notice of sale of property, including the occupants of that property, within five days, but in any event no more than 20 days, of recordation. Existing law requires the county, if the board adopts the authorizing resolution, to submit a report with prescribed information relating to the mailed notices to certain committees of the Legislature on or before Jan. 1, 2014. This bill instead authorizes the recorder to mail a notice of default or notice of sale to a party subject to the notice no more than 14 days, rather than 20 days, after recordation. This bill otherwise extends these authorizations until Jan. 1, 2020. This bill requires additional information to be included in the report and extends the deadline for submitting the report to Jan. 1, 2019. (2) Existing law also authorizes, until Jan. 1, 2015, the Los Angeles County Recorder to collect a fee from the party filing a deed, quitclaim deed, deed of trust, notice of default, or notice of sale, unless that party is a government entity. Existing law authorizes the recorder to use a portion of the collected fee to pay the actual cost of providing information, counseling, and assistance to a person who receives the notice. Existing law authorizes administrative costs incurred by the recorder to be included as a portion of the actual costs that comprise the fee, as specified. Existing law prohibits this fee from exceeding $7. This bill extends these authorizations and the prohibition until Jan. 1, 2020.
Signed by governor 5/9/14, Chapter 156
Current law is silent on when and how fees for court filings, published notices, and other costs of foreclosure are to be calculated and paid and, if overpaid, refunded. The act specifies that all costs and fees charged to a borrower must be accurately accounted for and that any overpayments based on prepayments or estimates must be promptly refunded to the borrower.
Signed by governor 5/9/14, Chapter 157 The act requires a lender (or a loan servicer acting on the lender's behalf) to establish a single point of contact with whom a borrower can communicate about foreclosure matters within 45 days from the date the borrower becomes delinquent in payments. The act also prohibits "dual tracking", in which a lender simultaneously negotiates with the borrower for a loan modification and also pursues foreclosure through the public trustee. Existing notice provisions are expanded to include notice to the borrower that: (i) It is illegal for any person acting as a foreclosure consultant to charge an up-front fee or deposit for services related to the foreclosure; and (ii) If the borrower believes that the servicer has violated the single-point-of-contact or dual-tracking provisions, the borrower may file a complaint with the Colorado attorney general or the federal Consumer Financial Protection Bureau (CFPB), but filing the complaint will not stop the foreclosure process. The public trustee of the county in which a foreclosure is commenced must contact the servicer if the borrower alleges that the servicer has received a completed application for an alternative to foreclosure, or that the borrower and servicer have entered into an agreement to avoid foreclosure and the borrower is complying with the terms of that agreement. If the servicer does not dispute the borrower's statements, the public trustee must postpone the foreclosure sale. The act exempts servicers who service 5,000 or fewer mortgage loans and deems services who comply with or are exempt from relevant CFPB rules addressing single-point-of-contact and dual-tracking issues to be in compliance with the act. The act applies to foreclosure proceedings in which the notice of election and demand is filed on or after Jan. 1, 2015.
Signed by governor 5/9/14, Chapter 158 The act continues the existing foreclosure deferment program, which is scheduled to expire in 2014, until 2015.
H.B. 5353
Signed by governor 6/3/14, Public Act 14-89 Extends the state's foreclosure mediation program by two years, until June 30, 2016, and makes other program-related changes.
H.B. 5483
This bill extends the Judicial Branch's foreclosure mediation program by four years, until July 1, 2018. This extension applies to foreclosure actions with return dates on or after (1) July 1, 2008 for residential real property and (2) Oct. 1, 2011 for religious organizations' real property. (A return date is the date from which filing deadlines are calculated.) The bill also reopens the applicability of transitional rules for determining when mediation terminates in pending cases. Finally, the bill adds the Housing Committee to the required recipients of two reports the Judicial Branch's chief court administrator must submit concerning the foreclosure mediation program. Under current law, only the Banks Committee receives these reports.
H.B. 5514
Signed by governor 6/3/14, Public Act 14-84 By law, in a foreclosure proceeding involving real property, the court may issue a judgment of (1) foreclosure by sale or (2) strict foreclosure. This bill adds another option for certain residential properties, called “foreclosure by market sale,” which is a court-approved sale on the open market upon the mortgagee's (lender's) request and with the mortgagor's (borrower's) consent. The bill limits this option to the first mortgage on a one-to-four family residential property that is the mortgagor's principal residence. The bill establishes industry procedures for the foreclosure by market sale option, including requirements for the foreclosure notice, property appraisal, listing agreement, and purchase and sale contract. On and after Oct. 1, 2014, a mortgagee's foreclosure notice must advise the mortgagor of the market sale option. The bill allows a mortgagee, by filing an affidavit with the court, to proceed with other foreclosure options if certain foreclosure by market sale conditions are not met. The bill also establishes court procedures for the foreclosure by market sale option, including a process that allows subordinate lienholders to preserve their interests in the property. It requires the court to appoint someone to execute the conveyance of the sold property and exempts such a transfer from real estate conveyance tax. The bill specifies that it should not be construed as requiring either the mortgagor or the mortgagee to (1) proceed with discussions after the foreclosure by market sale notice has been sent, (2) reach an agreement regarding a listing agent, or (3) approve any purchase offers received. Lastly, the bill bars a mortgagor who consents to foreclosure by market sale from participating in the state's foreclosure mediation program, but allows him or her to petition the court to participate under certain circumstances.
Failed Favorable Joint deadline 3/20/14 Provides that a mortgagee, as defined in §49-31k of the general statutes, shall notify a consumer reporting agency, as defined in §38a-976 of the general statutes, of the good standing of a mortgagor, as defined in said section, at the request of such mortgagor, if such mortgagor has successfully completed the foreclosure mediation program established pursuant to §49-31m of the general statutes and has remained current on mortgage payments for a period of three or more years following the completion of such program. For purposes of this section, "good standing" means having paid each mortgage payment in a timely fashion, as determined by the mortgagee.
Failed Joint Favorable deadline 4/2/14
Extends the foreclosure mediation program for four years to June 30, 2018.
Revises and provides liability of certain condominium and homeowners' association unit owners acquiring title; defines "previous owner."
Died in committee 5/2/14 Creates the “Short Sale Debt Relief Act”; provides that a debtor does not owe a deficiency to a lienholder related to an eligible real property sold pursuant to a bona fide short sale if an offer is received by the debtor within a specified time period and under specified conditions; requires a lienholder to approve the short sale of property and execute any document necessary to close the sale within a specified time period if a debtor procures a buyer who makes an offer in writing equal to the fair market value of the eligible property.
Died in committee 5/2/14 Creates the "Florida Mortgage Collection Fairness Act”; prohibits a mortgage collection firm from offering false evidence in a residential mortgage foreclosure proceeding; provides that a violation is a deceptive and unfair trade practice; provides penalties and remedies including attorney fees and costs.
