Medical Liability and Malpractice
Foreclosures 2010 Legislation
(Excludes foreclosures due to tax delinquencies and homeowner associations)
NCSL Contact: Heather Morton, Denver, (303) 364-7700
The housing market continues to be turbulent. Delinquent payments and the number of homeowners entering foreclosure continue to rise, affecting even prime and FHA loans. Job losses and continued unemployment are now driving the delinquency and foreclosure increases. The employment recovery is not anticipated until sometime in 2010. State legislators and other policymakers will be watching to see if foreclosure mediation and other programs designed to help homeowners are actually working to keep people in their homes, or if the programs need to be adjusted to help more homeowners.
In 2010, lawmakers in 40 states and the District of Columbia introduced legislation regarding foreclosures. The list below contains legislation regarding regulating foreclosure consultants and distressed property purchasers, amending the foreclosure process and protecting tenants' rights who are renting home facing foreclosure. Legislation was enacted in 26 states and the District of Columbia: Alaska, Arizona, California, Colorado, Connecticut, Hawaii, Illinois, Indiana, Maine, Maryland, Michigan, Minnesota, Nebraska, New Mexico, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia and West Virginia.
Related NCSL Webpages:
Foreclosures Publications and Resources
2011 Foreclosures Legislation
2008 Introduced Foreclosures Legislation
2008 Enacted Foreclosures Legislation
AL | AK | AZ | CA | CO | CT | DC | FL | GA | HI | IL | IN | KY | LA | ME | MD | MA | MI | MN | MO
NE | NH | NJ | NM | NY | NC | OH | OK | OR | PA | PR | RI | SC | TN | UT | VT | VA | WA | WV | WI
S.B. 117
Currently, persons exercising the right of redemption of real estate must exercise the right within one year of the foreclosure sale. This bill reduces the time period to 90 days from the date of the sale.
Under existing law, in certain circumstances, foreclosure notice consists of publication once a week for three consecutive weeks in a local newspaper. Existing law does not require any additional notice to the borrower prior to foreclosure. This bill requires a foreclosure notice for a residential property also to be mailed to the mortgagor containing the names of the parties to the mortgage, a legal description or street address of the property, the default, and the mortgagee's intent to proceed with foreclosure. This notice requirement applies only to residential property and would not apply to commercial or agricultural property. This bill extends the time of the first newspaper publication of the notice of a foreclosure sale until 60 days after the notice is mailed to the mortgagor. Under existing law, the mortgagor must surrender possession of property within 10 days of notice of the foreclosure sale to entitle the mortgagor to redeem real estate from purchasers. This bill extends the period of time that the possession of the real property must be delivered for purposes of preserving redemption rights to 20 days. Under existing law, a tenant must surrender possession within 10 days of notice of foreclosure sale. This bill extends the time that the possession of the property must be delivered for purpose of preserving redemption to 60 days.
H.B. 108
Signed by governor 6/8/10, Chapter 62
Relates to notice and procedures for real property foreclosures, the sale of property on execution, and deeds of trust.
H.B. 2309
Passed House 3/23/10
Adds regulations for foreclosure consultants and provides for full disclosure to the homeowner. Establishes a Class 1 misdemeanor for fraud or deceit by foreclosure consultants.
For any residential property for which a city, town or county receives a notice of pending foreclosure pursuant to §33-807, the city, town or county on its own motion may inspect the exterior of the property and send notice to the beneficiary of the deed of trust to remove rubbish, trash, weeds or other accumulation of filth, debris or dilapidated structures that constitute a hazard to public health and safety from buildings, grounds and lots of the trust property. Thereafter, the beneficiary is properly noticed as a party to any order to remove or abate the hazard pursuant to this section, including any order regarding payment of costs or an assessment. The trustee shall pay all assessments levied pursuant to this section against the trust property and, on recordation of a release of assessment lien by the city, town or county, may proceed with a notice of sale pursuant to §33-807. If the city, town or county does not send a notice to the beneficiary within 90 days after receiving the notice of pending foreclosure, the city, town or county waives its authority to order any removal against the beneficiary pursuant to this section, and the beneficiary may proceed with a notice of sale pursuant to §33-807.
Signed by governor 4/19/10, Chapter 91
Requires sheriff’s deeds to contain the grantee's, purchaser's or redemptioner's name and address and the state in which the grantee, purchaser or redemptioner is incorporated, organized, licensed, chartered or registered, together with the name of the country under which the grantee, purchaser or redemptioner is chartered or formed.
Provides that a city, town or other taxing jurisdiction shall not levy a transaction privilege, sales, use, franchise or other excise tax or fee, however denominated, on a transfer of real property to a creditor or an affiliate of a creditor as the result of a default or potential default on a debt. This subsection applies without regard to whether the creditor or its affiliate is licensed with the taxing jurisdiction. A tax may be imposed with respect to a subsequent sale of the real property by the creditor or its affiliate to a person who is unrelated to the creditor or its affiliate if the property qualifies as improved real property under the model city tax code.
Regulates foreclosure consultants.
Signed by governor 4/29/10, Chapter 325
Stipulates that for property with a first deed of trust recorded between January 1, 2003 and December 31, 2008, before a trustee can give notice of a trustee’s sale, the lender is required to attempt to contact the borrower in order to explore options to avoid foreclosure at least 30 days before the notice is recorded. Requires the notice of a trustee’s sale to be made in writing and maintained in the credit file. Exempts loans made, purchased or serviced by: (i) A state or local public housing agency or authority. (ii) Loans that are collateral for securities purchased by a state or local public housing agency or authority. Exempts beneficiaries who are not professional lenders as well as lenders who comply with the Home Affordable Modification Program. Explains that the provisions do not require a beneficiary to violate any agreement they have with a federal or state regulatory agency or any requirement of federal law.
Allows for a temporary stay of a trustee’s sale; requires an affidavit from the homeowner. During the 60-day postponement period, the owner shall have the opportunity to negotiate a revised payment or other revised terms of the loan and may accept the assistance of a representative of a private nonprofit organization, a representative of a city, town, county or state government or a representative of a federal agency to assist the owner in meeting with and negotiating a resolution with the lender. The trustee shall assist in providing information, including lender contact information, and shall cooperate with any meetings and negotiations that occur between the owner and lender. During the 60-day postponement period, the owner shall make payments on the loan that is in foreclosure in an amount that the owner and lender agree is just and equitable. Failure to make the payment agreed to pursuant to this subsection terminates the stay of foreclosure, and on notice from the lender of failure to make a payment after the expiration of the 60-day period, the trustee may reschedule the trustee's sale. If the owner continues to make a timely monthly payment in the amount agreed to pursuant to this subsection, a trustee's sale may not be held any earlier than one year after the date of the originally scheduled trustee sale. On completion of the one-year period, and unless the lender has revised the terms of the loan and directed the trustee to cancel the sale, the trustee's sale may proceed as otherwise provided by law.
Creates a mandatory foreclosure mediation program.
Allows a homeowner to temporarily rent the property in foreclosure.
Enacts the Arizona Home Equity Theft Prevention Act; regulates foreclosure consultants.
For any residential property for which a city or town receives a notice of pending foreclosure pursuant to §33-809, the city or town on its own motion may inspect the exterior of the property and send notice to the beneficiary of the deed of trust to remove rubbish, trash, weeds or other accumulation of filth, debris or dilapidated structures that constitute a hazard to public health and safety from buildings, grounds and lots of the trust property. Thereafter, the beneficiary is properly noticed as a party to any order to remove or abate the hazard pursuant to this section, including any order regarding payment of costs or an assessment. Allows for a temporary stay of a trustee’s sale; requires an affidavit from the homeowner. During the 60-day postponement period, the owner shall have the opportunity to negotiate a revised payment or other revised terms of the loan and may accept the assistance of a representative of a private nonprofit organization, a representative of a city, town, county or state government or a representative of a federal agency to assist the owner in meeting with and negotiating a resolution with the lender. The trustee shall assist in providing information, including lender contact information, and shall cooperate with any meetings and negotiations that occur between the owner and lender. During the 60-day postponement period, the owner shall make payments on the loan that is in foreclosure in an amount that the owner and lender agree is just and equitable. Failure to make the payment agreed to pursuant to this subsection terminates the stay of foreclosure, and on notice from the lender of failure to make a payment after the expiration of the 60-day period, the trustee may reschedule the trustee's sale. If the owner continues to make a timely monthly payment in the amount agreed to pursuant to this subsection, a trustee's sale may not be held any earlier than one year after the date of the originally scheduled trustee sale. On completion of the one-year period, and unless the lender has revised the terms of the loan and directed the trustee to cancel the sale, the trustee's sale may proceed as otherwise provided by law.
Signed by governor 5/7/10, Chapter 264
Stipulates that the owner of a residential property is required to include written notice of the possible foreclosure in the rental agreement, if entered into after the foreclosure action was initiated. Specifies that the form of the notice of foreclosure include: The date, time and place of the sale of the property and the name of the court where the action was filed or trustee, attorney or other responsible party to be contacted for more information about the foreclosure. Stipulates that if the owner fails to provide notice as prescribed, the tenant may recover damages and the amount of the security deposit, as well as obtain injunctive relief. Stipulates that the bill’s provisions do not apply to multifamily residential rental units.
S.B. 1130
Prescribes regulations for foreclosure consultants, provides full disclosure to the homeowner regarding contractual provisions, compensation, cancellation and penalties. Establishes a Class 1 misdemeanor for fraud or deceit by foreclosure consultants and permits injured homeowners to recover damages, reasonable attorney’s fees, costs and punitive damages.
Requires the trustee to mail notices of sales to all known addresses of a trustor and other interested parties. Outlines requirements for mailing notices, applications and affidavits that pertain to a trustee’s sale.
Amends redemption provisions to provide that any person who is entitled to redeem under article 4 of this chapter may redeem at any time before judgment is entered, notwithstanding that an action to foreclose has been commenced, but if the person who redeems has been served personally or by publication in the action, or if the person became an owner after the action began and redeems after a notice is recorded pursuant to §12-1191, judgment shall be entered in favor of the plaintiff against the person for the costs incurred by the plaintiff, including reasonable attorney fees to be determined by the court.
A.B. 111
Died pursuant to Art. IV, Sec. 10(c) of the Constitution 1/31/10
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 January 1, 2007, and before January 1, 2010, as provided. The Emergency Economic Stabilization Act of 2008 extended the operation of those provisions to debt that is discharged before January 1, 2013. This bill provides further conformity to those federal acts, as provided.
Died on inactive file 2/2/10
Until January 1, 2013, limits the authority of an owner to terminate a tenancy of a qualified rental unit, which would be defined as real property that is rented or leased for residential purposes whose owner acquired the property as a result of a default on a mortgage, as specified. Provides that, if the term of the tenancy has not been specified by the parties or is terminable at will, the owner shall not terminate the tenancy sooner than 90 days having passed after acquiring ownership. Provides that, if the term of the tenancy has been specified by the parties, the owner shall not terminate the tenancy until the end of the remaining term of the tenancy, but not sooner than 90 days having passed after acquiring ownership. Provides that these limitations do not apply in certain circumstances, including when a tenant has failed to pay rent or has violated a condition of the tenancy, as described. Provides that a landlord who violates this provision would be liable to the tenant in a civil action for actual damages and a fine not to exceed $100 for each day the landlord remains in violation of this provision, but not less than $250 for each separate cause of action. Authorizes a tenant to seek injunctive relief, as specified.
The Personal Income Tax Law authorizes various credits against the taxes imposed by that law. This bill would, for taxable years beginning on or after January 1, 2009, and before January 1, 2012, allow a credit in an amount, not to exceed $3,000, that is otherwise equal to two percent, of the amount paid or incurred for the purchase as a primary residence of a foreclosed dwelling by a taxpayer whose gross income does not exceed a certain threshold. The Personal Income Tax Law allows a deduction for any qualified residence interest. This bill would, for taxable years beginning on or after January 1, 2010, and before January 1, 2012, allow that deduction only with respect to a qualified residence that is a principal residence, as provided. The Personal Income Tax Law and the Corporation Tax Law impose a specified minimum tax on partnerships, limited liability companies, and corporations. This bill would, for taxable years beginning on or after January 1, 2009, and before January 1, 2012, adjust those minimum tax amounts for inflation, as provided.
A.B. 1346
Died at desk 2/2/10
Makes nonsubstantive, technical changes to the existing laws that regulates foreclosure consultants and, in this regard, defines a foreclosure consultant as a person who performs, or who solicits, represents, or offers to perform, for compensation, specified activities, including the obtaining of forbearance from a beneficiary or mortgagee and existing law that provides that a foreclosure consultant who receives any fee before fully performing every service for which he or she has contracted is guilty of a misdemeanor.
Establishes the Monitored Mortgage Workout (MMW) Program that would be offered to all borrowers to provide them with an opportunity to explore options to avoid foreclosure. This bill requires that any notice of default of a residential real property, as defined, sent to a borrower include a notice of the borrower's right to participate in the MMW Program as well as the documents that authorize the borrower to elect to participate in the MMW Program. This bill authorizes the California Housing Finance Agency to administer the MMW Program. This bill provides that, if a borrower elects to participate in the MMW Program, no further action to foreclose upon the property may be instituted until the completion of the borrower's participation in the MMW Program.
Died on inactive file 11/30/10
Establishes the Mediated Mortgage Workout (MMW) Program. The program would be a process whereby borrowers and lenders would engage in mediation for purposes of developing a loan modification plan. The program would require that specified information regarding the MMW Program be included with the notice of default sent to a borrower, as defined, on a loan secured by residential real property of one- to four-family dwelling units that is the primary residence of the borrower, as specified. The bill would require that this additional notice be recorded in the office of the county recorder. The bill would provide for an administrator of the program who would be appointed by the governor and confirmed by the Senate. The program would require a borrower who elects to participate in the program to complete a specified form and return the form to the administrator of the program not later than 30 calendar days after receiving the notice of default. The program would require the borrower to submit other information to the administrator within 10 days of requesting to participate in the program, including tax returns, income verification, and a specified deposit of funds. The program would also require a borrower who elects to participate in the program to deposit with the administrator 50 percent of the current mortgage payment each month during participation in the MMW Program. The bill would also prohibit a mortgagee, trustee, beneficiary, or authorized agent from reporting negative credit information to a credit reporting agency about a borrower who has successfully completed the MMW Program and accepted a mortgage loan modification. The bill would impose various administrative fees, payable by the mortgagee, trustee, beneficiary, or authorized agent, or by the borrower, as specified, who participate in the MMW Program. The bill would also provide that the timelines set forth in the provision governing the exercise of the power of sale, as specified, would be suspended until the completion of the program, as specified. The bill would require the administrator of the program, among other duties, to implement rules and standards for selecting qualified mediators and to develop standards for forms and reports required to implement the program. The bill would also require the administrator, upon receipt of a borrower's form whereby he or she elects to participate in the program to randomly appoint an individual to serve as mediator from a list of qualified mediators in the county in which the property is located. The bill would establish the compensation for a mediator who provides his or her services to the program and require a mediator to use reasonable efforts to ensure that each MMW Program is completed within 60 calendar days of the mediator's appointment. The bill would also require the mediator to prepare a final report, as specified. The bill would also require, only until January 1, 2015, the administrator to report quarterly to the Legislature regarding the MMW Program, as specified. The bill also requires each mortgagee, trustee, beneficiary, or authorized agent participating in the program to post specified data about its loans on its Internet Web site.