S.B. 1462
Died in committee 5/2/14 Defines the term “previous owner”; revises and provides liability of certain condominium owners acquiring title; revises and provides liability of certain homeowners’ association parcel owners acquiring title.
Relates to foreclosure generally, so as to require notice of the withdrawal of foreclosure proceedings; provides for the right of a debtor to remain on foreclosed property until the deed under power has been recorded; provides that a holder of a deed to secure debt after a foreclosure sale is responsible for fees and fines incurred upon the property; requires notice of the completion or cancellation of a foreclosure sale; provides for penalties for failure to comply.
H.B. 917
Relates to foreclosure in general, so as to modify the procedure for confirmation of foreclosure sales; provides for conditions and limitations.
Creates the House Study Committee on Foreclosure Reform.
S.R. 1186
Creates the Senate Study Committee on Foreclosure Reform.
Signed by governor 4/23/14, Act 26
S.B. 2825 Clarifies the definition of a "distressed property consultant" and specifies that attorneys must be licensed by, and engaged in the practice of law in, the state of Hawaii in order to fall within the class of exceptions to the definition of "distressed property consultant."
Expands the application of mandatory mortgage foreclosure dispute resolution by requiring mortgagees, including Hawaiian home lands trust homestead beneficiaries and lawful successors in interest, to participate, at the mortgagor's election, in mediation to avoid foreclosure or mitigate damages from foreclosure prior to filing a judicial foreclosure action for property that has been the mortgagor's primary residence for a specified period. Applies the dispute resolution requirement to judicial foreclosure actions filed prior to the effective date of this bill and pending an initial court hearing.
H.B. 2446
Prohibits deficiency judgment in cases of court-ordered foreclosures.
Signed by governor 4/23/14, Act 37
Establishes a new rule of evidence requiring a bank to submit evidence that a bank document was authenticated by the bank prior to placement in the bank's files, before a court will admit the document into evidence in a foreclosure action. Prohibits evidence that a document was filed with the Bureau of Conveyances from satisfying the authentication requirement pursuant to this rule.
H.B. 4761
Amends the Mortgage Foreclosure Article of the Code of Civil Procedure. Provides that the grantee named in a deed issued in connection with a judicial foreclosure shall cause the deed to be recorded with the county recorder in which the real estate is located within 60 days of delivery of the deed.
H.B. 5667
Amends the Code of Civil Procedure. Provides that a person commits false representation concerning real estate title, a Class 4 felony, when he or she knowingly, as part of any transaction or legal proceeding under the Mortgage Foreclosure Article of the Code, claims an interest in real estate or executes, notarizes, or records a fraudulent real estate document. Provides that a person commits a pattern of making false representations concerning real estate title, a Class 3 felony, by committing false representation concerning title to real estate in two or more instances with a similar pattern or purpose which are not isolated incidents within the preceding four years and in which the aggregate loss or intended loss is more than $250. Provides that the attorney general has a private right of action for civil penalties arising from such conduct. Provides that if a person does not correct the false representation within 20 days of a written request to do so, the owner or holder of the beneficial interest in real estate which is the subject of a false representation concerning real estate title may bring a civil action in the circuit court in the county in which the real estate is located to recover damages suffered by the owner or holder of the beneficial interest plus reasonable attorney's fees.
Passed Senate 4/8/14
Amends the Property Tax Code. Creates the Community Stabilization Assessment Freeze Pilot Program. Provides that any the chief county assessment officer in a county with 3,000,000 or more inhabitants may reduce the assessed value of certain improvements to residential real property for 10 taxable years after the improvements are put in service if certain conditions are met and the residence is located in a census tract where more than 10 percent of the residences have had at least one foreclosure filing since the 2005 calendar year.
Amendatory veto by governor 8/19/14
Amends the Condominium Property Act. Provides that the purchaser of a condominium unit at a judicial foreclosure sale, other than a mortgagee, or a purchaser of a condominium unit from a mortgagee who acquired title through a judicial foreclosure, a consent foreclosure, a common law strict foreclosure, or the delivery of a deed in lieu of foreclosure (instead of the purchaser of a condominium unit at a judicial foreclosure sale, other than a mortgagee, who takes possession of a condominium unit pursuant to a court order or a purchaser who acquires title from a mortgagee) shall have the duty to pay to the association an amount not to exceed the total of the regular monthly assessments for the condominium unit for the nine-month period immediately preceding the relevant event. Provides that the amount due may include any attorney's fees and court costs, but may not exceed nine months of regular assessments due over the same nine-month period. Deletes language providing that the purchaser shall have the duty to pay the proportionate share, if any, of the common expenses for the unit which would have become due in the absence of any assessment acceleration for the six months immediately preceding the institution of an action to enforce the collection of assessments, and which remain unpaid. Deletes language providing that if the outstanding assessments are paid at any time during an action to enforce the collection of assessments, the purchaser shall have no obligation to pay any assessments which accrued before he or she acquired title. Provides that the notice of a foreclosure sale of a condominium unit shall state that a purchaser, other than a mortgagee, shall pay to the association any unpaid monthly assessments for the nine-month period preceding the sale, including attorney's fees and court costs. Provides that each notice of a judicial sale a condominium unit and each disclosure statement issued to a prospective purchaser shall list the required fees. Provides that in certain situations, the board of managers (instead of the owner) of a condominium unit must make specified information available within 14 days of the request (instead of "upon demand") and may do so either electronically or in writing. Defines "regular monthly assessments" as the amount charged by the association as provided for in the current annual budget. Provides that the purchaser of a condominium unit at a judicial foreclosure sale, other than a mortgagee, or a purchaser of a condominium unit from a mortgagee who acquired title through a judicial foreclosure, a consent foreclosure, a common law strict foreclosure, or the delivery of a deed in lieu of foreclosure shall pay to the association an amount not to exceed the total of the regular monthly assessments for the condominium unit for the nine-month period immediately preceding the date of the judicial foreclosure sale, delivery of the deed in lieu of foreclosure, entry of a judgment in a common law strict foreclosure, or the taking of possession pursuant to a court order under the Illinois Mortgage Foreclosure Law (instead of "any of these events"). Provides that the board of managers must make specified information available within 21 days (instead of 14 days) if the association is self-managed, and within 14 days if managed by a community association management firm or a community association manager as those terms are defined in the Community Association Manager Licensing and Disciplinary Act.