This bill provides that foreclosure consultant services include arrange or attempt to arrange the audit of any obligation secured by a lien on a residence in foreclosure and thereby requires a foreclosure consultant to register with the department to arrange or attempt to arrange those audits.
Existing law requires a lender to file a notice of default in the case of nonjudicial foreclosure prior to enforcing a power of sale as a result of a default on an obligation secured by real property, as specified. Existing law also requires that a notice of sale be given before the power of sale may be exercised. This bill, until 2013, creates an exception to the provision governing the exercise of the power of sale by providing that if a property contains five or more multifamily units and a public entity, as defined, is a party to a regulatory agreement or recorded deed restriction on the property, the public entity may, by written notice to the trustee, postpone the sale date by no more than 60 days, as specified. The bill provides that, if multiple public entities are parties to a regulatory agreement or a recorded deed restriction on the property, only one entity may postpone the sale date. The bill also provides that the power to postpone a sale date pursuant to these provisions may be exercised only once, and that the period of postponement expires after 180 days have elapsed since filing the notice of default.
Existing law requires that before any sale of property can be made under the power of sale contained in any deed of trust or mortgage, or any resale resulting from a rescission for a failure of consideration, notice of the sale must be given, published, and posted in a specified manner at least 20 days before the date of sale, as specified. Existing law also requires the mortgagee, trustee, or other person authorized to record the notice of default or the notice of sale to send to each mortgagee or trustee a copy of the notice of sale at least 20 days before the date of sale. Existing law provides that there may be a postponement or postponements of the sale proceedings, under specified circumstances. This bill provides that if there is a postponement, or if there are postponements, of the sale proceedings, the borrower shall receive a new notification before the date of the actual sale.
S.B. 38, Eighth Special Session
This bill, until January 1, 2013, requires a mortgagee, trustee, beneficiary, or authorized agent, prior to the filing of a notice of default, to provide the borrower with an application for a loan modification and other foreclosure avoidance options and a specified notice regarding the borrower's rights during the foreclosure process, subject to specified exceptions. The bill requires an unspecified state entity to make that notice available in English and specified languages. This bill prohibits the mortgagee, beneficiary, or authorized agent from combining collections activity with communication with the borrower about foreclosure avoidance options. The bill deletes the requirement that the notice of default contain a specified declaration, and instead requires the mortgagee, beneficiary, or authorized agent to, concurrently with the filing of a notice of default, record a declaration of compliance that attests to specified facts, and mail the borrower a notice stating that these requirements have been met. The bill provides that failure to record a declaration of compliance, or recordation of a declaration of compliance that fails to meet the specified requirements, would constitute grounds for the borrower to bring an action to void the foreclosure, or to recover either treble damages or statutory damages in the amount of $10,000, whichever is greater, from the mortgagee, trustee, beneficiary, or authorized agent, if specified conditions exist.
Returned to Secretary of Senate pursuant to Joint Rule 56 2/1/10
Provides conformity to specified provisions of the federal Emergency Economic Stabilization Act of 2008 relating to the exclusion of the discharge of qualified principal residence indebtedness, as defined, from a taxpayer's income if that debt is discharged on or after January 1, 2009, and before January 1, 2013.
Existing law generally regulates mortgage foreclosure consultants, as defined. Existing law states that it is the intent of the Legislature in those regulatory provisions to require that foreclosure consultant service agreements be expressed in writing, to safeguard the public against deceit and financial hardship, to permit rescission of foreclosure consultation contracts, to prohibit representations that tend to mislead, and to encourage fair dealing in the rendition of foreclosure services. This bill states the intent of the Legislature to enact legislation that would protect consumers who seek out debt settlement or debt management services by codifying acceptable industry business practices and outlawing unacceptable industry business practices.
This bill suspends specified credits and deductions for a taxpayer that is a participant, as specified, in the federal Troubled Assets Relief Program, as provided.
Vetoed by governor 7/15/10
Existing law authorizes 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 the party or parties executing a deed, quitclaim deed, or deed of trust within 30 days of the recording of one of those documents. This bill, until January 1, 2015, modifies that authorization to also include notice of recordation, provided by mail by the recorder or a designee of the board, to a party or parties executing a deed, quitclaim deed, or deed of trust, within 30 days of recordation, or to a party or parties subject to a notice of default or notice of sale of a property, including the occupants of that property, within five days, but in any event no more than 20 days, of recordation. If the board of supervisors adopts an authorizing resolution, as specified, the bill requires the County of Los Angeles to submit a report with prescribed information to certain committees of the Legislature on or before January 1, 2014. Existing law also authorizes the Los Angeles County Recorder to collect a fee for mailing notice of recordation from any party filing a deed, quitclaim deed, or deed of trust, unless that party is a government entity. Existing law prohibits this fee from exceeding the cost of mailing the notice of recordation or $7. This bill, until January 1, 2015, additionally authorizes the recorder to collect a fee for notice of recordation from any party other than a government entity that files a notice of default or notice of sale. The bill also authorizes the recorder to use a portion of the collected fee to pay the actual cost, if any, of providing information, counseling, and assistance to a person who receives the notice.
This bill prohibits a deficiency judgment under a note secured by a first deed of trust or first mortgage for a dwelling of not more than four units in any case in which the trustor or mortgagor sells the dwelling for less than the remaining amount of the indebtedness due at the time of sale with the written consent of the holder of the first deed of trust or first mortgage. The bill provides that written consent of the holder of the first deed of trust or first mortgage to that sale shall obligate that holder to accept the sale proceeds as full payment and to fully discharge the remaining amount of the indebtedness on the first deed of trust or first mortgage. The bill specifies that those provisions would not limit the ability of the holder of the first deed of trust or first mortgage to seek damages and use existing rights and remedies against the trustor or mortgagor or any third party for fraud or waste if the trustor or mortgagor commits either fraud with respect to the sale of, or waste with respect to, the real property that secures that deed of trust or mortgage. The bill makes these provisions inapplicable if the trustor or mortgagor is a corporation or political subdivision of the state.
Existing law governs unlawful detainer proceedings. Existing law authorizes the court clerk to allow access to limited civil case records filed under these provisions to certain persons, including a party to the action or a resident of the premises, under certain conditions, without regard to when they request that access. Existing law also authorizes the clerk to allow access to any other person 60 days after the complaint has been filed, unless a defendant prevails in the action within 60 days of the filing of the complaint, in which case the clerk may not allow access to any court records in the action, except as specified. This bill additionally authorizes the clerk to allow access to those records to any other person in the case of a complaint involving residential property that has been sold in foreclosure, or under other, specified proceedings, as indicated in the caption of the complaint, if 60 days have elapsed since the complaint was filed with the court and judgment against all defendants has been entered for the plaintiff, after a trial. The bill also requires the plaintiff in those proceedings to include a specified caption in the complaint. If judgment is not entered under these conditions, the bill prohibits the clerk from allowing access to any court records in the action, except to the persons described above who are permitted access without regard to when they request access. Existing law governing unlawful detainer proceedings also requires that a tenant or subtenant in possession of a rental housing unit, as defined, which has been sold by reason of certain enumerated causes, including foreclosure, who rents or leases the rental housing unit either on a periodic basis, as specified, or for a fixed period of time, be given written notice to quit, as specified, at least as long as the term of hiring itself but not exceeding 30 days, before the tenant or subtenant may be removed from that rental housing unit. This bill additionally requires, until January 1, 2013, that any notice to quit regarding a housing unit served within one year after a foreclosure sale include a separate cover sheet that contains an additional notice to renters. The bill sets forth the content of this notice providing the tenant with specified information regarding tenants' rights. The bill also provides that under certain circumstances the cover sheet need not be served, as specified.
Existing law provides that no deficiency judgment lies in any event after a sale of real property or an estate for years for failure of the purchaser to complete the contract of sale, or under a mortgage or trust deed given to the vendor to secure payment of the balance of the purchase price of real property, or under a mortgage or trust deed on a dwelling, as specified, given to a lender to secure repayment of a loan which was in fact used to pay all or part of the purchase price of the dwelling. This bill provides that a loan used to pay all or part of the purchase price of real property or an estate for years includes subsequent loans, mortgages, or deeds of trust that refinance or modify the original loan, but only to the extent that the subsequent loan was used to pay debt incurred to purchase the real property. The bill becomes operative on June 1, 2011, and applies only to actions filed after its operative date.
Existing law requires that, upon a breach of the obligation of a mortgage or transfer of an interest in property, the trustee, mortgagee, or beneficiary record a notice of default in the office of the county recorder where the mortgaged or trust property is situated and mail the notice of default to the mortgagor or trustor. After the lapse of not less than three months from the filing of the notice of default, the mortgagee, trustee, or other person authorized to take the sale is required to give notice of sale, stating the time and place, as specified. This bill instead permit a mortgagee, trustee, or other person authorized to take sale to file a notice of sale up to five days before the lapse of the three-month period provided that the date of sale is no earlier than three months and 20 days after the filing of the notice of default.
Passed Senate 6/3/10
This bill, until January 1, 2013, extends requirements for those types of dwellings to apply to mortgages or deeds of trust recorded prior to January 1, 2009, if the loans are required to be reviewed under federal Home Affordable Modification Program (HAMP) guidelines, or between January 1, 2003, and January 1, 2009, if the loans are not required to be reviewed under HAMP guidelines. The bill requires a mortgagee, beneficiary, or authorized agent, within a specified time period prior to the filing of a notice of default, to provide the borrower with written information regarding loan modifications and a specified notice regarding the borrower's rights during the foreclosure process, subject to specified exceptions. The bill requires an unspecified state entity to make that notice available in English and specified languages. The bill further revises the borrower contact requirements described above by requiring a mortgagee, beneficiary, or authorized agent to make reasonable borrower solicitation efforts, as specified, to explore options for the borrower to avoid foreclosure. The bill prohibits a mortgagee, trustee, beneficiary, or authorized agent from filing a notice of default until the borrower has been evaluated and determined to be ineligible for a loan modification or the borrower has failed to submit an application prior to the passing of the deadline. The bill specifies minimum time periods in which the borrower may submit an application or supplemental information for a loan modification, and requires the mortgagee, beneficiary, or authorized agent, if it denies the application, to send a denial explanation letter within a specified time period. These requirements would not apply to a mortgagee, beneficiary, or authorized agent that has no loan modification option available to the borrower. This bill further requires, until January 1, 2013, with respect to those properties described above, that a mortgagee, beneficiary, or authorized agent, concurrently with the filing of a notice of default, record a declaration of compliance that attests to specified facts relating to its borrower solicitation and foreclosure avoidance efforts. The bill provides that failure to record a declaration of compliance, or failure to materially comply with specified provisions, would constitute grounds for the borrower to bring an action to void the foreclosure, or to recover specified damages from the mortgagee, trustee, beneficiary, or authorized agent, if specified conditions exist.
This bill enacts the RCFE Residents Foreclosure Protection Act of 2010 which would, with certain exceptions, require the licensee of a facility to notify the department in writing within two business days of specified events or obtaining knowledge of events, and authorizes the department to initiate a compliance plan, noncompliance conference, or other appropriate action upon receipt of the notification. This bill requires the licensee of a facility, with certain exceptions, to notify the department and all residents, applicants, and, if applicable, their legal representatives, of other specified events, and requires the department to initiate a compliance plan, noncompliance conference, or other appropriate action upon receipt of this notice.
This bill requires a governmental entity, prior to imposing a fine or penalty for failure to maintain a vacant property that is subject to a notice of default, that is purchased at a foreclosure sale, or that is acquired through foreclosure, to provide the owner of that property with a notice of the violation and an opportunity to correct the violation. This notice requirement would not apply if the governmental entity determines that a specific condition of the property threatens public health or safety. The bill further provides that the costs of nuisance abatement measures taken by a governmental entity with regard to property that is subject to a notice of default, that is purchased at a foreclosure sale, or acquired through foreclosure, shall not exceed the actual and reasonable costs of nuisance abatement This bill also prohibits a governmental entity from imposing an assessment or lien for the costs of nuisance abatement prior to the adoption of those costs by the elected officials of that governmental entity at a public hearing.
Postponed indefinitely 2/4/10
Under current law, a person who goes into the yard of a foreclosed home or other unoccupied property to clean up trash, remove weeds, or water the lawn may be considered a trespasser and, if the person injures himself or herself while doing so, may have a claim against the landowner for negligence. The bill specifies that persons who go onto unoccupied property on an unpaid basis to clean up trash, remove weeds, or water the lawn have the implied consent of the landowner to do so, and are owed an intermediate duty of care concerning hazardous conditions on the property that is more than is owed to trespassers, but less than is owed to guests or business customers. Amends the civil and criminal trespassing laws, respectively, to exempt persons who engage in such activity, but only to the extent of that activity and so long as they do no actual damage to the property.
The act amends key provisions of the "Colorado Foreclosure Protection Act", enacted in 2006, including the definition of an "equity purchaser", and imposes additional duties on equity purchasers. A person who acquires title to a residence in foreclosure as a result of a short sale in which an appropriate addendum to the contract is included and all statutorily required disclosures are made is exempted from the definition of an "equity purchaser". "Home owner" is redefined to mean the owner of a dwelling who occupies it as a principal place of residence, rather than the owner of a residence in foreclosure. For purposes of the equity purchaser provisions, "residence in foreclosure" is defined as a residence that is occupied as the home owner's principal residence, is encumbered by a residential mortgage loan, and as to which an equity purchaser knows or should know that the loan is at least 30 days in default. A "short sale" is defined as a transaction in which a residence in foreclosure is sold for less than the amount due under a recorded lien, and the lien is released. The requirement that a sales contract be in "bold-faced" type is eliminated and, instead, contracts must be "legible". A uniform 9-point type size is adopted for certain documents. If the equity purchaser knows or should know that the home owner's principal language is other than English, a separate disclosure form in the home owner's principal language must be provided along with the contract. In a short sale transaction in which the equity purchaser intends to sell the property to another purchaser within 14 days, the equity purchaser must disclose to the seller and the seller's lender, as well as to any subsequent purchasers and their lenders, the terms of the intended resale including the amount to be paid.
Current law allows a 90-day foreclosure deferment period for eligible borrowers and requires that a notice of such opportunity be posted on the eligible borrower's property. If the public trustee is incorrectly notified that a property is eligible for such a posting, the act establishes ways to correct such notice. Current law requires the public trustee to hold a hearing before foreclosing on a property. The act requires a notice to be posted at least 15 days before the hearing on the property subject to the sale, and clarifies that the notice of opportunity for foreclosure deferment may not be posted prior to the date the public trustee determines that the documents filed for the commencement of the foreclosure are complete and accurate. The act also requires that the notice of opportunity for foreclosure deferment include a telephone number for the holder and, if applicable, the attorney for the holder and the public trustee foreclosure number. The act also gives general rule-making authority to the division of housing in the department of local affairs related to the deferment process. The act requires a foreclosure counselor to inform the holder if an eligible borrower who qualifies for a foreclosure deferment chooses not to participate. It also prohibits an eligible borrower from qualifying for a foreclosure deferment if the borrower has transferred title to the property to another party.
Currently, the initial foreclosure sale date for residential property by a public trustee is set between 110 and 125 calendar days after the recording of the notice of election and demand (notice). For a five-year period, the bill creates a method for an eligible holder of an evidence of debt (holder) to elect to have an expedited sale of residential property, which will occur between 40 and 55 calendar days after the recording of the notice. In order for the expedited sale to be conducted, a court must issue an order for expedited sale (order), and a copy of the order must be filed with the public trustee. The court shall only issue an order if, among other things: the property has been abandoned; or the grantor of the deed of trust requests the order for expedited sale. The bill establishes that an affidavit that meets certain criteria is prima facie evidence of abandonment. If an expedited sale is set, the bill makes the following modifications to a public trustee's process: Replaces the original mailing list with an expedited mailing list, which is filed later and includes all persons on an amended mailing list; eliminates notice related to a foreclosure deferment; eliminates the first mailing of the combined notice; requires the second mailing of the combined notice to be sent earlier; establishes a deadline for delivering an amended mailing list; requires a copy of a section of the expedited sale law to be mailed with the combined notice; reduces the publication of the combined notice to three times and requires the publication to be completed more than five days prior to the sale; and limits a holder's ability to request a continuance of the expedited sale. The bill also requires an expedited proceeding to be withdrawn in certain circumstances and specifies that an expedited sale shall not apply to a judicial foreclosure.
Current law requires the holder of a residential mortgage (holder) to send written notice to a debtor 30 days prior to filing a foreclosure. The bill changes the time to 60 days and requires the notice to include information concerning: The holder's duty to negotiate for a mutually acceptable agreement to avoid foreclosure (mutually acceptable agreement); and if a foreclosure action is commenced, the duty of the holder to participate in mediation. The bill requires the holder to negotiate for a mutually acceptable agreement prior to commencing a foreclosure. Prior to issuing an order authorizing sale under a residential mortgage loan, the bill requires the court to: (i) Appoint a mediator; (ii) Verify that the costs of mediation have been paid; and (iii) Receive from the mediator a notice that the parties were unable to reach a mutually acceptable agreement. The mediator shall schedule a mediation. The bill specifies sanctions for persons who fail to appear, fail to provide documents requested by the mediator, or fail to negotiate in good faith. At the conclusion of the mediation, the bill requires the mediator to notify the parties and the court of the outcome. The holder is responsible for the payment of the costs of the mediation. The bill directs the Colorado Supreme Court to adopt rules concerning who is qualified to act as a mediator. The bill grants immunity from civil action to a mediator acting in good faith. The bill makes a waiver of any rights related to a mortgage deferment prior to the date of a default void as against public policy. The bill removes the repeal of the mortgage deferral provisions.
Postponed indefinitely in House 3/16/10
Clarifies that the holder of a certificate of purchase (COP) of property at a public trustee's or sheriff's sale is entitled to pay off junior lienors during the redemption period for the amount of the lien plus allowable fees and costs; requires a junior lienor to accept the payment and to execute a release of the lien; requires junior lienors to accompany their notice of intent to redeem with a statement of the amount due on their lien; allows the holder of the (COP) to avoid redemption by a junior lienor by recording the release.
Failed Joint Favorable deadline 3/18/10
Appropriates $300,000 to the Labor Department for the mortgage crisis job training program.
Signed by governor 5/29/10, Public Act 181
Extends the date of the termination of the foreclosure mediation program.
Failed Joint Favorable deadline 4/6/10
Restores the exemption from the conveyance tax for transfers made pursuant to a foreclosure by sale and exempts transfers of a transferor's principal residence when (1) the transfer is being made in lieu of a foreclosure, and (2) the transfer is a short sale.
This bill extends until July 1, 2012 the foreclosure mediation program for residential real property scheduled to expire on July 1, 2010. The bill also sets certain requirements for the mediation. Specifically, it requires the lender or lender's counsel to provide the borrower with the address, phone number, and e-mail address for persons with the authority to agree to a proposed settlement, including the lender, mortgage servicer, and lender's agent. This information must be provided by the date of the first mediation session. The bill also requires the lender's agent to verify the receipt of information requested from the borrower. The bill requires the lender or lender's attorney to bring a current itemized list of all fees and costs to the first mediation session, including: 1. any charges and attorney's fees requested by the lender and 2. all overdue amounts that the borrower must pay to fully satisfy the mortgage loan. The lender must bring an itemized list of any changes to subsequent mediation sessions. Finally, the bill requires the lender, borrower, and their attorneys to make a good faith effort to mediate all issues and allows the court to sanction any party who fails to comply with this requirement.
Clarifies provisions concerning the award of costs and attorney's fees in an action of foreclosure of a mortgage or lien or an action upon a bond which has been substituted for a mechanic's lien.
Makes certain modifications to the foreclosure mediation program, including the elimination of the sunset date of June 30, 2010, adopts as state law the central protections for tenants after foreclosure contained in the federal Protecting Tenants at Foreclosure Act of 2009, clarifies the Cash for Keys Act, and allows for a foreclosure by market sale.
Passed Senate 4/28/10
Requires mortgage lenders who seek to foreclose on residential real property to provide notice to the defendant that identifies the individual who has authority to refinance the mortgage, and permits the court to deny or delay entry of a mortgage lender's motion to foreclose or motion for a deficiency judgment when the court finds that the mortgage lender did not provide such notice or act reasonably, provided the court finds that fairness and equity requires such result.
S.B. 502, First Special Session
Signed by governor 6/22/10, Public Act 10-2
The act allows the CHFA, under the Connecticut Fair Alternative Mortgage Lending Initiative and Education Services (CT FAMILIES) program and the Homeowner's Equity Recovery Opportunity (HERO) program, to make mortgage loans to eligible borrowers who purchase (1) foreclosed properties, (2) abandoned properties, or (3) properties conveyed by deed in lieu of foreclosure or short sale. The CT FAMILIES program offers 30-year fixed-rate refinance loans to Connecticut homeowners who are delinquent on their fixed-rate or adjustable-rate mortgages. The program also provides second mortgage loans in conjunction with the refinance loan.
B18-691
Signed by mayor 12/9/10, Act A18-635
Requires mortgage lenders to provide homeowners with a notice of default on residential mortgage and to provide homeowners with the right to engage in mediation prior to foreclosure on residential mortgages.
Signed by mayor 11/17/10, Act A18-599
Amends, on an emergency basis, an Act to establish a code of law for the District of Columbia to require mortgage lenders to provide homeowners with a notice of default on residential mortgages and to provide homeowners with the right to engage in mediation prior to foreclosure on residential mortgages.
PR18-1175
Adopted 11/9/10, Resolution R18-667
Declares the existence of an emergency with respect to the need to require mortgage lenders to provide homeowners with a notice of default on residential mortgages and to provide homeowners with the right to engage in mediation prior to foreclosure on residential mortgages.
H.B. 35
Died in committee 4/30/10
Prohibits deficiency decrees in final judgments in foreclosure actions on homestead property; specifies deficiency decrees as unenforceable.
Designates act "Foreclosure Bill of Rights"; provides procedural requirements and limitations for plaintiffs, defendants, and courts in homestead property mortgage foreclosure actions; specifies document production requirements; requires mediation; specifies settlement negotiation requirements; provides criteria for commercial reasonableness of renegotiated loans; requires DBPR to adopt rules relating to appraisal methods.
Laid on table 3/2/10
Requires lenders to notify tenants or lessees of potential foreclosure or short-sale actions against rental property; requires lenders to provide tenants or lessees first right of refusal to purchase property at fair market value; specifies eligibility requirements to exercise such right; requires lenders to use escrow funds for specified purposes.
Died in messages 4/30/10
Provides that purchaser of residential property in foreclosure may terminate tenant's residential rental agreement; provides exception for immediate purchaser intending to sell to buyer who intends to occupy as primary residence; specifies contents of termination notice to be given to tenant.
Withdrawn prior to introduction 2/25/10
Specifies limited statute of limitations for specified deficiency judgments; requires claims for deficiency connected with foreclosure actions to be filed within specified time after foreclosure sale; provides exception for participation in Florida Mortgage Foreclosure Diversion Program; provides exception criteria; establishes Florida Mortgage Foreclosure Diversion Program.
Provides that a person acquiring title to a condominium by foreclosure or recorded deed is liable for certain additional unpaid expenses and assessments; clarifies the definition of "successor or assignee"; requires that certain first mortgagees exercise property preservation rights under certain circumstances; authorizes a homeowners' association to preserve or maintain the unit in a safe condition under certain circumstances; requires that certain costs incurred by an association be deemed an individual assessment against the unit being foreclosed; provides that a first mortgagee is liable for certain special assessments levied against a unit during the pendency of a foreclosure action under certain circumstances.
Requires financial institution that institutes foreclosure proceeding against residential property to pay all fees associated with or owed by property that accrue from date foreclosure action is initiated until foreclosure is finalized; provides for retroactive application.
Requires specified fines or liens to be recorded to constitute property lien; authorizes ordinances that specify property conditions as code violations subject to enforcement action; preempts, to state, laws providing for alienation of property and foreclosure of mortgages and liens; revises provisions relating to recording, validity, priority, duration, and enforcement of liens against property.
Died in council 4/30/10
Creates "Homeowner Relief and Housing Recovery Act"; provides general provisions for nonjudicial foreclosures; provides criteria for notice and knowledge; provides for transactions creating security interest; provides for time of foreclosure; provides procedures, requirements, and limitations before foreclosure; specifies right to foreclose; requires notice of default.
Provides requirements for landlords following commencement of a foreclosure action. Provides for security deposits and advance rents to be maintained in a specified manner. Provides for disclosure of the foreclosure action to prospective tenants. Provides an exception to liability for failure to provide notice.
Provides that a person acquiring title to a condominium by foreclosure or recorded deed is liable for certain additional unpaid expenses and assessments; clarifies the definition of “successor or assignee”; requires that certain first mortgagees exercise property preservation rights under certain circumstances; authorizes a homeowners’ association to preserve or maintain the unit in a safe condition under certain circumstances; requires that certain costs incurred by an association be deemed an individual assessment against the unit being foreclosed; provides that a first mortgagee is liable for certain special assessments levied against a unit during the pendency of a foreclosure action under certain circumstances.
Requires a lienholder to serve a certain notice on a homestead owner before a foreclosure sale. Specifies that the notice must inform the owner that bankruptcy is a potential alternative to foreclosure and warn against foreclosure "saving" schemes. Amends a specified provision relating to the required service of notice of potential relief through bankruptcy.
Specifies applicability to homestead property and certain foreclosure actions. Provides procedural requirements and limitations for plaintiffs, defendants, and courts in certain foreclosure actions. Provides requirements for landlords following commencement of a foreclosure action. Provides for disclosure of the foreclosure action to prospective tenants. Authorizes a tenant to terminate the lease upon receiving notice.
Expresses the legislative intent to revise laws relating to foreclosure.
Requires that during foreclosure proceedings a landlord continue to hold money deposited or advanced by a tenant in a specified manner. Requires a landlord to disclose the existence of foreclosure proceedings to a prospective tenant. Exempts an agent of a landlord from liability for failing to notify prospective tenants of foreclosure proceedings under certain circumstances.
Creates the "Nonjudicial Foreclosure Act for Nonhomestead Properties". Specifies the application of the act to mortgages or other security interests. Specifies the application of principles of law and equity. Specifies the manner in which a secured creditor must give notice to a recipient. Specifies acts that constitute abandonment of a homestead property.
Relates to foreclosure in general, so as to change the time for the delivery of a notice of the initiation of foreclosure proceedings; provides for an opportunity, prior to foreclosure, for a debtor to cure a foreclosure and bring the debt current by making all past due payments along with any late fees and charges.
Relates to foreclosure in general, so as to change the time for the delivery of a notice of the initiation of foreclosure proceedings; provides, under certain circumstances, for an opportunity, prior to foreclosure, for a debtor to cure a foreclosure and bring the debt current by making all past due payments along with any late fees and charges.
Relates to foreclosure generally, so as to allow for the right of redemption of foreclosed mortgages under certain circumstances; provides for certain information to be included in the advertisements of certain foreclosure sales.
Prevents the conditioning of a sale of a foreclosed home upon the buyer's purchase of title insurance from a particular insurer or upon the buyer's purchase of escrow services from a particular buyer.
Amends provisions of the Official Code of Georgia Annotated relating to mortgages, foreclosures, and evictions; amends Chapter 6A of Title 7 of the Official Code of Georgia Annotated, relating to the "Georgia Fair Lending Act," so as to provide for definitions; provides for limitations on home loans; provides for limitations on high-cost home loans; amends Code §15-6-77 of the Official Code of Georgia Annotated, relating to fees to be collected by clerks of the superior courts, so as to provide for fees for filing documents and other instruments pertaining to a deed under power more than 30 days following the exercise of a power of sale in a mortgage, security deed, or other lien contract; amends Code §44-7-55 of the Official Code of Georgia Annotated, relating to the writ of possession, so as to provide that a tenant with a valid lease can stay in a foreclosed property for 60 days; amends Article 7 of Chapter 14 of Title 44 of the Official Code of Georgia Annotated, relating to foreclosure on mortgages, so as to provide for examples of when an instrument of conveyance will be an equitable mortgage; provides for recording of documents relating to sales under power; provides for notice to the occupant of the property of an impending sale of the property.
Provides a vehicle to allow more time to a defaulting mortgagor facing foreclosure.
Requires the mortgagee in an alternate power of sale foreclosure procedure to attach a copy of the original, signed mortgage agreement and any amendments thereto to the notice of default.
To conference committee 4/8/10
Requires foreclosing lenders to notify their mortgagors about mortgage counseling. Makes foreclosure void if notice is not provided.
Requires that lenders who initiate foreclosure proceedings against a condominium property or have a foreclosure proceeding pending against a condominium property timely pay all fees and taxes associated with the property during foreclosure proceedings. Requires that lenders begin payment six months after initiation of foreclosure proceedings.