S.B. 2730
Signed by governor 8/26/14, Public Act 98-1099
Amends the Mortgage Foreclosure Article of the Code of Civil Procedure. Defines "omitted subordinate interest". Provides that certain persons holding real estate encumbered by an omitted subordinate interest may file a strict foreclosure complaint consisting substantially of certain specified information. Provides that subject to the objection of the defendant, the court shall enter a judgment extinguishing the omitted subordinate interest by vesting absolute title to the mortgaged real estate in the plaintiff. Provides procedures by which a holder of an omitted subordinate interest may redeem the interest. Provides that a person whose omitted subordinate interest was not terminated by a prior foreclosure action does not have a right to file a strict foreclosure action. Specifies that the plaintiff may file a strict foreclosure complaint naming the person who has the omitted subordinate interest as the defendant; provides that subject to the objection of the defendant, the court shall enter a judgment extinguishing the omitted subordinate interest (rather than "extinguishing the omitted subordinate interest by vesting absolute title to the mortgaged real estate in the plaintiff, free and clear of all claims and liens (except liens of the United States of America that cannot be foreclosed without judicial sale))"; deletes language referring to whether good cause for an objection has been shown by the defendant; provides that the amount required to redeem shall not include any costs or fees incurred by the plaintiff in the strict foreclosure case; deletes language providing that upon payment of the redemption amount, title to the defendant shall be free and clear of all claims and liens (except liens of the United States of America that cannot be foreclosed without judicial sale); and corrects typographical errors. Provides that notwithstanding that the person's omitted subordinate interest in the real estate has been terminated, nothing in the new provisions shall be construed to extinguish or impair any claim of a person in the surplus proceeds of a sale after the confirmation of the sale of the real estate for which the person had an omitted subordinate interest.
H.B. 1315
Requires the attorney general to establish and maintain a tax sale blight registry of all persons ineligible to participate in the tax sale. Provides that properties certified as vacant or abandoned may be sold outright at the tax sale. Prohibits foreign business associations who have not registered with the secretary of state from participating in the tax sale. Permits a county to establish a paddle fee for persons who attend the tax sale. Permits a county executive to intervene in a mortgage foreclosure action and request a court to extinguish a creditor's lien on a vacant or abandoned property if the creditor unduly delays prosecuting the foreclosure action and certain other conditions are met.
Signed by governor 3/24/14, Public Law 66
Requires the attorney general to establish and maintain a tax sale blight registry of all persons ineligible to participate in the tax sale. Provides that properties certified as vacant or abandoned may be sold outright at the tax sale. Reduces the interest rate for payments in excess of a minimum bid from 10 percent to five percent. Lowers the interest rate for refunds on certain tax sales from six percent to five percent. Provides that the notice to a record owner of property must occur six months, instead of nine months, after the date of the tax sale. Requires the executive of a county, city, or town to obtain a judgment that a parcel of real property is vacant or abandoned before a certification can be made to the county auditor for tax sales purposes. Reduces the period from six to three months when a tax sale purchaser may petition the court for a judgment directing the county auditor to issue a tax deed if the real property is not redeemed from the sale. Specifies that a property tax penalty for property sold by a county executive through a certificate of sale procedure is to be removed from the tax duplicate if the penalty is associated with a delinquency that was not due until after the date of the original tax sale but is due before the issuance of the certificate of sale by the county executive. Requires, for tax deeds executed for real property sold at a tax sale, that the county auditor submit the tax deed directly to the county recorder for recording and charge the tax sale purchaser the appropriate recording fee. Permits the county auditor to be the only signer of a sales disclosure form. Adds the term "blighted" in determining whether a building is an unsafe building. Requires a business entity that seeks to register to bid at a tax sale to provide a certificate from the secretary of state to the county treasurer. Prohibits foreign business associations that have not registered with the secretary of state from participating in the tax sale. Requires persons who purchase a property or certificate at a tax sale to reimburse the county for the costs of a title search. Permits a county to establish a paddle fee for persons who attend the tax sale. Requires the sheriff to notify the owner of a foreclosed property being sold at auction if the sale is canceled.
Requires parishes to establish and maintain a registry of foreclosed properties.
Relates to executory process and deficiency judgments; provides relative to short sales; provides for a waiver of deficiency judgment; provides for terms, definitions, procedures and conditions; provides relative to eligibility for participation; provides relative to disclosure.
L.D. 1389
Signed by governor 4/5/14, Public Law 521
Provides an expedited foreclosure process; relates to transfer of tax on deeds of foreclosure or in lieu of foreclosure, assignment of rights in connection with foreclosed real property, transfer of mortgage deeds of foreclosure, orders of abandonment for residential properties in judicial foreclosure, civil actions, public sales, tax-acquired property, restriction of title action, tax liens, debt collection, repossession companies, residential real estate property preservation providers and mediation.
Signed by governor 5/15/14, Chapter 592
Vetoed by governor –duplicative 5/15/14 Authorizes a secured party or any other party in interest to file a motion for a deficiency judgment under specified circumstances; requires a specified motion for deficiency judgment to be filed within three years after the final ratification of the auditor's report.
Signed by governor 4/14/14, Chapter 233 Provides that no person may require, as a condition of a sale or transfer of owner-occupied residential property to a certified community development financial institution, any affidavit, statement, agreement, or addendum that limits ownership or occupancy of the property by the immediately preceding mortgagor or grantor under specified circumstances; exempts a certified community development financial institution from specified homeowners in foreclosure protection laws; and makes the Act an emergency measure.
Signed by governor 5/15/14, Chapter 602
Alters the types of damages, including any interest and reasonable costs and attorney's fees directly related to specified efforts to collect delinquent periodic or special assessments, for which the governing body of a condominium or homeowners association may foreclose on a lien for delinquent assessments against a unit owner or lot owner; and applies the Act prospectively.
Withdrawn from consideration 3/13/14
S.B. 222 Establishes the Commission to Investigate the Treatment of Lender-Owned Properties; providing for the composition, cochairs, and staffing of the Commission; prohibits a member of the Commission from receiving specified compensation, but authorizes the reimbursement of specified expenses; requires the Commission to study and make recommendations regarding specified matters; requires the Commission to report its findings and recommendations to the governor and the General Assembly on or before a specified date.
Passed House 4/7/14 Requires the Department of Housing and Community Development and the commissioner of Financial Regulation to conduct specified analyses based on the available data of specified foreclosure trends for residential real property in Prince George's County; requires the Department and the commissioner to report the Department's and the commissioner's findings to specified committees and specified delegations of the General Assembly on or before Dec. 31, 2014.
Defines the term "secured party" for purposes of provisions of law governing actions to foreclose specified mortgages and deeds of trust; and prohibits a lender who forecloses on a specified mortgage or deed of trust from filing a motion for a deficiency judgment if specified proceeds are insufficient to satisfy the debt and accrued interest.
Prohibits a lender from maintaining an action to foreclose a mortgage or deed of trust on residential property in the state for six months; establishes a specified penalty for a person who files an affidavit relating to a foreclosure notice when the person knows or has reason to know that the contents of the notice are inaccurate; requires a court to send a specified checklist to the mortgagor or grantor of owner-occupied residential property when a specified foreclosure is filed.
H.B. 1346
Signed by governor 5/15/14, Chapter 561
Prohibits the state or any of its instrumentalities or political subdivisions from acquiring mortgages or deeds of trust by condemnation.
Requires a secured party to petition the circuit court for leave to immediately commence an action to foreclose a mortgage or deed of trust on real property no later than 30 days after the foreclosure stay has been lifted in a bankruptcy proceeding, under specified circumstances; requires an order to docket or a complaint to foreclose to be filed and to be served on a mortgagor or grantor no later than 30 days after the circuit court grants a specified petition.
Establishes a foreclosure mediation program within the Office of Public Collaboration at the University of Massachusetts at Boston to offer alternative to foreclosures.
Massachusetts H.B. 1126 Establishes an apprentice training program for the rehabilitation of foreclosed properties within the Department of Housing and Community Development.
Massachusetts H.B. 1161
Relates to foreclosures in the historic districts of Massachusetts.
Massachusetts H.B. 1516 Provides for an investigation by a special commission on the viability of a foreclosure mediation program and the establishment and implementation of said program.
Massachusetts H.B. 1596
Relates to occupants remaining in residences after the sale of foreclosed properties.
Massachusetts H.B. 1617
Massachusetts H.B. 3394
Massachusetts H.B. 3507
For further action see H.B. 3969 3/17/14
Relates to reviving and continuing the special task force (including members of the General Court) established (under §4 of Chapter 194 of the Acts of 2012) to study ways in which the commonwealth can encourage the prevention of unnecessary vacancies following foreclosures.
H.B. 3969
Signed by governor 4/23/14, Chapter 85
Revises and continues the task force on the prevention of unlawful and unnecessary vacancies following foreclosures.
Massachusetts S.B. 425
Relates to alternatives to foreclosure through a mediation program.
Massachusetts S.B. 456
Relates to the foreclosure of residential property.
Massachusetts S.B. 490
Relates to foreclosed property.
Massachusetts S.B. 491 Provides that notwithstanding any general or special law or rule or regulation to the contrary, a creditor shall place residential properties back on the market for sale or lease within one calendar year of foreclosure. Failure to place such residential properties back on the market for sale or lease within one calendar year of foreclosure shall result in forfeiture of property to the town or city in which the residential property is located.
Massachusetts S.B. 492
Massachusetts S.B. 728
Massachusetts S.B. 753
Massachusetts S.B. 1323 Provides that income attributable to the discharge of debt on a principal residence including debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, shall qualify for tax relief provided that no more than $1 million of forgiven debt is eligible for this exclusion, except if married filing jointly, up to $2 million may be excluded. The exclusion shall not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.
Massachusetts S.B. 1368
See S.B. 1987 1/23/14
Clears titles to foreclosed properties.
S.B. 1987
To Senate for concurrence 7/23/14
H.B. 5277
Signed by governor 5/20/14, Public Act 125 The bill amends Chapter 32 of the Revised Judicature Act (which provides for foreclosure of mortgages by advertisement). Requires a purchaser of foreclosed property to issue notice before conducting an interior inspection of the property during the redemption period. Specifies that a purchaser could conduct any number of exterior inspections of the property during the redemption period. Allows a purchaser to request information on the condition of the interior of any structures on the property; and allows the purchaser to schedule an interior inspection of structures if the mortgagor refused to provide information. Requires a mortgagor to inform the purchaser of the mortgagor's intent to vacate the foreclosed property after the foreclosure sale. Requires the purchaser to notify the mortgagor that the purchaser intended to commence summary proceedings if damage to, or a condition on, the property were not repaired or corrected in seven days. Prohibits a purchaser from commencing summary proceedings if the damage or condition were repaired, or the mortgagor and purchaser agreed on a procedure and timeline to repair the damage or condition. Specifies factors that the court would have to consider in granting a judgment of possession in favor of a purchaser. Creates a rebuttable presumption that a mortgagor would be liable to the purchaser for damage to the property if the mortgagor failed to submit requested information or consent to requested inspections. Creates a rebuttable presumption that a mortgagor would not be liable to the purchaser for damage to the property if mortgagor consented to requested inspections and submitted requested information. The bill also deletes provisions and repeals sections related to a loan modification program for residential property, under sections that were previously repealed.
H.B. 5794
Signed by governor 12/29/14, Public Act 431
The bill amends Chapter 32 of the Revised Judicature Act, which pertains to foreclosure of a mortgage by advertisement, to refer to a "purchaser", rather than "mortgagor", in provisions concerning property inspection. The Act allows a purchaser to inspect property after a foreclosure sale under Chapter 32. After the initial inspection, the purchaser may request the mortgagor to provide information on or evidence of the condition of the interior of any structure on the property. If the mortgagor refuses to do so within five days of receiving the request, the Act allows the mortgagor to schedule an inspection of the interior of any structure on the property. The bill instead allows the purchaser to schedule an inspection. The bill also replaces references to "executor" and "administrator" with "personal representative".
H.B. 5795
Signed by governor 12/29/14, Public Act 432
The bill amends Chapter 31 of the Revised Judicature Act, which governs actions to foreclosure mortgages and land contracts, to require certain people to have a recorded interest in property in order to redeem it after a foreclosure sale. The Act specifies that the mortgagor, the mortgagor's heirs, executors, or administrators, or any person lawfully claiming from or under the mortgagor, his or her heirs, executors, or administrators, may redeem the premises sold at a foreclosure sale by paying the bid amount with interest to the purchaser or the register of deeds. Under the bill, a person claiming from or under the mortgagor or the other parties would have to have a recorded interest in the property. The bill also replaces references to "executors" and "administrators" with "personal representative".
Signed by governor 1/10/15, Public Act 501
Prohibits bids on forecloses properties from certain individuals under certain circumstances and require registration.
Passed Senate 6/11/13 Originally, the loan modification program was scheduled to be repealed on Jan. 5, 2012, and the sunset date later was delayed to June 30, 2013. The bill delays the sunset on the program until June 30, 2014.
Passed Senate 6/11/13
The bill adds §3206 to mandate that, for a proceeding in which the first notice was published after Jan. 9, 2014, a mortgage servicer comply with 12 CFR 1024.39 to 1024.41 with respect to the mortgage. The bill states that this would apply to small servicers even as to the provisions of the Federal regulations that do not apply to small servicers.
The bill amends the Income Tax Act to allow a taxpayer to deduct income derived from the cancellation of debt related to the sale or foreclosure of the taxpayer's homestead, for the purpose of computing taxable income.
H.F. 1941
S.F. 2779
Establishes mortgage foreclosure mediation; appropriates money.
H.F. 1957
S.F. 2095
Relates to taxation; individual income; conforms to the federal exclusion of discharge of qualified principal residence indebtedness.
H.F. 2213
Signed by governor 5/1/14, Chapter 191
S.F. 2445
Indefinitely postponed 4/24/14
Relates to mortgage foreclosures; amends the definition of a small servicer; clarifies the Foreclosure Curative Act.