Requires distressed property consultants and distressed property purchasers to register with the department of commerce and consumer affairs prior to doing business in the state. Clarifies that attorneys licensed in the state are not distressed property consultants.
Allows a homeowner to force a court supervised foreclosure if a non-judicial foreclosure is successfully appealed due to an unfair sales price.
Signed by governor 6/3/10, Act 162
Establishes a task force to analyze factors affecting mortgage foreclosures in Hawaii, including relevant laws.
Signed by governor 4/19/10, Act 36
Prohibits a foreclosing mortgagee or mortgagee who acquires a property from requiring that a buyer purchase title insurance or escrow services from any particular vendor as a condition of sale.
S.C.R. 170
Requests the provision of mortgage foreclosure mediation services to Hawaii's homeowners and lenders.
Requests a report on the feasibility of establishing a foreclosure mitigation counseling program to assist Hawaii's homeowners.
Signed by governor 6/10/10, Public Act 96-0921
Creates the Illinois Homeowner's Emergency Assistance Program Act. Contains provisions concerning the powers and duties of the Illinois Housing Development Authority with respect to the Act, the eligibility of a homeowner for assistance under the Act, the assistance payments for eligible homeowners, and funding for the program. Provides that the Act is repealed on January 1, 2011.
Passed House 4/3/09
Amends the Code of Civil Procedure by adding an Article that may be cited as the Mortgage Foreclosure Prevention Law of 2009. Provides that an eligible borrower has a right to defer a judicial sale for a specified period by providing an affidavit to the foreclosing lender. When the deferment period ends or the deferment is lost, a lender may schedule a sale by publishing a specified newspaper notice and serving a copy on those on the premises, four weeks before the sale. Provides a formula to set the borrower's monthly payment. Provides that a borrower loses the right to deferment if he or she ceases to reside on the premises. Provides for mortgage foreclosure counselors. Provides that a foreclosing lender and a borrower must negotiate in good faith. Provides that a borrower may dispute a deferment cancellation through arbitration. Provides that lenders shall send to borrowers a mandated notice about deferment. Provides that a lender who acts in bad faith or recklessly in violation of these provisions is liable to a person injured for actual damages, statutory damages up to $25,000, punitive damages, costs, and attorney's fees. Makes other changes.
Amends the Code of Civil Procedure. Provides that a mortgagor and mortgagee may agree on a termination of the mortgagor's interest in the mortgaged real estate after a default by a mortgagor provided that the mortgagee must prove by clear and convincing documentary evidence, other than by oral testimony or affidavit, that the mortgagee is the actual mortgagee legally entitled to receive a deed in lieu of foreclosure (instead of after a default by a mortgagor). Provides that in a foreclosure action, the mortgagee must prove by clear and convincing documentary evidence, other than by oral testimony or affidavit, that the mortgagee is the actual mortgagee legally entitled to bring the action.
Amends the Property Tax Code. Provides that, if the average market value of residential property fell by more than seven percent in the previous calendar year, then the Department of Revenue shall include foreclosure sales and short sales in its sales ratio studies.
Amends the Illinois Municipal Code. Provides that if foreclosure proceedings for a residential building have been commenced, it is the responsibility of the mortgagee, judgment creditor, or other lien holder to adequately heat the residential building to prevent frozen pipes.
Amendatory veto by governor 8/13/10
Amends the Mortgage Foreclosure Article of the Code of Civil Procedure. Provides that special matters may be included in a judgment of foreclosure if sought in the complaint or by separate motion brought by a party (rather than if sought by a party in the complaint or by separate motion). Provides that special matters may include an official or other person who shall be the officer to conduct the sale (rather than an official or other person who shall be the officer to conduct the sale other than the one customarily designated by the court). Makes changes in provisions concerning persons authorized to conduct a judicial sale. Provides that a copy of the notice of foreclosure of residential real estate shall be sent to the municipality or county in which the property is located by first class mail (instead of sent pursuant to the Code of Civil Procedure). Provides that the mortgagee, judgment creditor, or other lien holder shall furnish the confirmation order to the last-known insurer of a residential building in writing by first-class mail or electronically within 10 business days after the mortgagee, judgment creditor, or lien holder becomes the mortgagee-in-possession. Provides that the failure to send or receive a copy of the order does not affect the rights of the mortgagee or purchaser or affect the foreclosure proceedings.
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.
To House for concurrence 12/1/10
Amends the Code of Civil Procedure. Provides that a copy of the notice of foreclosure of residential real estate shall be sent to the municipality or county in which the property is located by first class mail (instead of sent pursuant to the Code of Civil Procedure). Provides that the mortgagee, judgment creditor, or other lien holder shall furnish the confirmation order to the last-known insurer of a residential building in writing by first-class mail after the mortgagee, judgment creditor, or lien holder becomes the mortgagee-in-possession. Provides that the failure to send or receive a copy of the order does not affect the rights of the mortgagee or purchaser or affect the foreclosure proceedings.
Amends the Code of Civil Procedure. Provides that the notice of a judicial sale of a unit of a common interest community must contain a statement concerning liability for common expenses. Amends the Condominium Property Act to provide that a purchaser of such a unit at a judicial foreclosure sale or who acquires title from a mortgagee has the duty to pay certain proportionate common expenses. Contains other provisions.
Amends the Illinois Insurance Code to provide that the mortgagee, judgment creditor, or other lien holder shall notify the last-known insurer of a residential building in writing by first-class mail or electronically within 10 business days after the mortgagee, judgment creditor, or lien holder becomes the mortgagee-in-possession.
Amends the Code of Civil Procedure. Provides that the court shall set aside a judicial sale, prior to the sale confirmation, if the mortgagor proves that the mortgagor applied for assistance under the Making Home Affordable Program established by the Department of the Treasury pursuant to federal law, and the mortgaged real estate was sold in material violation of the program's judicial sale requirements. These provisions become inoperative on January 1, 2013, for all actions filed after December 31, 2012, as to which the mortgagor did not apply for assistance under the program by December 31, 2012.
Amends the Code of Civil Procedure. Provides that no mortgagee, assignee of a mortgagee, mortgagee-in-possession, (instead of mortgagee-in-possession) receiver or holder of a certificate of sale or deed, or purchaser who fails to file a supplemental petition under provisions of the Illinois Mortgage Foreclosure Law concerning possession during the pendency of a mortgage foreclosure shall file a forcible entry and detainer action against an occupant of the mortgaged real estate until 90 days after a notice of intent to file such action has been properly served upon the occupant.
Creates the Foreclosed Home Receiver License Act. Provides for the licensure of a receiver of a home foreclosed on by a mortgagee that is a bank. Provides that upon possession of a foreclosed home, a licensee under the Act shall hold onto and preserve all remaining personal property of the mortgagor or former occupant, with certain exceptions, for at least 30 days or until the mortgagor or occupant releases his or her claim to the property in writing, whichever occurs sooner. Provides that the receiver must post a public notice containing certain specified information related to how the personal property may be reclaimed by the mortgagor or former occupant. Provides that the Department of Financial and Professional Regulation shall adopt rules to administer the provisions of the Act. Sets forth powers and duties of the Department, licensure requirements, grounds for discipline, civil and criminal penalties for violation of the Act, and administrative procedure. Includes provisions concerning exemption from the Act. Amends the Regulatory Sunset Act to set a repeal date of January 1, 2021 for the new Act. Amends the Code of Civil Procedure to make corresponding changes in provisions concerning the appointment of receivers.
Amends the Code of Civil Procedure. Provides that with respect to residential real estate, at the time of filing a foreclosure complaint the plaintiff must pay the clerk of the court of the county that the mortgaged real estate is located, a fee for deposit into the Foreclosure Relief Fund, a special income-earning fund that is created in the state treasury. Provides that the fee that the plaintiff must pay is calculated at the rate of $2.50 for each $500 of value or fraction of $500 stated and sought by the plaintiff in the foreclosure complaint. Provides that all moneys deposited into the fund together with all accumulated undistributed income thereon shall be held as a special fund in the state treasury and the Foreclosure Relief Fund shall be used solely for the purpose of providing grants to units of local government and not-for-profit organizations, including, but not limited to, not-for-profit housing authorities and community organizations to clean up residential real estate that has been abandoned, neglected, or otherwise in need of additional care following foreclosure. Provides that the grant program shall be administered by the Illinois Housing Development Authority, which shall adopt rules for the administration, operation, and maintenance of the grant program. Provides that all fees paid by the plaintiff to the clerk of the court as provided in a specified manner, shall be disbursed within 60 days after receipt by the clerk of the court in a specified manner. Provides that no later than March 1 of each year, the clerk of the court shall submit a report of funds remitted during the preceding year based upon independent verification of fees collected. Amends the State Finance Act to create the Foreclosure Relief Fund as a special fund in the state treasury.
Amends the Property Tax Code. In provisions concerning the assessment of subdivisions, provides that the subsequent sale or transfer of the property by a party who acquired title pursuant to (i) a transfer as a mortgage holder, (ii) a mortgage foreclosure proceeding, (iii) a consent judgment or (iv) a transfer in lieu of foreclosure, shall not disqualify the property from being assessed based on the estimated price the property would bring at a fair voluntary sale for use by the buyer for the same purposes for which the property was used when last assessed prior to its platting (or, until January 1, 2011, assessed based on the assessed value assigned to the property when last assessed prior to its last transfer or conveyance) unless (A) a habitable structure is completed on the lot or (B) the lot is used for business, commercial, or residential purpose or (C) until the initial sale of any platted lot.
Amends the Code of Civil Procedure. Provides that as a condition precedent to initiating foreclosure on residential real estate, a plaintiff shall comply with the requirements of any applicable federal, State, local, or contractual loss mitigation program, and if no program results in a modification of the mortgage, the plaintiff shall review the mortgage under the other programs utilized by the plaintiff. Provides that each affidavit filed in a foreclosure proceeding must include a detailed description of the affiant's claimed personal knowledge. Provides that if a note that is required to be attached to the foreclosure complaint is missing, the moving party must file a detailed affidavit about the efforts to locate the note and the note's terms and riders. Provides that each foreclosure complaint shall include a loss mitigation affidavit describing what steps, in any, were taken by the plaintiff to assess the mortgage loan's eligibility for modification under designated federal programs. Provides that a foreclosure judgment shall include a finding by the court that the plaintiff complied with applicable federal, State, or local loss mitigation requirements, or that there are no such applicable requirements. Provides that if the plaintiff has not complied with such a program that the proceedings shall be stayed until the court determines that the plaintiff has complied.
Amends the Code of Civil Procedure. Provides that a foreclosure complaint shall include a statement of the capacity in which the plaintiff brings the foreclosure such as legal holder of the indebtedness, pledgee, agent, trustee under a trust deed or otherwise, along with copies of documents upon which the plaintiff relies and which show the plaintiff to be the legal holder of the indebtedness, a pledgee, an agent, the trustee under a trust deed or otherwise (instead of a statement of the capacity in which the plaintiff brings the foreclosure and indicates whether plaintiff is the legal holder of the indebtedness, a pledgee, an agent, the trustee under a trust deed or otherwise). Provides that a foreclosure judgment shall include: allegations of fact in the complaint that are not denied by the verified answer or counterclaim (instead of not denied by the verified answer or counterclaim or where the defendant states in an affidavit that he or she has no knowledge sufficient to form a belief) are sufficient evidence thereof; the last date for redemption; court rulings as to each request for relief; tangible evidence of who holds the indebtedness, the indebtedness, and the mortgage foreclosed (instead of the indebtedness and the mortgage foreclosed) shall be exhibited to and filed with the court; and if the plaintiff is not the original mortgagee, specific findings of fact concerning the plaintiff's capacity to bring the foreclosure action and a determination of whether this capacity legally entitles the plaintiff to bring the action (instead of a foreclosure judgment shall include the last date for redemption and court rulings as to each request for relief).
Amends the Code of Civil Procedure. Provides that a foreclosure complaint shall also include copies of documents upon which the plaintiff relies and which show the plaintiff to be the legal holder of the indebtedness, a pledgee, an agent, the trustee under a trust deed or otherwise. Provides that for a foreclosure judgment, evidence to support the complaint's allegations shall be taken in open court except allegations of fact in the complaint that are not denied by the verified answer or counterclaim (instead of not denied by the verified answer or counterclaim or where the defendant states in an affidavit that he or she has no knowledge sufficient to form a belief). Provides that the court may (instead of shall) enter a judgment upon receipt of an affidavit stating the amount due the mortgagee. Provides that a foreclosure judgment shall also state, if the plaintiff is not the original mortgagee, specific findings of fact concerning the plaintiff's capacity to bring the foreclosure action and a determination of whether this capacity legally entitles the plaintiff to bring the action. Provides that evidence of the identity of the legal holder of the indebtedness and the indebtedness itself (instead of indebtedness) shall be marked as exhibits.
Amends the Property Tax Code. Provides that boards of review and the Property Tax Appeal Board shall consider compulsory sales of comparable properties for the purpose of revising and correcting assessments. Provides that the Department of Revenue shall include foreclosure sales and short sales in its sales ratio studies. Amends the Real Estate Transfer Tax Law in the Property Tax Code to provide that transfer declarations shall include information concerning whether the transfer is pursuant to compulsory sale. Provides that boards of review shall consider compulsory sales in their equalization process. Defines "compulsory sale" as a short sale or the first sale of residential property to occur after a foreclosure proceeding.
Amends the Code of Civil Procedure. In Illinois Mortgage Foreclosure Law provisions prohibiting a mortgagee-in-possession, receiver or holder of a certificate of sale or deed, or purchaser who fails to file a supplemental petition for possession during the pendency of a mortgage foreclosure from filing a forcible entry and detainer action against an occupant of mortgaged real estate until 90 days after a notice of intent to file such action has been properly served upon the occupant, adds language providing that the prohibition also applies to a mortgagee or an assignee of a mortgagee.
Creates the Mortgage Foreclosure Prevention Volunteer Corps Act. Contains only a short title provision.
Amends the Illinois Housing Development Act to authorize the Illinois Housing Authority to establish and administer a foreclosure prevention counseling program using moneys in the Foreclosure Prevention Counseling Fund, appropriated for that purpose, to make grants to HUD-certified housing counseling agencies to support pre-purchase and post-purchase home ownership education and foreclosure prevention counseling. Amends the State Finance Act to create the Foreclosure Prevention Counseling Fund. Provides that 75 percent of the moneys in this Fund shall be used for housing counseling outside Chicago and 25% of the moneys shall be used for such counseling in Chicago.
Signed by governor 8/2/10, Public Act 96-1419
Amends the Mortgage Foreclosure Article of the Code of Civil Procedure. Provides that specified procedures and counseling requirements that are described as providing homeowner protection in the foreclosure process are repealed three years after the effective date of the amendatory Act (instead of April 6, 2011).