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 act.
H.B. 497
Establishes the Homeowner's Emergency Mortgage Assistance program, which shall be administered by the Mississippi Home Corporation; authorizes the corporation to make loans to Mississippi residents who are eligible under the act; provides that before a mortgagee may accelerate the maturity of a mortgage obligation covered under the act or begin any mortgage foreclosure, certain notice must be given to the mortgagor and a determination must have been made on the mortgagor's application for emergency mortgage assistance payments; provides that foreclosure actions on mortgages covered under the act shall be temporarily stayed; specifies the requirements for giving notice to the mortgagor; specifies the requirements for eligibility for assistance with respect to a mortgage under the act; provides that the corporation shall pay to a mortgagee the full amount due under the terms of a mortgage of a mortgagor who is eligible for assistance under the act; provides that the corporation shall enter into agreements with mortgagors who receive assistance under the act for the repayment of that assistance; requires all mortgagors who receive assistance under the act to receive consumer credit counseling; creates the Homeowner's Emergency Mortgage Assistance Fund in the state treasury.
H.B. 792
Creates the Mississippi Residential Mortgage Foreclosure Mediation program, which will provide for mediation between the borrowers and lenders before foreclosure actions on homestead property are begun; provides the procedures to be followed in the program.
H.B. 1169
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 26 89-1-57 to conform to the provisions of this act.
S.B. 2816
Missouri H.B. 1757 Changes the laws regarding certain mortgage disclosures; requires any lender making a reverse mortgage loan to allow for the repayment of the loan after the death of the person who entered into the loan.
Missouri H.B. 1912 This bill provides that current law shall not preempt Kansas City from adopting ordinances on vacant properties or any parcel of property in the process of mortgage foreclosure, requiring them to be registered and for 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.
Missouri H.B. 2282 This bill repeals the provisions regarding nonjudicial foreclosure proceedings and requires, beginning Aug. 28, 2014, all foreclosure proceedings to be handled judicially as specified in §§443.190 to 443.280, RSMo.
Missouri S.B. 676 This act changes the notice requirement that a new owner must give to a tenant following a foreclosure sale from 10 business days to vacate the premises to 90 days.
Nebraska L.B. 915 Provides for a person designated to accept city or village notices in cases of mortgaged property or trust deed default.
Nebraska L.B. 1049 Changes provisions for actions for recovery of title or possession of real estate or foreclosure of mortgages or deeds of trust as mortgages.
Signed by governor 7/11/14, Chapter 198 This bill establishes a commission to study New Hampshire mortgage foreclosure law, new federal regulations, and fair foreclosure practices.
New Hampshire S.B. 341
This bill establishes a separate, abbreviated eviction process for foreclosed properties.
Signed by governor 5/15/14, Chapter 5
Substituted 3/27/14
Allows municipalities to require mortgage lenders to maintain vacant residential properties during foreclosure; provides that if the creditor fails to remedy the violation within a specified time period, the municipality may impose penalties allowed for the violation of municipal ordinances.
Vetoed by governor 9/11/14
Substituted 6/23/14
Allows municipalities to designate redevelopment entities and certain non-profits to act as land bank entities.
New Jersey A.B. 479 Extends moratorium on the imposition of Statewide non-residential development fees until 2018; establishes the “New Jersey Residential Foreclosure Transformation Act.”
A.B. 1231
Requires mortgage lenders to maintain vacant, age-restricted dwelling units during foreclosure.
A.B. 1257
Passed both houses 6/30/14
Provides the governing body of any municipality may adopt ordinances to regulate the care, maintenance, security and upkeep of the exterior of vacant and abandoned residential properties; provides that the creditor filing a summons and complaint in an action to foreclose shall be responsible for the care, maintenance, security, and upkeep of the abandoned residential property; provides a fine for violation of any property maintenance or public nuisance code; includes out of state creditors.
Passed Senate 6/26/14
Creates Foreclosure Prevention and Neighborhood Stabilization Revolving Trust Fund; places temporary surcharge on mortgage foreclosure complaints.
New Jersey A.B. 2599
Requires registration of certain vacant and abandoned properties with municipalities and permits municipalities to require protective measures be taken for such properties.
Passed by Assembly 12/18/14
A.B. 3788
Requires owner of foreclosed property to provide relocation assistance to tenant displaced by termination of illegal occupancy.
Passed Senate 6/23/14
A.C.R. 40
Memorializes Congress and the President to authorize and encourage lenders to permit homeowners to remain in their homes as renters during and after foreclosure.
A.R. 172
Creates Assembly Task Force on Residential Mortgage Foreclosure Amelioration.
New Jersey S.B. 296 Codifies the Judiciary's Foreclosure Mediation Program; dedicates monies from foreclosure filing fees and fines.
New Jersey S.B. 959 Requires registration of certain vacant and abandoned properties with municipalities and provides enforcement tools related to maintenance of these properties.
New Jersey S.B. 1435 Provides foreclosure forbearance for certain residential borrowers and exempts certain lenders that offer sustainable mortgage modifications.
Passed Senate 6/30/14
H.M. 15
Adopted 2/15/14
Requests the United South Broadway Corporation, a nonprofit community development corporation that provides housing counseling and foreclosure legal defense statewide, to convene a task force to study the foreclosure process in New Mexico and make recommendations that will protect neighborhood and community stability, prevent unnecessary and improper foreclosures and preserve the due process rights of financially strapped families.
S.M. 11
Adopted 2/16/14
Enacting clause stricken 10/22/14
Provides that only the owner and holder of a mortgage and note, or its agent, shall have standing to commence a mortgage foreclosure action; lack of standing shall be defense that may be raised at any time prior to the judgment of foreclosure and sale; requires the plaintiff in a foreclosure action to affirm that the plaintiff is the holder and owner, or its designed agent, of the subject mortgage and note; provides that the summons and complaint shall include a copy of the original mortgage and note, and all endorsements, assignments and transfers thereof, and any delegations of authority by the owner and holder of the mortgage and note.
A.B. 1582
Signed by governor 9/23/14, Chapter 356
S.B. 3479
Prevents referees from being held liable for interest or penalties on transfer taxes to be paid on deeds filed in their capacity as referee pursuant to a judgment of foreclosure and sale.
A.B. 2779
S.B. 1478
A.B. 3553
S.B. 6279
A.B. 7154
Passed Senate 3/3/14
A.B. 7395
S.B. 5251
Enacts the “Foreclosure Fraud Prevention Act of 2013;” creates the crimes of residential mortgage foreclosure fraud in the first and second degrees.
S.B. 5719
A.B. 7903
S.B. 5154
A.B. 7953
Directs county clerks to submit to the office of court administration, on a quarterly basis, an itemized report on the surplus moneys for the sales of foreclosed properties; requires referees to submit report of sale to the county clerk, the former owner of the real property, and the attorney or representative of the former owner.