Amends the Code of Civil Procedure. Provides that a court may order that a court file relating to a forcible entry and detainer action brought against a tenant who would have lawful possession of the premises but for the foreclosure on the property shall be sealed pursuant to specified provisions of the Mortgage Foreclosure Article of the Code of Civil Procedure.
Amends the Code of Civil Procedure. Provides for a moratorium stay on all pending residential real estate mortgage foreclosures filed by lending institutions, subject to a review by the Attorney General of the practices and procedures of each lending institution to determine whether the lending institution properly uses genuine, accurate, properly executed, and appropriate documents that are properly processed, include full and accurate accountings, and are in full compliance with applicable federal and State laws and regulations. Provides definitions. Creates within the Office of the Attorney General, the Office for the Monitoring of Residential Real Estate Mortgage Foreclosures headed up by the Mortgage Foreclosure Monitor, appointed by the Attorney General. Provides that the Attorney General will have the power to: administer this program; issue reports about lending institutions; make recommendations to the General Assembly; obtain necessary documents, subpoena documents, and engage in related activities. Provides that any delay caused by this process shall toll any statutory or contractual time requirements.
S.R. 1049
Urges Congress to implement a national mortgage foreclosure moratorium until the federal mortgage foreclosure programs are reformed to help affected homeowners.
Signed by governor 3/17/10, Public Law 68
Combines two separate Indiana Code provisions concerning the presuit notice required in residential foreclosure proceedings into one section. Repeals one of the provisions being combined. Provides that the presuit notice must inform the debtor that if the creditor obtains a foreclosure judgment, the debtor has a right to do the following before a sheriff's sale is conducted: (1) Appeal a finding of abandonment by a court. (2) Redeem the real estate from the judgment. (3) Retain possession of the property, subject to certain conditions. Provides that an enforcement authority that has issued an abatement order for a vacant or abandoned structure may under certain conditions file a praecipe for the sale of the property with the clerk of the county after 180 days have elapsed from the date a foreclosure judgment and decree is filed, if the party that is entitled to enforce the judgment has not itself filed a praecipe.
Requires a property insurer to provide certain notice of policy cancellation when insured residential property is the subject of a foreclosure action. Requires a creditor in a residential foreclosure action to send a copy of the complaint to the insurance company of record.
Requires that fees and funds accruing from the administration of the Indiana Securities Act (IC 23-19) and other statutes must be deposited in the home ownership education account. Abolishes the securities division enforcement account. Makes conforming amendments.
Amends the law concerning the disclosures that a credit services organization must provide to a buyer to reflect changes in the federal Fair Credit Reporting Act concerning the circumstances under which a consumer is entitled to a consumer report without charge from a consumer reporting agency. Moves the statute concerning mortgage rescue fraud from the Indiana Code title concerning trade regulation to the title concerning property. Makes conforming changes to cross-references. Combines two separate Indiana Code provisions concerning the presuit notice required in residential foreclosure proceedings into one section, and specifies that the notice shall be sent by certified mail. Specifies that the statute concerning mortgage rescue fraud applies only to a foreclosure proceeding concerning residential real property that is located in Indiana and to which a homeowner holds record title at the time the proceeding is initiated. Removes an incorrect cross-reference in the statute concerning real estate brokers and salespersons. Repeals the existing statute concerning mortgage rescue fraud.
Creates a new section of KRS Chapter 82, relating to cities, to require a creditor to register vacant residential property with the local government in which the property is located; creates penalty for failure to comply.
Authorizes political subdivisions to include redevelopment covenants as a condition to tax sales and certain lien foreclosures in order to ensure the redevelopment of the property by the purchaser.
L.D. 1707
Clarifies that the changes in the notice period for cure of defaults of mortgages made in Public Law 2009, chapter 402 apply to all residential mortgages. The bill applies the clarification retroactively to the date Public Law 2009, chapter 402 took effect.
Creates a rebuttable presumption that a foreclosure sale of certain residential real property is invalid if the sale is delayed beyond a certain time.
Defines "property of another" for purposes of the prohibition against malicious destruction of property; requires that specified notices sent to occupants of residential property in foreclosure contain a specified paragraph informing the occupants of the criminal sanctions for malicious destruction of property.
Establishes the Task Force to Study the Residential Property Foreclosure Process; provides for the membership of the task force and the designation of the chair; provides for the duties of the task force, including the duty to recommend legislative, regulatory, and judicial procedural changes to streamline the foreclosure process while protecting the interests of all parties; requires the task force to report to the governor and the General Assembly on or before December 1, 2011.
Requires an order to docket or complaint to foreclose on residential property to be accompanied by an additional filing fee, a specified final or preliminary loss mitigation affidavit, and, if applicable, a specified request for foreclosure mediation; alters the information required to be included in a specified notice form; requires the court to forward a request for foreclosure mediation to the Office of Administrative Hearings for scheduling.
Provides that an immediate successor in interest who has acquired legal title to residential property under a foreclosure shall assume the interest subject to the provision of a notice to vacate and the rights of a bona fide tenant; establishes the circumstances under which a lease or tenancy shall be considered bona fide; alters the contents of notices required to be sent to occupants of residential property in foreclosure.
Requires specified documents to accompany a notice of intent to foreclose a mortgage or deed of trust on residential property; requires an order to docket or a complaint to foreclose a mortgage or deed of trust on residential property to include payment of a $100 filing fee and be accompanied by either a final loss mitigation affidavit or a preliminary loss mitigation affidavit; alters the contents of a specified notice that must accompany an order to docket or complaint to foreclose.
Makes it lawful for a record owner of residential property that is being sold at a public foreclosure sale conducted by a court appointed trustee to use an electronic device to intercept, record, or use the contents of the oral communication of the trustee during the sale in order to preserve a record of the sale for specified purposes; and makes the Act prospective in application.
Limits specified recordation requirements for a mortgage, deed of trust, or other instrument securing a mortgage loan on residential property to owner-occupied residential property; limits specified foreclosure procedures for residential property to owner-occupied residential property.
Requires all payments or portions of payments made on a specified consumer loan during a grace period to be credited to principal and interest due on the scheduled payment; prohibits a late or delinquency charge from being charged on a specified consumer loan unless a scheduled payment is not paid in full during the grace period; alters the contents of a notice of intent to foreclose on residential property.
Establishes that the requirement for the payment of public taxes, assessments, and charges before property may be transferred on the assessment books or records does not apply to the payment of recordation taxes; clarifies that a purchaser of foreclosed residential property is not required to pay the recordation tax for an indemnity mortgage securing the property unless the purchaser is the grantor of the indemnity mortgage.
Requires the Department of Housing and Community Development in coordination with the Division of Banks, the Office of Consumer Affairs and Business Regulation, Massachusetts Housing Finance Agency, the Massachusetts Housing Partnership and the Community Economic Development Assistance Corporation to establish a bona fide apprentice training program for the rehabilitation of foreclosed properties purchased under the National Housing and Economic Recovery Act of 2008, Chapter 119 of the Acts of 2008 and Chapter 206 of the Acts of 2007 or any other program as described by the department. Said program shall be approved by the Division of Apprentice Training.
See H.B. 4595 4/8/10
Protects tenants in foreclosed properties from evictions.
Establishes a temporary moratorium on foreclosures in the Commonwealth.
Creates the Massachusetts Foreclosure Mediation Program.
Amends the foreclosure statute to require judicial foreclosure.
Stabilizes neighborhoods through the protection of tenants in foreclosed properties.
Provides protections for tenants living in foreclosed properties.
Imposes a moratorium on the foreclosure of predatory sub-prime mortgages in the city of Worcester.
Requires that banks and financial institutions that foreclose on properties shall ensure the proper upkeep and maintenance of such properties. Failure to maintain a property includes but is not limited to, permitting excessive foliage growth that diminishes the value of surrounding properties, failure to winterize a property, failing to take action to prevent trespassers or squatters from remaining on the property, failing to take action to prevent mosquito larva from growing in standing water, or failing to remove rubbish that may attract vermin. Cities and towns shall have the option to impose civil fines of up to $1,000 per day per violation for failure to maintain the property. Cities and towns that choose to impose fines and penalties pursuant to the bill to give notice of the claimed violation, including a description of conditions giving rise to the claim of violation, give the legal owner an opportunity to remedy the violation at least 14 days prior to imposing fines and penalties and allow the legal owner an opportunity to contest any fines and penalties imposed.
Requires any person, financial institution or business entity acquiring a foreclosed property under this chapter shall file with the city or town where the property is located a bond in the amount of 25 percent of the value of the property which shall be known as a Foreclosed Property Upkeep Bond. Any above described entity that purchases a foreclosed property and fails to maintain said property will be issued notification by the city or town. If the deficiency is within 14 days of notice by the city or town, the Bond will be forfeited to the city or town and the proceeds used to correct the deficiencies. Any unused portion of the foreclosure bond shall be kept by the city or town to insure future upkeep of the property. Once the full value of the bond is used in the upkeep of the foreclosed property the owner shall file another bond in the same amount within 10 days or have the property forfeited to the city or town under the same procedures governing tax sales.
Requires public viewing before auctioning housing units.
Stabilizes neighborhoods through the protection of tenants in foreclosed properties; provides for a right to cure defaults; provides for maintaining abandoned property; provides for negotiations upon alternatives to foreclosure.
Provides for tenant protections in foreclosed properties; provides for the right to cure defaults; provides for an abandoned property registry; provides for negotiations upon alternatives to foreclosure.
See S.B. 2355 4/1/10
Creates the Massachusetts Mortgage Resolution System.
Requires the Department of Housing and Community Development to establish a task force to review current practices by nonprofit organizations that purchase foreclosed properties and to recommend mechanisms requiring that a percentage of foreclosed properties purchased by nonprofit organizations using federal, state or local subsidies be reintroduced for homeownership.
Regulates the maintenance of vacant and foreclosing residential properties.
Provides tenant protections in foreclosed properties.
Requires tenant protections in foreclosed properties.
Provides procedural protections for homeowners facing foreclosure.
Requires judicial foreclosure.
Requires just cause for eviction and foreclosed properties for tenants.
Establishes a moratorium on foreclosures in the Commonwealth.
Establishes a foreclosure mediation program.
Stabilizes tenancies in foreclosed properties.
Requires commercially reasonable efforts to avoid foreclosure.
Requires residential mortgage lenders and landlords to offer provisions to allow a mortgagee or lessee to defer payments and extend a mortgage term or lease term for a period proportional to the length of deferment. This provision shall apply to a residential mortgagee or lessee who has an active application for long-term disability assistance.
See 2394 4/26/10
See S.B. 2407 4/29/10
Signed by governor 12/17/10, Public Act 303
Amends Chapter 32 of the Revised Judicature Act, which deals with the foreclosure of mortgages by advertisement, to allow a register of deeds to calculate the amount of money necessary to redeem a foreclosed property; this would apply only in counties with a population of more than 750,000 and less than 1,500,000. (This applies to Macomb and Oakland counties.)
Clarifies eligibility to claim principal residence exemption on certain homes in foreclosure.
Requires employee of mortgage holder to attend mediation.
Provides for a requirement for real estate firms to disclose all offers on foreclosed bank owned properties.
Requires a meeting between the lender and borrower before a foreclosure by advertisement.
Limits amount that a designee may charge to calculate payment required to redeem a foreclosed home.
Regards the power to foreclose mortgages by advertisement; prohibits if mortgage holder does not participate in help for hardest hit program.
Provides education and counseling for the people of this state who are facing the foreclosure or forfeiture of mortgages or land contracts of their homes; imposes a fee on the transfer of certain real property to provide for the education and counseling; requires the establishment of funds by the counties in this state.
Prohibits accepting bids on foreclosed properties from certain individuals.
Prohibits the power to foreclose mortgages by advertisement if the mortgage holder does not participate in the Help for Hardest Hit Program, and the foreclosing party has not executed an agreement to participate as a servicer in the program.
Modifies mortgage modification negotiation procedures; eliminates sunset.
H.F. 2604
S.F. 2242
Relates to economic development; allows a stay of mortgage foreclosure proceedings under certain conditions; landlord and tenant; provides rights to tenants of foreclosed property.
Relates to real property; provides for mediation prior to commencement of mortgage foreclosure proceedings on homestead property; creates a homestead-lender mediation account.
Relates to real estate; streamlines the process of connecting an owner facing a residential mortgage foreclosure with an authorized foreclosure prevention agency and with a person authorized to negotiate on behalf of the foreclosing lender.
Indefinitely postponed 3/29/10
Relates to landlord and tenant; modifies certain procedures relating to expungement; provides procedures relating to the charging and recovery of various fees; provides certain rights to tenants of foreclosed properties.
Amends notice requirements during foreclosure.
Indefinitely postponed 4/6/10
Makes a conforming change to provide for the right of the borrower to obtain a postponement of a foreclosure sale that has a 12-month redemption period, as is now available for a six-month redemption period.
Establishes a statute of limitations for actions to enforce notes secured by junior liens on foreclosed residential property.
Died in committee 2/2/10
Creates the Mississippi Foreclosure Rescue Business Act; expresses legislative findings and intent; defines certain terms; prohibits certain acts; requires written agreements regarding foreclosure-related rescue services; requires written agreements regarding foreclosure-related transactions; provides a rebuttable presumption regarding foreclosure-related transactions; provides penalties for violations of this act.
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.
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.
Provides a program for homeowner's emergency assistance administered by the Mississippi Home Corporation; authorizes the Mississippi Home Corporation to administer the program; provides for eligibility for such loans by notice and institution of foreclosure proceedings; prescribes eligibility requirements for assistance; provides for making of assistance payments to the mortgagee on behalf of the mortgagor; provides for agreements for repayment; provides for post-assistance counseling; creates the Homeowner's Emergency Mortgage Assistance Fund; authorizes appropriation into the fund to provide start-up costs.
Prohibits foreclosure on residential property unless the mortgagee or holder of the mortgage gives the mortgagor 90-days' written notice; prescribes the contents of the notice to foreclose; requires the mortgagee to notify the commissioner of Banking and Consumer Finance of the date of the foreclosure sale, the purchase price obtained at the sale, and a copy of the notice to foreclose; requires the commissioner of Banking and Consumer Finance to maintain a database of certain foreclosure activity information.
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 a real property within 30 days of a request or not less than 30 days prior to the start of any foreclosure proceedings. 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 proceedings 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 heirs or must file an affidavit of death with the recorder of deeds identifying himself or herself as an heir to entitle him or her to obtain the loan information. Any personal representative must be named in a will or appointed by the probate court.