A.B. 9341
S.B. 7350
Establishes the "Abandoned Property Neighborhood Relief Act of 2014"; relates to the duty of the mortgagee or its loan servicing agent to maintain property secured by a delinquent mortgage.
A.B. 9354
Signed by governor 6/19/14, Chapter 29
S.B. 7119
Substituted 6/10/14
Extends expiration of provisions of civil practice law and rules requiring settlement conferences in residential foreclosure actions; extends expiration of provisions of the real property actions and proceedings law requiring notice of foreclosure to be sent the borrower; extends until 2019 the provisions conferring certain powers on New York city marshals; extends the chief administrator of the courts' authority to allow referees to determine certain applications to a family court for an order of protection; extends for three more years, the judicial hearing officer pilot program in the family courts of the seventh and eighth judicial districts for ordering a reference to determine an application for an order of protection or temporary order of protection in certain cases.
New York A.B. 9911 Provides that the defense, in a mortgage foreclosure action, of the plaintiff's lack of standing is not waived because of the defendant's failure to raise such defense in his or her responsive pleading.
New York S.B. 526 Establishes the rural homeowners assistance program for assisting first time, low or moderate income, or minority homeowners from foreclosure by authorizing and directing the commissioner of state division of housing and community renewal to enter into contracts with neighborhood preservation companies to provide such assistance to residents in certain rural communities; appropriates $1 million for such purposes.
New York S.B. 2969
New York S.B. 3491 Relates to residential mortgage foreclosure fraud prevention; creates the crimes of residential mortgage foreclosure fraud in the first and second degrees.
New York S.B. 3534
Relates to a plaintiff in a mortgage foreclosure action obtaining a judgment of foreclosure and sale in good faith.
New York S.B. 3838 Relates to permitting foreclosure of real property improved by a non-residential building or certain multi-family buildings by the power of sale; establishes an effective non-judicial proceeding for uncontested commercial mortgage foreclosure.
New York S.B. 5292
New York S.B. 5562 Provides for the appointment of foreclosure receivers and managing agents in cities having a population of one million or more.
New York S.B. 7032 Relates to prohibiting mortgagors from recovering attorney's fees and/or expenses incurred during a foreclosure.
New York S.B. 7035
H.B. 223
Passed House 4/2/14
Amends §§1901.18, 1901.185, 2329.01, 2329.02, 2329.20, 2329.33, 2329.52, and 2909.05 and enacts §§2308.01 to 2308.05 and 3767.51 to 3767.56 of the Revised Code to expedite the foreclosure and transfer of unoccupied, blighted parcels and certain abandoned properties and to make other changes relative to residential foreclosure actions.
H.B .613
Amends §§2329.01, 2329.17, 2329.20, 2329.26, 2329.27, and 2329.33 and to enact sections 2330.01, 2330.02, 2330.03, 2330.04, 2330.041, 2330.05, 2330.06, 2330.07, 2330.08, 2330.09, 2330.10, 2330.11, and 2330.12 of the Revised Code to establish the Private Foreclosure Fast-Track Law.
Signed by governor 3/6/14, Chapter 36
Requires notices of trustee’s sale of residential homes to include statement on possibility of methamphetamine manufacturing at home.
Signed by governor 3/14/14, Act 20
Amends Title 42 (Judiciary and Judicial Procedure) of the Pennsylvania Consolidated Statutes; further provides for six months limitation and for deficiency judgments; relates to a petition for the establishment of a deficiency judgment following execution and delivery of a sheriff's deed for property sold in connection with an execution proceeding. relates to a petition for determination of fair market value; relates to foreclosure, lien, municipal claim and a tax lien or charge on the land.
Puerto Rico H.B. 217
Puerto Rico H.B. 909
Puerto Rico H.B. 1414
Puerto Rico H.B. 2037
Pocket vetoed by governor 12/24/14
Adopted 10/9/14
Directs the House Committee on Consumer Affairs and Anti Antitrust to research the implementation of Law 184 of 2012 which was titled Compulsory Mediation and Preservation of the Home and Mortgage Foreclosure Process of Principal Housing.
H.R. 1030
Adopted 10/30/14
Directs the House Committee on Consumer Affairs and Anti Antitrust to conduct an investigation into the alleged practice of some financial institutions require in respect of its properties foreclosed, the deposit option purchase is deposited into an account of the institution and then retained when the consumer or property subject does not qualify for financing.
H.R. 1041
Adopted 9/18/14
Orders the House Committees on Consumer Affairs and Anti Monopolistic Practices and Housing and Urban Development to conduct research on insurance requirements, bonds, guarantees and other remedies available to the Puerto Rican regarding the consumer contracting industry with respect to prepayment of pre foreclosures that are designed in order to identify possible amendments or changes to the existing legal framework to provide adequate protection in the event of default.
H.B. 7227
Signed by governor 7/1/14, Chapter 272
This act permits publication of foreclosure notices for properties in the counties of Bristol, Kent and Washington in newspapers published or distributed in those counties respectively.
H.B. 7449
Signed by governor 7/8/14, Chapter 513
S.B. 2659
Signed by governor 7/8/14, Chapter 486
This act creates a new process for the eviction of residential tenants in mortgage foreclosed property which requires the existence of just cause.
Rhode Island H.B. 7504
Rhode Island H.B. 7613
This bill requires mortgagees, upon filing notice of intent to foreclose against a mortgagor, to file a copy of that notice with the city or town municipal clerk, and appoint an agent for service of process within the state. Further, the bill requires a mortgagee who initiates a foreclosure proceeding against a residential property located in the municipality to maintain the property in accordance with state and local housing codes if the property becomes vacant during the foreclosure proceeding.
H.B. 8293
Signed by governor 7/8/14, Chapter 543
This act requires a mortgagee to participate in good faith in a mediation conference prior to initiating foreclosure proceedings. This act applies only to individual consumer mortgages on any owner-occupied, one to four unit residential property which is the primary residence of the mortgagor.
Rhode Island S.B. 2637
Rhode Island S.B. 3072
This bill requires a mortgagee to participate in good faith in a mediation conference prior to initiating foreclosure proceedings. This bill applies only to individual consumer mortgages on any owner-occupied, one to four unit residential property which is the primary residence of the mortgagor.
South Carolina H.B. 4534
Adds §29-3-635 so as to provide no cause of action for foreclosure of a real estate mortgage may be commenced if the alleged default was based solely on a failure to purchase or maintain flood insurance covering the mortgaged property; provides no cause of action exists for foreclosing a real estate mortgage when the alleged default was based solely on a failure to purchase or maintain flood insurance covering the mortgaged property; provides remaining provisions in a mortgage remain in full force and effect despite a failure to purchase or maintain flood insurance covering the mortgaged property; and provides compliance with these provisions does not constitute a waiver of any other rights or terms of a mortgage and does not estop a mortgagor or mortgagee from asserting those other rights.