No Regular 2010 Session
L.B. 732
Signed by governor 4/12/10
Changes provisions relating to certain forced sales of real property; provides that a master commissioner may, for any cause he or she deems expedient, postpone the sale of all or any portion of the real property from time to time until it is completed and, in every such case, notice of postponement shall be given by public declaration thereof by such master commissioner at the time and place last appointed for the sale; provides that a sheriff may act as a master commissioner.
Failed to pass House 2/17/10
Requires that foreclosure consultants be licensed either as a notary public or a justice of the peace.
Failed to pass Senate 3/24/10
Specifies what information shall be included in notice of sale of a mortgage.
Removes the requirement of payment to the homeowner within 90 days of resale of a foreclosed property.
This bill allows a municipality to require a creditor 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. The bill requires a creditor that serves a notice of intention to foreclose on a mortgage on residential property in this state pursuant to the “Fair Foreclosure Act,” P.L.1995, c.244 (C.2A:50-53 et seq.), to serve the public officer or municipal clerk of the municipality in which the property is located, with a copy of the notice at the same time that the creditor serves the notice on the owner of the property. The creditor shall include the full name and contact information of a person located within the state who is authorized to accept service on behalf of the creditor with the copy of the notice served on the public officer or municipal clerk. The bill also provides that if the residential property becomes vacant at any time after the creditor files the notice of intention to foreclose, but prior to vesting of title in any third party, and the municipality determines that the property is in violation of any applicable State or local housing code, the municipality may provide the creditor with notice of the violation, and may require the creditor to correct the violation. Further, the bill provides that a municipality that requires a creditor to correct a violation pursuant to this bill shall include a description of the conditions that gave rise to the violation with the notice of violation and shall provide a period of not less than 30 days for the creditor to remedy the violation. If the creditor fails to remedy the violation within that time period, the bill allows the municipality to impose penalties currently allowed for the violation of municipal ordinances pursuant to R.S. 40:49-5.
Passed Assembly 10/25/10
This bill, the "Foreclosure Rescue Fraud Prevention Act," requires foreclosure consultants and distressed property purchasers, who contract with owners of residential properties in financial distress, to adhere to certain practices in providing foreclosure prevention services to owners. The bill requires a foreclosure consultant to post a bond with the Division of Consumer Affairs prior to conducting any business in the state. In addition, the bill provides certain contract rights for owners of a financially distressed residential property, as defined in the bill, who contract with foreclosure consultants, including requirements that: (1) the contract for foreclosure consulting services must be in writing and must contain certain disclosures and notice requirements in 14-point boldface type; and (2) the owner has a right to cancel the foreclosure consulting contract at any time until after the foreclosure consultant has fully performed every service the consultant contracted to perform. The bill also prohibits certain practices by foreclosure consultants, including: (1) collecting any fee prior to the completion of all agreed upon services, unless compensation for partial performance is expressly agreed upon in the contract; and (2) collecting fees in excess of certain limits as described in the bill. In situations in which there is a distressed property conditional conveyance, whereby an owner transfers the distressed property to a distressed property purchaser, occupies the property, and retains an option to purchase the property back from the purchaser, or a distressed property conveyance, whereby an owner simply transfers the distressed property to a distressed property purchaser, the bill provides certain contract rights to owners, including requirements that: (1) the contract be in writing and include certain notices and disclosures in 14-point boldface type; and (2) the owner has a right to cancel the contract during certain periods as described in the bill. As to distressed property conditional conveyances, the bill places certain obligations on distressed property purchasers, including requirements to: (1) verify that the owner has a reasonable ability to pay for a subsequent conveyance of title back to the owner; (2) ensure that the owner is paid at least 82 percent of the property’s fair market value in consideration for the owner’s conveyance of title, or transfer of a beneficial interest through a trust, to the distressed property purchaser; and (3) provide to the owner, prior to a distressed property conditional conveyance, a disclosure statement that includes all costs the owner will incur in connection with the conveyance and any option for the owner to purchase the property back from the purchaser. As to distressed property conveyances, the bill places certain obligations on distressed property purchasers, including a requirement that the owner is paid at 82 percent of the property’s fair market value in consideration of the owner’s transfer of title to the distressed property purchaser. For a violation of the bill’s provisions, the bill provides for a civil penalty of not more than $10,000 for the first offense, and not more than $20,000 for the second and each subsequent offense, which penalty may be collected in a summary proceeding pursuant to the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.). The bill provides that any person who violates any provision of the bill is guilty of a crime of the third degree. A person who violates any provision of the bill in connection with a pattern of foreclosure rescue fraud or a conspiracy or endeavor to engage in a pattern of foreclosure rescue fraud is guilty of a crime of the second degree. The bill also provides that any distressed property conditional conveyance or distressed property conveyance involving the transfer of an interest in fee or a beneficial interest through a trust document, which is made in violation of any provision of the bill, is voidable and the transfer may be rescinded by the owner within two years of the date of the transfer and outlines certain restrictions and rights of owners of such properties. In addition, the bill provides that an owner or a municipal tax lien holder of interest in a distressed property on behalf of an owner, may bring an action in Superior Court against a foreclosure consultant or a distressed property purchaser for any violation of the bill’s provisions, for treble damages, attorney’s fees, costs of suit and appropriate equitable relief. If an owner or municipal tax lien holder commences such an action, the party may: (1) cause a notice of lis pendens to be filed in the office of the county clerk in the county in which the property is located, pursuant to N.J.S.2A:15-6 et seq.; and (2) introduce or provide as evidence in the action, any contemporaneous oral agreements or representations made to the owner by any party to a foreclosure consultant contract or distressed property conveyance contract signed by the owner. Finally, the bill provides that the director of the Division of Consumer Affairs, within the Department of Law and Public Safety, in consultation with the commissioner of Banking and Insurance, shall enforce the provisions of the bill, and may promulgate regulations necessary to effectuate the purposes of the bill.
This bill amends the “Fair Foreclosure Act,” P.L.1995, c.244 (C.2A:50-53 et seq.), to require a uniform procedure for each sheriff’s office in the state to provide notices to debtors and all parties named as defendants in the writ of execution as to surpluses from the sale of foreclosed properties. The bill requires notices to debtors and all parties named as defendants in the writ of execution, both prior to the mortgage foreclosure sale and after the deposit of any surplus into Superior Court. Specifically, the bill requires the sheriff’s office, no less than two weeks prior to the date of a mortgage foreclosure sale, to hand deliver or send written notice by registered or certified mail, return receipt requested, to their last known addresses, to the debtor and all parties named as defendants in the writ of execution, informing them that: (1) a foreclosure judgment is entered in relation to the foreclosed property identified in the notice and a sheriff’s sale of the property is scheduled for the date set forth in the notice; (2) the sheriff’s sale of the property may result in a surplus that the debtor and all parties named as defendants in the writ of execution may have a right to claim; (3) the debtor and all parties named as defendants in the writ of execution may contact the sheriff’s office after the sale to determine if there is a surplus; and (4) if a surplus results from the sale, the debtor and all parties named as defendants in the writ of execution may apply to the Superior Court of New Jersey to assert a claim for all or a portion of the surplus. The bill also requires that if a surplus results from the foreclosure of a mortgage, the sheriff’s office must, within two weeks of the date of the deposit of the surplus with the Superior Court of New Jersey, hand deliver or send written notice by registered or certified mail, return receipt requested, to their last known addresses, to the debtor and all parties named as defendants in the writ of execution, informing them that: (1) the sale has resulted in a surplus that the debtor and all parties named as defendants in the writ of execution may have a right to claim; and (2) the debtor and all parties named as defendants in the writ of execution may contact the sheriff’s office to determine the amount of the surplus and may apply to the court to assert a claim for all or a portion of the surplus. The bill also provides that the cost of providing the notices would be paid for or reimbursed by the foreclosing plaintiff.
This bill, titled the “Residential Distressed Property Leaseback Act,” intends to regulate those transactions in which a distressed homeowner, facing a foreclosure action, conveys property or an interest in title to the property to another party, a “distressed property buyer,” with the intention of residing at the property as a tenant; and in some cases, possessing a prearranged opportunity to purchase back the property from the distressed property buyer. The bill applies to residential real property in this state, consisting of one to four dwelling units, at least one of which is occupied by the distressed homeowner as a primary residence. Any such distressed property conveyance shall be in writing, as well as properly notarized by a notary public at the time the distressed homeowner signs the agreement. This agreement shall include a seven-day right of cancellation by any party, which shall be effectuated in writing, sent by certified mail, informing the recipient of the decision to cancel the agreement. The purchase price or other consideration provided for the property that is the subject of the conveyance shall be the greater of: (1) at least 82 percent of the current appraised fair market value of the property as determined by a real estate appraiser licensed or certified pursuant to the “Real Estate Appraisers Act,” P.L.1991, c.68 (C.45:14F-1 et al.); or (2) at least the amount necessary to satisfy any lien or encumbrance upon the property including, but not limited to, mortgage principal, mortgage interest, mortgage arrears and tax arrears, unless the conveyance agreement involves a short sale, in which the purchase price or other consideration for the conveyance is less than the amount a person is owed under a lien or encumbrance on the property, but that person agrees to accept the lesser amount resulting from the conveyance and forgive any unpaid balance remaining on the lien or encumbrance. As a condition of the settlement of the distressed property conveyance, a residential lease agreement shall be executed for the same property between the distressed property buyer and distressed homeowner, as former owner of the property, unless the conveyance agreement involves a short sale as described above. As with the conveyance agreement, the residential lease agreement shall be in writing, and notarized by a notary public at the time the former homeowner, who will reside at the property as a tenant, signs the agreement. The monthly rental obligation of the former distressed homeowner as a tenant set forth in the residential lease agreement shall not exceed 31 percent of his gross monthly income at the time of executing the agreement, determined as follows: (1) the average of salary or wages for the three most recent calendar months, as evidenced by an employer provided paycheck, pay stub, or other similar proof of compensation; or (2) the average of the bank deposits for compensation for work, for the three most recent calendar months, if he is self-employed. This obligation may not be declared due more than 30 days immediately preceding the month during which the former distressed homeowner as a tenant under the agreement shall reside at the property. Additionally, the residential lease agreement shall comply with any state law applicable to residential real property in this state consisting of one to four dwelling units. As an option accompanying the settlement of the conveyance agreement and an executed residential lease agreement, an option to purchase agreement may be executed between the distressed property buyer and distressed homeowner, as former owner of the property, permitting the distressed homeowner the exclusive, irrevocable right, as a tenant-buyer, to purchase back the property from the distressed property buyer. The terms and conditions of the option to purchase agreement shall be contingent upon the tenant-buyer’s fulfillment of all obligations under the residential lease agreement. The failure to fulfill any obligation under the residential lease agreement shall render the option to purchase agreement voidable by the distressed property buyer. The option to purchase agreement, as with the conveyance agreement and residential lease agreement, shall be in writing, and notarized by a notary public at the time the former homeowner, who will reside at the property as a tenant-buyer pursuant to the executed residential lease agreement and option to purchase agreement, signs the latter agreement. The option to purchase agreement shall provide for a length of time of at least three years within which the former distressed homeowner as tenant-buyer may exercise his exclusive, irrevocable right to purchase back the property from the distressed property buyer. The agreement shall contain provisions concerning any fee or other consideration provided by the tenant-buyer as consideration for the agreement, which shall not exceed 3.5 percent of the purchase price or other consideration for the property, as well as provisions concerning the amount of money to be provided, in monthly installments in excess of the monthly rental obligation, and credited toward the purchase of the property. With respect to the amount of any fee or other consideration provided as consideration for the option to purchase agreement: (1) the entire fee or other consideration shall be provided by the tenant-buyer at the time of the execution of the agreement; (2) the distressed property buyer may declare some or all of the fee or other consideration to be non-refundable, regardless of whether the tenant-buyer exercises his right to purchase back the property from the distressed property buyer pursuant to the option to purchase agreement, or declare that some or all of the fee or other consideration shall be credited toward the purchase of the property, if the tenant-buyer does exercise his right to purchase back the property, so long as this declaration is agreed to by the tenant-buyer and expressly stated in the agreement; and (3) the fee or other consideration provided the distressed property buyer shall not constitute an equitable ownership interest in the property. With respect to any money provided as a monthly credit towards the purchase of the property: (1) the distressed property buyer may declare some or all of the money to be non-refundable, if the tenant-buyer does not exercise his right to purchase back the property from the distressed property buyer pursuant to the option to purchase agreement, so long as this declaration is agreed to by the tenant-buyer and expressly stated in the agreement; and (2) the money provided to the distressed property buyer shall not constitute an equitable ownership interest in the property. If the former distressed homeowner as a tenant-buyer exercises his right to purchase back the property from the distressed property buyer pursuant to the option to purchase agreement, any amount still owed toward the purchase price or other consideration on the property, as set forth in the agreement, following the application of any of the credit toward the purchase, shall be the sole responsibility of the tenant-buyer. A distressed homeowner or distressed property buyer may bring an action in a court of competent jurisdiction for legal and equitable relief against the other party for failing to comply with the provisions of the bill, or if the other party violates any of the contract provisions set forth in any written agreement for a distressed property conveyance, residential lease agreement, or option to purchase agreement between the parties. The relief sought by the distressed homeowner or distressed property buyer may include enforcement or rescission of any agreement, damages, including consequential damages, and restitution. In addition, a distressed property buyer, in accordance with N.J.S.2A:18-51 et seq. and any other applicable state eviction law, may initiate an eviction action against a distressed homeowner as a tenant under a residential lease agreement, for failure to comply with the provisions of that agreement.
This bill requires that in the event a creditor obtains a judgment for foreclosure on a residential property that contains an affordable housing deed restriction, the deed restriction is not extinguished as a result of the foreclosure. The bill also amends foreclosure laws to require notice be given to the municipal clerk and the commissioner of Community Affairs whenever a debtor is given notice that a foreclosure is pending on residential property that is a unit of affordable housing subject to affordability controls. The foreclosing lender is also required to furnish the debtor with the address and phone number of the municipal affordable housing manager and the New Jersey Housing and Mortgage Finance Agency. The bill removes the ability of a foreclosing lender to use alternative methods of foreclosure not requiring a public sale when the housing unit involved is subject to affordability controls.
This bill establishes a Foreclosure Prevention and Neighborhood Stabilization Trust Fund in the Department of Community Affairs. Money allocated to the fund will be utilized for foreclosure prevention activities, such as legal services to low and moderate income homeowners in danger of losing their homes to foreclosure, mediation services, and training for non-governmental groups who assist homeowners in addressing the foreclosure process. The fund will be financed through a temporary $800 surcharge placed on each foreclosure complaint filed in the state. The surcharge will expire five years after the effective date of this bill, or when the number of foreclosure complaint filed Statewide is less than 20,000, whichever occurs first. The Department of Community Affairs shall provide up to $500,000 from the fund to train qualified vendors to provide training to local governments and non-profit entities undertaking neighborhood stabilization efforts. The Department may utilize $500,000 in the first year of the fund, and $300,000 each year thereafter, for the purpose of collecting and disseminating foreclosure data. Following these disbursements from the fund, the next $10 million collected during the fiscal year shall be allocated to qualified non-profit entities for the purpose of maintaining or expanding their foreclosure prevention programs. Entities receiving these funds shall issue quarterly reports detailing the success of their foreclosure prevention programs. Any funds disbursed in excess of $10 million shall be provided to local governments, public authorities, or non-profit community development or housing organizations to mitigate the negative secondary effects of foreclosures in residential neighborhoods. These funds may be used to purchase, repair, or demolish vacant properties on which a notice of foreclosure has been served. This legislation requires a municipality that utilizes money from the fund for code enforcement or nuisance abatement purposes to make a diligent effort to recover the expended funds from the property owner or the creditor seeking to foreclose on the property. The bill also makes technical changes to the "Mortgage Stabilization and Relief Act" and transfers some of the reporting requirements required by that law from the Department of Banking and Insurance to the Department of Community Affairs.
This bill amends current law to provide that an individual who takes title to a property having a residential tenant, through foreclosure, must permit the tenant to remain in the property for at 90 days prior to filing a complaint for eviction. Current law allows for the removal of a tenant in the event the owner of the property seeks to personally occupy the residence or seeks to convert the residence to a nonresidential use. Under the bill, a landlord seeking to remove a tenant on those grounds would be required to permit the tenant to remain in the property for 90 days, provided the tenant continues to pay all rent due and owing pursuant to the lease with the prior owner.
This bill requires that an owner who takes title to a residential property through either a sheriff’s sale or a deed in lieu of foreclosure must provide the municipality where the property is located with the owner’s contact information within three business days. If the owner does not reside in New Jersey, then the owner shall designate a representative who is authorized to accept service of process on behalf of the owner and provide the representative’s contact information to the municipality. The sponsor notes that the recent foreclosure crisis has resulted in a substantial increase in the number of abandon residential properties throughout the state. The vacant properties drain municipal coffers by lowering the value of surrounding homes, attracting criminal elements, and at times require the municipality to perform routine maintenance which should be the responsibility of the property owner. This bill would ensure that the individual or entity which owns the property can be contacted by the municipality, and if necessary issued a summons to appear in municipal court for violations of any applicable municipal code provisions.
A.R. 14
This Assembly Resolution constitutes the Financial Institutions and Insurance Committee as a special committee to investigate the business practices of foreclosure consultants, the impact that these practices have had on foreclosure rates, the ability of New Jersey residents who retain foreclosure consultants to preserve the benefit of the equity in their homes, and whether and to what extent foreclosure consultants have acted improperly or unethically in conducting foreclosure rescue practices in the state. Upon passage of this resolution, the committee would have the power to subpoena witnesses and documents pursuant to Chapter 13 of Title 52 of the Revised Statutes.
The purpose of this bill is to make the $40 million appropriated to the Mortgage Stabilization Program and the HARP programs available for other programs that are currently assisting homeowners.
This bill, referred to as the “Foreclosure Consulting and Anti-Fraud Act,” expands and clarifies the existing scope and provisions of P.L.1979, c.16 (C.17:16G-1 et seq.), concerning debt adjustment and credit counseling activities, and expressly incorporates certain foreclosure consulting practices therein. Under the bill, the definition of “debt adjuster” is altered, to clarify that debt adjusters are not limited to only payment-altering activities, but may act or offer to act for the purpose of “paying off” the terms of any debt. The definition of “debt adjuster” is further altered to incorporate a new exception to this definition, applicable to a municipality or third party who obtains and acts upon a municipal lien in accordance with the procedures of the “tax sale law,” R.S.54:5-1 et seq. This exception is intended to insure that the bill does not inadvertently interfere in the regular tax sales conducted by such parties based upon municipal liens on properties. The bill clarifies that under existing law, foreclosure consultants who, directly or indirectly, solicit, offer to perform, or perform debt adjustment or credit counseling activities for property owners facing foreclosure with respect to such owners’ ability to retain ownership or possession of their property, are required to be licensed in this state as debt adjusters. The bill contains several exceptions from this licensing requirement, including U.S. Housing and Urban Development (HUD) Certified Housing Counseling Agencies (along with other authorized agents of HUD), and mortgagees approved by HUD, plus any financial institutions, subsidiaries, or affiliates, and any residential mortgage lenders or brokers licensed pursuant to the “New Jersey Residential Mortgage Lending Act,” sections 1 through 39 of P.L.2009, c.53 (C.17:11C-51 through C.17:11C-89), while engaged in the business of such approved mortgagees. The bill also includes “distressed property purchasers” as among those who must be licensed as debt adjusters under the law. A distressed property purchaser is anyone who acquires an interest in fee or a beneficial interest through a trust document in a distressed property, while allowing the debtor-owner to possess, occupy, or retain a leasehold interest or any present or future interest in fee in the property, or anyone involved in a joint venture or enterprise involving a distressed property conveyance. The bill provides the commissioner of Banking and Insurance with additional regulatory authority to oversee foreclosure consulting activities as well as other debt adjustment and credit counseling activities in this state. Such regulatory authority includes: permitting the commissioner to establish licensing requirements for any agent, officer, or employee of a debt adjuster, or any category of agent, officer, or employee, which may include disqualifications based upon standards of good moral character; and permitting the commissioner, as part of any licensing application, to require the applicant, or any category of applicants, to consent to a criminal history record background check, and any additional background check as deemed appropriate. While the commissioner is already authorized to request an annual report from any debt adjuster concerning that adjuster’s activities conducted in the preceding calendar year, the bill emphasizes that the commissioner may also collect information from a debt adjuster encompassing only one or more particular activities, such as those activities primarily performed with respect to foreclosure consulting. The bill, concerning penalties for violations of the applicable debt adjustment and credit counseling law, would permit any person to bring an action for punitive damages, as well as receive attorney’s fees and costs of suit. Additionally, the bill clarifies the law’s penalty provisions by emphasizing that the commissioner’s existing authority to enjoin any licensed debt adjuster and “any other person concerned or in any way participating in” a violation, includes, with respect to foreclosure consulting activities, any residential mortgage lender, residential mortgage broker, or other licensee pursuant to the “New Jersey Residential Mortgage Lending Act,” sections 1 through 39 of P.L.2009, c.53 (C.17:11C-51 through C.17:11C-89), any real estate broker or other licensee pursuant to R.S.45:15-1 et seq., or any real estate appraiser licensed or certified pursuant to the "Real Estate Appraisers Act," P.L.1991, c.68 (C.45:14F-1 et seq.).
This bill provides for a cause of action against creditors who are in the process of foreclosing on a residential property that is vacant if the property falls into disrepair. In the event a property to which a notice of intention to foreclose has been sent and the resident has vacated the property, the appropriate municipal code enforcement official may issue a citation against the creditor if the condition of the property is found to be in violation of a municipal ordinance, rule, or regulation. The court may impose a fine on the creditor of up to $2,500 for each day the property is deemed to have been in violation. The bill provides that least 20 percent of any money collected through this provision be allocated to for municipal code enforcement purposes. The bill requires out-of-state creditors who have served a notice of intention to foreclose on a residential property to designate an in-state person or entity responsible for the care, maintenance, and up-keep of the property.
This bill imposes additional requirements on lenders seeking to foreclose on a residential mortgage property and take title to the property. The bill requires persons taking title to a property through sheriff’s sale or deed in lieu of foreclosure to send notice to any tenants at the property that ownership has changed and that the tenants are not required to vacate the premises unless the new owner files an eviction complaint in Superior Court and obtains a court order requiring the tenant to move. A new owner who does not provide the notice to the residential tenant is liable to the tenant in a civil action for triple damages plus attorney’s fees and costs or damages up to $2,000 plus attorney’s fees and costs. The new owner must include the notice in any communication with the tenant which seeks to induce the tenants to vacate the property. The new owner of the property must make a diligent effort to obtain the names and addresses of all tenants occupying the property. If enacted, this legislation would prohibit the new owner from harassing a tenant or mischaracterizing the right of the tenant to remain in the property under any federal, state, or local law. The bill amends the “Mortgage Stabilization and Relief Act,” P.L.2008, c.127, to require a lender that files a foreclosure complaint to provide to the municipal clerk of the municipality where the property is located, or other authorized municipal official, the location all properties the creditor is foreclosing upon within the municipality and the status of each action. Current law requires the Department of Banking and Insurance to provide detailed information on residential foreclosures, arranged by county. The bill requires that this information be arranged by municipality and include the disposition of all foreclosure actions initiated by the creditor within the municipality. Information sent to the municipal clerk by the creditor may be provided by way of electronic communication. The bill further amends the Mortgage Stabilization and Relief Act to require that a creditor serving a complaint for foreclosure on a property that is an affordable housing unit pursuant to the Fair Housing Act notify the municipality, via electronic communication, that the property is an designated as affordable housing.
This bill requires that an individual or entity which takes possession of a residential property through foreclosure to provide any tenant in the property with relocation assistance equal to six months of rental payments if the tenant is being removed as the result of an illegal occupancy. Current law exempts property owners who take possession to a property through foreclosure from paying relocation assistance to a tenant who must vacate a property due to an illegal tenancy. Current law requires a new owner to honor the terms of an existing residential lease on the property. This bill imposes on a new owner the same obligation to the tenant as would be imposed on the original landlord if the tenant is forced to leave the property as the result of an illegal tenancy.
Enacts the Mortgage Foreclosure Consultant Fraud Prevention Act.
Substituted 6/22/10
Signed by governor 10/20/10, Chapter 227
Enacts the "Access to Justice in Lending Act"; relates to a mortgagor's right to recover attorneys' fees in actions or proceedings arising out of foreclosures of residential property which consists of a one- to four-family residence, condominium that is occupied by the mortgagor or cooperative unit that is occupied by the mortgagor; provides reciprocal attorneys' fees.
Enacting clause stricken 3/16/10
Requires prevailing party in foreclosure action to maintain property in safe and habitable condition; allows municipality to enforce this section.
Requires a mortgagee or lienor who institutes proceedings to foreclose, to have a receiver appointed and ordered to enter into an agreement with the appropriate agency to repair and correct violations of housing maintenance laws, or alternatively to take possession of the premises themselves and enter into a repair agreement with the city agency to prevent the agency from taking title to an abandoned building.
Provides special protections to tenants of properties that have been foreclosed.
S.B. 51105
Relates to home mortgage loans, the crime of mortgage fraud and the filing of transfers and assignments of mortgages.
Relates to procedures at mandatory settlement conferences in residential foreclosure actions and requires good faith settlement discussions in connection with such foreclosure actions.
Provides for the foreclosure of mortgages of $5 million or more by power of sale.
Relates to distressed property consultants advertisements.
A.B. 10226
Substituted 6/9/10
Requires the required notice of foreclosure to tenants to include a notice of the rights of rent-regulated tenants; requires such notice to include the name, address and telephone number of the foreclosing party.
Passed Assembly 7/1/10
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; requires the plaintiff in a foreclosure action to affirm that it is the holder and owner, or its designed agent, of the subject mortgage and note; 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.
Relates to the failure of auction and requirements for sale of real estate owned property; defines terms; describes requirements for sale and penalties.
Relates to presumption of dismissal of residential mortgage foreclosure actions for repeated plaintiff non-appearance or failure to meet readiness deadlines.
Expands the definition of "tenant" for purposes of notice upon the commencement of an action to foreclose upon the leased residential real property.
Enacts the Homeowner and Homebuyer Protection Act to prohibit home foreclosure rescue scams in which a transferor is induced to sell property for less than 50 percent of its fair market value to avoid foreclosure, provides protections in lease option contracts by requiring that such contracts be in writing, includes specified minimum contents, be recorded, gives purchasers under the contract notice of and the right to cure any default, and specifies the consequences of a seller's default on a loan secured by a lien on the property, provides protections in contract for deed transactions by requiring that such contracts be in writing, includes specified minimum contents, be recorded, gives purchasers under the contract notice of and the right to cure any default, and involves property to which the seller holds title, and makes violation of chapters 47g and 47h of the General Statutes a basis for discipline under the Manufactured Homes Licensing Act.
Amends and extend the Emergency Program to Reduce Home Foreclosures Act, increases and authorizes fees under the S.A.F.E. Mortgage Licensing Act, and revises the definition of certain terms in the predatory lending law.
Provides that an individual homeowner selling his or her primary residence is not subject to liability under G.S. 75-1.1 under amendments made to foreclosure rescue transactions in S.B. 1015.
Amends §§2323.07, 2329.01, 2329.02, 2329.07, 2329.33, and 3767.41 and enacts §§2308.01 to 2308.06 of the Revised Code relative to foreclosure actions and certain related nuisance abatement actions.
Amends §§169.02, 1349.20, 4735.18, and 4735.24 of the Revised Code to require earnest money for the purchase of residential real estate to be deposited in an interest-bearing account to be used to fund foreclosure prevention programs.
Relates to crimes and punishments; creates the Mortgage Rescue Fraud Protection Act; states legislative findings and purpose; defines terms; provides certain foreclosure notice requirements; provides for rescission of certain contracts; prohibits certain acts; provides certain limitations and requirements for foreclosure reconveyances; provides remedies for violations; provides for promulgation of rules.
Creates the Neighborhood Preservation Act.
Relates to civil procedure; relates to judgment in foreclosure suit; modifies certain procedure for deficiency judgment; makes language gender neutral.
H.B. 3610, Special Session
Requires beneficiary or beneficiary's agent that denies request for loan modification to provide grantor with explanation of how beneficiary or beneficiary's agent calculated that grantor was not eligible for loan modification. Specifies that beneficiary or beneficiary's agent complies with requirement if beneficiary or beneficiary's agent complies with certain federal guidelines. Requires beneficiary or beneficiary's agent that denies loan modification to record affidavit that states that beneficiary or beneficiary's agent provided required information. Requires beneficiary or beneficiary's agent to describe basis for beneficiary's determination that grantor was not eligible for loan modification. Specifies date by which trustee must provide affidavit of compliance with requirement to meet with grantor and review grantor's request to modify mortgage loan.
Provides that interest in property covered by trust deed is terminated and foreclosed as to person that was given notice of trustee's sale. Clarifies circumstances in which bar against action for deficiency applies to property.
Prohibits owner of foreclosed residential real property from neglecting real property during periods of vacancy. Permits local government to assess civil penalty for each day during which owner fails to remedy conditions of neglect. Sunsets January 2, 2014.
S.B. 1013, Special Session
Provides that requirement to provide certain notices to tenant of foreclosed property applies only to residential tenant. Prescribes form of required notice. Provides that if tenant elects to apply prepaid rent or security deposit to tenant's rent obligation, purchaser at trustee's sale is not responsible for return of security deposit or prepaid rent to tenant.