H.B. 4670
Passed House 3/27/14
Adds §29-3-625 so as to provide a process for expediting mortgage foreclosures and defines necessary terminology.
Signed by governor 6/2/14, Act 218
Signed by governor 5/13/14, Public Chapter 912
S.B. 2399
Changes the fee that court clerks may charge for selling real or personal property under decree of court, and receiving, collecting, and paying out the proceeds; specifies that special commissioners who are appointed by a court to sell property will not be permitted to take a commission in excess of the amount of the fee that court clerks may charge for selling real or personal property under decree of court, and receiving, collecting, and paying out the proceeds; requires that judicial trust sales not occur on Sundays or state or federal legal holidays.
Texas No regular 2014 session
Signed by governor 3/31/14, Chapter 247
This bill removes two sunset reauthorization dates related to unlawful detainer of tenants and notice to tenants on residential property to be foreclosed.
Signed by governor 3/31/14, Chapter 266
This bill defines terms; amends the qualifications and obligations of a single point of contact; limits the requirements described in this bill to a beneficiary that is also a financial institution; clarifies the requirements of the written notice that a beneficiary or servicer must give to a default trustor; clarifies the relationship between federal law and §57-1-24.3; provides that, under certain circumstances, failure to comply with a requirement of §57-1-24.3 does not affect the validity of a trustee's sale to a beneficiary; and makes technical and conforming changes.
This bill defines terms; and requires the beneficiary of a trust deed that is secured by real property that is subject to an association of unit owners under Title 57, Chapter 8, Condominium Ownership Act, or an association under Title 57, Chapter 8a, Community Association Act, to pay the unit's share of certain common costs to the association beginning 150 days after the trustee records a notice of default.
Requires the Department of Commerce to develop and maintain an internet web site to serve as a statewide portal for the public to find and access notices of trustees' sales. Requires a notice of trustee's sale to be posted on the web site by the trustee.
Washington H.B. 2658
Prescribes penalties for false declarations by a beneficiary regarding a trustee's sale.
Washington H.B. 2659
Modifies provisions relating to the restraint of a sale by a trustee.
H.B. 2723
Signed by governor 3/31/14, Chapter 164
S.B. 6507
Indefinitely postponed 2/25/14
Amends the Foreclosure Fairness Act to provide that the location of the pre-foreclosure meeting and mediation is the county in which the property is located; requires registered or certified mail, return receipt requested, for notices of pre-foreclosure options; modifies the foreclosure loss mitigation form; defines, for purposes of mitigation, owner-occupied residential real property; authorizes mediator fees; relates to beneficiary modification prohibition.
S.B. 6553
Signed by governor 3/27/14, Chapter 107
Provides that in a judicial foreclosure, after confirmation of the sale and the judgment is satisfied, if there are any proceeds, the clerk must pay such proceeds to all interests in, or liens against, the property eliminated by the sale in the order of priority that the interest, lien, or claim attached to the property. Any remaining proceeds must be paid to the judgment debtor. Anyone seeking disbursement of surplus funds must file a motion requesting disbursement in the superior court for the county in which the surplus funds are deposited. Notice of the motion must be served upon or mailed to all persons who had an interest in the property at the time of the sale, not less than 20 days prior to the hearing of the motion. The clerk may only disburse any surplus by order of the superior court of that county. It is further clarified that the court, not the clerk, determines the order a priority attaches to any surplus funds. Rather than being paid first to the judgment debtor, excess sale proceeds realized in a sale of property under execution must be paid first to junior interest holders in the order of priority that the interest, lien, or claim attached to the property, as determined by the court. Only after these junior interests are paid, are the remaining proceeds paid to the judgment debtor.
A.B. 622
This bill requires the plaintiff in a mortgage foreclosure action to post a surety bond with the clerk of circuit court when the action is commenced. The bond is to guarantee reimbursement by the plaintiff to the municipality in which the property in foreclosure is located for up to $15,000 in costs incurred by the municipality if the municipality razes a building on the property during the foreclosure action. The clerk is required to return the bond to the plaintiff if a building on the property is not razed before the first of any of the following occurs: 1) the foreclosure action is dismissed; 2) the mortgagor redeems the property (pays the amount owed); or 3) the court confirms the sale of the property at the end of the foreclosure action. The bill prohibits any of the costs incurred by the plaintiff from being recovered from the mortgagor or from being included in the amount of the judgment, in the amount of any deficiency, in the amount that the mortgagor must pay to redeem the property, or in the costs of the foreclosure action.
A.B. 623
This bill requires the board of each county (board) to establish a program for installing lighting on certain eligible properties located in the county. A property is eligible to have lighting installed if 1) the property is the subject of a foreclosure action or the county holds a tax certificate with respect to the property for delinquent property taxes; 2) the property has one or more buildings or other improvements; and 3) the board determines that the property is abandoned or blighted. The board must develop criteria, which take into consideration all of the circumstances of the property, for determining whether lighting should be installed on an eligible property. The board must contract with an electrician or electrical contractor to install the lighting on the exterior of any buildings or other improvements on an eligible property. The lighting must be powered by solar energy and just sufficient for securing the improvements on the property. The bill provides the contractor with immunity from civil and criminal liability for acts or omissions related to installing the lighting under the contract. The board may delegate any of its responsibilities under the program to any committee created by the board or any county employee, agency, or department. Funding for the program comes from a $50 fee that is paid by the plaintiff in each foreclosure action that is commenced in the county. The fee is in addition to the usual fee for commencing a foreclosure action, which under current law is $75.
If a mortgagor (person who takes out a mortgage loan to, for example, buy property) defaults in the repayment of the loan, the mortgagee (person or entity that made the loan, such as a bank) may commence a mortgage foreclosure action, the procedure for which is provided in current law. If the mortgagor owes the money, the court will enter judgment for the mortgagee, who is the plaintiff in the action. Before the property may be sold at sheriff’s sale, a specified period of time, known as the redemption period, must elapse during which the mortgagor may pay the amount owed on the loan. If the amount is not paid by the end of the redemption period, the property will be sold at sheriff ’s sale and the amount realized on the sale of the property will be paid against the amount owed on the loan. The length of the redemption period, which is usually three months, six months, or a year, depends on the type of property and whether the mortgagee is seeking a deficiency judgment for any amount of the default on the loan that is not realized on the sale of the property. If the court determines that the property has been abandoned, the redemption period is only five weeks long. Under this bill, after a mortgage foreclosure action is commenced, an employee or agent of, or contractor with, the city, village, or town (municipality) in which the property in foreclosure is located, or a utility company providing water, electric, or natural gas service to the property, may go on the property, enter into any buildings on the property, using such reasonable force as is necessary, and take any action necessary to preserve or protect the property or public health and safety. This may be done, however, only if the municipality has determined that it is likely that the property is abandoned, using any reasonable criteria, including the criteria that a court uses in a foreclosure action to determine that property has been abandoned, and that it is necessary to preserve or protect the property or public health and safety or to inspect the property to determine if any action is necessary to preserve or protect the property or the public health and safety. The bill also provides that, in a mortgage foreclosure action in which the court has determined that the property has been abandoned, after judgment is entered for the plaintiff in the action, the plaintiff may go on the property and enter into any buildings on the property, using such reasonable force as is necessary, to inspect the property and take any action necessary to preserve or protect the property. The bill provides immunity from civil and criminal liability to any employee or agent of, or contractor with, a municipality in which a property in foreclosure is located or utility company that provides service to the property, and to a plaintiff in a foreclosure action, for acts or omissions related to going on, and inspecting, the property and taking any actions authorized under the bill. The bill requires the clerk of circuit court for the county in which a mortgage foreclosure action is commenced to provide notice of the commencement of the action to the municipality in which the property in foreclosure is located and to the law enforcement agency that provides primary law enforcement services to that municipality. The notice must include the address of the property and the name and address of the plaintiff in the foreclosure action, but may not include the name of the property owner or defendant in the foreclosure action.
S.B. 487
If a mortgagor (person who takes out a mortgage loan to, for example, buy property) defaults in the repayment of the loan, the mortgagee (person or entity that made the loan, such as a bank) may commence a mortgage foreclosure action, the procedure for which is provided in current law. If the mortgagor owes the money, the court will enter judgment for the mortgagee, who is the plaintiff in the action. Before the property may be sold at sheriff’s sale, a specified period of time, known as the redemption period, must elapse during which the mortgagor may pay the amount owed on the loan. If the amount is not paid by the end of the redemption period, the property will be sold at sheriff’s sale and the amount realized on the sale of the property will be paid against the amount owed on the loan. The length of the redemption period, which is usually three months, six months, or a year, depends on the type of property and whether the mortgagee is seeking a deficiency judgment for any amount of the default on the loan that is not realized on the sale of the property. If the court determines that the property has been abandoned, the redemption period is only five weeks long. Under this bill, after a mortgage foreclosure action is commenced, an employee or agent of, or contractor with, the city, village, or town (municipality) in which the property in foreclosure is located, or a utility company providing water, electric, or natural gas service to the property, may go on the property, enter into any buildings on the property, using such reasonable force as is necessary, and take any action necessary to preserve or protect the property or public health and safety. This may be done, however, only if the municipality has determined that it is likely that the property is abandoned, using any reasonable criteria, including the criteria that a court uses in a foreclosure action to determine that property has been abandoned, and that it is necessary to preserve or protect the property or public health and safety or to inspect the property to determine if any action is necessary to preserve or protect the property or the public health and safety. The bill also provides that, in a mortgage foreclosure action in which the court has determined that the property has been abandoned, after judgment is entered for the plaintiff in the action, the plaintiff may go on the property and enter into any buildings on the property, using such reasonable force as is necessary, to inspect the property and take any action necessary to preserve or protect the property. The bill provides immunity from civil and criminal liability to any employee or agent of, or contractor with, a municipality in which a property in foreclosure is located or utility company that provides service to the property, and to a plaintiff in a foreclosure action, for acts or omissions related to going on, and inspecting, the property and taking any actions authorized under the bill. The bill requires the clerk of circuit court for the county in which a mortgage foreclosure action is commenced to provide notice of the commencement of the action to the municipality in which the property in foreclosure is located and to the law enforcement agency that provides primary law enforcement services to that municipality. The notice must include the address of the property and the name and address of the plaintiff in the foreclosure action, but may not include the name of the property owner or defendant in the foreclosure action.
The statutes specify a procedure for municipalities (cities, villages, and towns) to follow for the razing of old, dilapidated, or out−of−repair buildings. The municipality may order the owner of such a building to repair it, if the building can be made safe by reasonable repairs, or to raze it. If the cost of repair would exceed a specified percentage in relation to the assessed value of the building, repairs are presumed unreasonable. The order is served on the owner like a summons and specifies a time within which the repairing or razing must be done. If the owner does not comply with the order, the municipality may commence a legal action for a court order requiring the owner to raze the building or may proceed to raze the building through a public agency or by contract with a private party. The cost of razing the building may be charged against the real estate on which the building was located and, if so, becomes a lien on the real estate and may be assessed and collected as a special charge. A first class city (Milwaukee) may enact ordinances with alternative or additional provisions governing razing buildings. This bill requires the plaintiff in a mortgage foreclosure action to post a surety bond with the clerk of circuit court when the action is commenced. The bond is to guarantee reimbursement by the plaintiff to the municipality in which the property in foreclosure is located for up to $15,000 in costs incurred by the municipality if the municipality razes a building on the property during the foreclosure action. The clerk is required to return the bond to the plaintiff if a building on the property is not razed before the first of any of the following occurs: 1) the foreclosure action is dismissed; 2) the mortgagor redeems the property (pays the amount owed); or 3) the court confirms the sale of the property at the end of the foreclosure action. The bill prohibits any of the costs incurred by the plaintiff from being recovered from the mortgagor or from being included in the amount of the judgment, in the amount of any deficiency, in the amount that the mortgagor must pay to redeem the property, or in the costs of the foreclosure action.
If a mortgagor (person who takes out a mortgage loan to, for example, buy real property) defaults in the repayment of the loan, the mortgagee (person or entity that made the loan, such as a bank) may commence a mortgage foreclosure action, the procedure for which is provided in current law. If the mortgagor owes the money, the court will enter judgment for the mortgagee, who is the plaintiff in the action. Before the property may be sold at sheriff’s sale, a specified period of time, known as the redemption period, must elapse during which the mortgagor may pay the amount owed on the loan. If the amount is not paid by the end of the redemption period, the property will be sold at sheriff’s sale and the amount realized on the sale of the property will be paid against the amount owed on the loan. Under current law, the length of the redemption period for a one−family to four−family residence that is owner−occupied at the commencement of the foreclosure action is 12 months and notice of the sale may not be made before 10 months after the foreclosure judgment is entered. If the plaintiff has waived a deficiency judgment so that the defendant does not have to pay any amount by which what the defendant owes on the mortgage exceeds the amount recovered at the sale of the property, the length of the redemption period is six months and notice of the sale may not be made before four months after the foreclosure judgment is entered. This bill shortens up the redemption periods and the times for noticing the sale for a one−family to four−family residence that is owner−occupied at the commencement of a foreclosure action. Under the bill, if the plaintiff is seeking a deficiency judgment, the redemption period is shortened to six months and notice of the sale may not be made before four months after the foreclosure judgment is entered. If the plaintiff has waived a deficiency judgment, the length of the redemption period is shortened to three months and notice of the sale may not be made before one month after the foreclosure judgment is entered.
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