Signed by governor 11/23/10, Act 105
Creates the Pennsylvania Housing Affordability and Rehabilitation Enhancement Program to provide funding for mortgage or rental assistance, including housing counseling, foreclosure prevention and refinancing products.
Provides for the creation of land banks for the conversion of vacant or tax-delinquent properties into productive use.
Amends the act of December 3, 1959 (P.L.1688, No.621), known as the Housing Finance Agency Law, in homeowner's emergency assistance, further providing for eligibility.
Signed by governor 10/27/10, Act 90
Provides for neighborhood blight reclamation and revitalization.
Amends the Mortgage Institutions Act; prohibits fixed credit on mortgage bonds for costs, expenses and attorney fees in the event of foreclosure, in excess of 10 percent of the principal amount owed; establishes penalties for infringement to the foregoing.
Provides the insurance program for mortgage loans to families who have faced foreclosure on their primary residence, assigned to the Authority for the Housing Finance for the purposes of creating mortgage loan alternatives for those families or individuals that have suffered foreclosure of their principal residence for the calendar years 2006, 2007, 2008, 2009 and 2010; assigns the Authority for Housing Finance the sum of $30,000,000 of the Fiscal Stabilization Fund to cover the cost of the program.
Creates the Compulsory Mediation and Your Home Preservation Act to insert the compulsory mediation process between the mortgagee and the mortgagor in the foreclosure process on Property devoted to housing.
Amends the law of the Creole Economic Stimulus Plan in order to establish the Authority for Housing Finance of Puerto Rico and a program to prevent foreclosures on properties used for residential purposes by a second mortgage of the amount of $15,000.
S.R. 867
Urges the banking industry sector in Puerto Rico to be flexible in applying standards for foreclosure against those public servants who have been fired as a result of the implementation of Law No. 7 of 2009; establishes effective measures to facilitate the provision of flexible payment plans.
Directs the Committee on Banking, Consumer Affairs and Public Corporations of the Senate to conduct an investigation into cases for recovery of money, personal loans, or other obligations, including those sought by foreclosures levied on residential real estate and other measures filed or settled in the courts by the banks, companies or financial institutions, cooperatives and other entities as assignees or administrators of the above.
Prevents eviction of residential tenants in the case of foreclosure until the property transfers to another non-financial institution. In addition, all utilities that are the responsibility of the owner would be transferred to the mortgagee and would be paid by the mortgagee.
Withdrawn at sponsor’s request 3/17/10
Requires a mortgagee to notify tenants of the date, time and place of a foreclosure sale along with contact information for Rhode Island Legal Services and HUD approved counseling agencies in Rhode Island. It would also require that any successor in interest to a foreclosed mortgagor continue to provide essential services such as heat, running water, hot water, electric or gas if the foreclosed mortgagor had provided said services prior to foreclosure. This act requires a successor in interest to a foreclosed mortgagor to give tenants written notice to quit at least 60 days in advance.
Requires foreclosure deeds to be recorded within 30 days of the foreclosure sale, with the failure to do so rendering the sale null and void. This act also establishes a monthly “periodic tenancy,” subject to the provisions of the "residential landlord and tenant act," for bona fide tenants of a mortgagor.
This act reduces the time after which a recorded mortgage would be unenforceable against the real estate securing the mortgage.
Requires any mortgagee who is commencing foreclosure proceedings on owner-occupied residential property, to advise the mortgagor of the availability of counseling through HUD-approved mortgage counseling agencies. Failure upon the part of the mortgagee to provide said notice to the mortgagor of this requirement would render the foreclosure void. Counseling between the parties under this section would be mandatory and at no cost to the mortgagee. Furthermore the mortgagee must include in the foreclosure deed an affidavit of compliance with the provisions of this act.
Became law without governor’s signature 6/25/10, Chapter 237
Eliminates an inconsistency in foreclosure advertising regarding the calculation of the time frame between the third publication and the original sale date.
Prevents foreclosure for a period of six months on homes whose owners were current in their mortgage payments and lost employment due to the March and April 2010 floods.
Requires mortgagees to provide notice to tenants of a pending foreclosure and would prevent towns and cities from regulating or seeking to impose any requirement, duty or obligation affecting the rights of any mortgagee or any person who acquires title or the occupants of the property subject to such mortgage.
Requires mortgagees, upon filing a 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 of Rhode Island. Further, the act 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.
Establishes a "Foreclosure Registry" within the Rhode Island Housing and Mortgage Finance Corporation and in conjunction with the Housing Resource Commission.
Imposes an immediate 180 day moratorium on foreclosures and actions for evictions of tenants of foreclosed property.
Eliminates an inconsistency in the calculation of the time frame between the third foreclosure notice publication and the original sale date.
Requires any successor in interest to a foreclosed mortgagor to meet certain notification requirements prior to evicting a tenant legally occupying a foreclosed property.
Signed by governor 5/12/10, Act 164
Relates to service on unknown parties by publication, so as to provide in a mortgage foreclosure action involving multiple units in a single horizontal property regime, a party may accomplish notice by publication by consolidating the notices into a single notice that identifies each apartment included in the foreclosure action based on the apartment's description in the master deed.
Allows action to be commenced to recover the balance due upon the obligation for which the trust deed was given as security if sale of land to foreclose deed of trust or mortgage sold for less than amount due.
Clarifies that in any sale of land to foreclose a deed of trust, mortgage, or other lien securing the payment of money or other thing of value or under judicial orders or process, advertisement of such sale is to be made in a newspaper either published or distributed in the county where the sale is to be made.
Alters the acceptable time for foreclosure sales to noon to 7:00 p.m., rather than 10:00 a.m. through 4:00 p.m.
Signed by governor 6/2/10, Public Chapter 1001
Requires cause of action to recover balance due upon sale of real property to foreclose a deed of trust, mortgage, or other lien where the mortgaged property sells for less than the amount due.
Requires mandatory mediation between a bank or other financial institution and a borrower before foreclosure proceedings may be instituted on a deed of trust, mortgage, or other lien securing the payment of money or other thing of value.
Signed by governor 4/28/10, Public Chapter 834
Requires that the lender, trustee, or other creditor send the debtor a notice of the right to foreclose prior to the first publication of a notice of a foreclosure sale of a deed of trust, mortgage, or other lien securing the payment of money or other thing of value on an owner-occupied residence.
Applies loans protected under the Tennessee Home Loan Protection Act of 2006 to include purchase money mortgages as well as non-purchase money mortgages; creates a pilot project in Shelby County for voluntary mediation prior to the foreclosure of loans entered into under such act.
Specifies information that must be provided in newspaper advertisement for judicial deed of trust or mortgage foreclosure sales; directs secretary of state to establish a web site for filing and posting notices of foreclosure sales.
Modifies provisions related to licensure and prohibited conduct for those engaging in foreclosure rescue or loan modification assistance.
This bill: modifies requirements for notices of trustee's sale if the property to be sold is residential rental property; modifies unlawful detainer provisions relating to foreclosed residential rental property; enacts a provision requiring a notice to a tenant of property that is subject to a mortgage foreclosure proceeding; provides a sunset for provisions enacted in this bill; and makes technical changes.
Establishes a program to require mediation in actions for foreclosure of a mortgage on any dwelling house of four units or less that is occupied by the owner as a principal residence.
Adds unlawful detainer cases against a former owner based upon a foreclosure against that owner to the list of actions for which an indigent must post an appeal bond. In cases of unlawful detainer against a former owner based upon a foreclosure against that owner, a person who has been determined to be indigent shall post an appeal bond within 30 days from the date of judgment.
Establishes that suits in interpleader of real estate escrows shall go to General District Court, and protects escrow funds in the event of a real estate foreclosure.
Clarifies that, in the event of a foreclosure sale, the trustee shall cause the proceeds of the sale to be applied to the payment of taxes on the property. The bill also eliminates a redundancy in the Code pertaining to the duties of a trustee in a foreclosure sale.
Provides a one-year forbearance on foreclosure for a borrower who is receiving unemployment benefits. Requires the trustee to pay a $25 fee when recording a notice of sale. Repeals the expiration date of the statute requiring beneficiaries to contact borrowers before issuing a notice of default and expands the application of that requirement to all deeds of trust, rather than only deeds of trust issued between 2003 and 2007.
Protects and assists consumers and homeowners during foreclosure proceedings, and provides protection from unfair lending practices. Imposes a surcharge for the recording of a notice of sale on owner-occupied residential real property. Creates the protect Washington homeowners mediation program account. Provides an expiration date of December 31, 2014, for the surcharge and the account.
Repeals the Prevent or Reduce Owner-occupied Foreclosure Program and the Prevent or Reduce Owner-occupied Foreclosure Program account. Requires the state treasurer to transfer to the Washington financial education public-private partnership account the unexpended balance of the repealed account.
S.J.M. 8024
Requests that all residential mortgages and deeds of trust become recourse loans.
Requires a landlord to give written notice to a prospective tenant when property is subject to foreclosure; requires a landlord to give written notice to a tenant when property is subject to foreclosure or sale; provides for damages for failure to provide notice; effect of foreclosure on preexisting tenancy; notice of foreclosure; termination of lease prior to end of lease term.
Establishes a system for foreclosure mediation; defines terms; requires that notice of the right to request foreclosure mediation be given; gives discretion to magistrate courts in granting requests for foreclosure mediation; provides procedure for mediation proceedings; directs the Supreme Court to adopt rules concerning foreclosure mediation; provides exemptions to the Foreclosure Mediation Act; and provides immunity from civil liability.
Relates to the gathering and reporting of residential mortgage foreclosure data and statistics; provides for the electronic reporting of such information directly to the Division of Banking by trustees; and provides that the county clerks shall submit a list of the reports of such foreclosures filed by trustees.
Signed by governor 4/2/10
Relates to gathering, compilation and publication of residential mortgage foreclosure data; expands the powers and duties of the West Virginia Housing Development Fund to include the receipt, compilation and publication of mortgage foreclosure data and reports contained in reports of sale filed by trustees with county clerks; provides the West Virginia Housing Development Fund with the authority to require additional information to be filed with the reports of sale; transfers the jurisdiction, powers and duties relative to the receiving, compiling into an electronic data base and making the data available from the commissioner of Banking to the West Virginia Housing Development Fund; provides that mortgage financial data and reports received by the commissioner of Banking under the code provisions prior to the effective date be supplied to the West Virginia Housing Development Fund; provides that the portion of the fee paid for recording the trustee's report of sale that is paid by county clerks to the Division of Banking be paid to the West Virginia Housing Development Fund; and establishes an effective date of July 1, 2010.
Failed to pass pursuant to Senate Joint Resolution 1 4/28/10
Requires the plaintiff in a foreclosure action against residential rental property to provide the tenants of the property with notice that a foreclosure action has been filed, notice that the plaintiff has been granted judgment, along with notice of the date on which the redemption period ends, and notice of the date and time of the hearing to confirm the sale of the property. A tenant may recover $250 in damages if a notice is not given. In addition, the bill provides that a tenant may retain possession of the rental unit for up to two months after the end of the month in which the sale of the property is confirmed, and may withhold rent in the amount of the security deposit for the last period during which the tenant actually retains possession of the rental unit. The bill also requires a landlord to notify any prospective tenant in writing that a foreclosure action has been commenced and, if judgment has been entered, the date on which the redemption period ends. Any rental agreement entered into during the pendency of a foreclosure action must include a separate statement, signed by the tenant, that the landlord has provided the required notices, or it is voidable at the option of the tenant. Prohibits the placing of any information on a civil action concerning the removal of a tenant from a residential rental property in the WCCA Internet Web site if that removal was the result of a mortgage foreclosure of the residential rental property.
Requires the court in a foreclosure action to delay the action for foreclosure of a mortgage for 90 days. Under the bill, the court must delay the action only if the mortgagor shows that all of the following conditions apply: 1. The mortgagor owns the real estate subject to the mortgage and the property is his or her principal residence. 2. The mortgagor does not own any other real estate. 3. The real estate subject to the mortgage is improved with a residential building containing less than six dwelling units.
Requires the lender, mortgage holder, or any other party bringing a foreclosure action against a homeowner to include, in its pleading that sets forth a claim for relief, a statement that either party may request the court to order alternative dispute resolution for the foreclosure claim. Under the bill, if either of the parties elects alternative dispute resolution, the time periods for any responsive pleadings in the case are tolled until the alternative dispute resolution is concluded.
Under this bill, if a borrower has failed to make full scheduled payments on a residential first mortgage loan for two consecutive payment periods and the failure to make these payments renders the borrower in default, a mortgage banker holding or servicing the loan must provide the borrower with notice of the default within 45 days after the due date for the second payment period. The notice must inform the borrower of any action required of the borrower to cure the default and of the names and addresses of adjustment service companies licensed with the Department of Financial Institutions that offer credit counseling services to homeowners. Under this bill, if an action is brought in circuit court for the foreclosure of a mortgage on real estate, the contents of the legal pleadings that make the claim for foreclosure must include a statement that either party to the action may request that the court order the parties to select an alternative method of settling the claim. Current law allows a circuit court to order parties to an action to use an alternative settlement method, such as binding arbitration, mediation, nonbinding arbitration, or direct negotiations. Under the bill, if the court orders the parties to select an alternative method to settle the claim and the court determines that a party is not participating in good faith, the court must terminate the settlement alternative and may order that party to pay the other party’s costs, including attorney fees, incurred while participating in the settlement alternative.
This bill requires the plaintiff and the court to provide a written notice to the residential property owner who is the defendant in an action for foreclosure. The bill requires the notice to inform the residential property owner that he or she continues to be the owner of the property, which includes the responsibility for the payment of real estate taxes, until the property is sold under the foreclosure, the sale is confirmed by the court, and the new owner records the deed with the register of deeds. Under the bill, the plaintiff is required to include the notice with the summons and complaint and the court is required to provide the notice at the time that the court issues the judgment of foreclosure. The bill prohibits the delay of a sheriff’s sale of residential property beyond the date originally scheduled for the sale unless the court authorizing the sale makes a finding on the record that there is good cause for the delay. If a delay is permitted, the bill requires the sheriff’s sale to take place within 60 days after the original postponed sale date. Currently, if the court finds that a mortgaged property has been abandoned after receiving evidence as to that fact, the court may enter judgment for foreclosure and order the sale of the property within two months after the entry of the judgment. This bill requires the court, before making a finding of abandonment, to receive evidence from the defendant, if available, and the plaintiff, as to whether the property is abandoned. The bill also requires the court, after finding that a property has been abandoned and entering a judgment for foreclosure, to order that the sale of the property take place between 45 days and 70 days after the judgment is entered.
This bill creates a process to allow a borrower who is in default on a first mortgage loan on a residential property (a one-family to four-family dwelling) to pursue a loan modification during a mortgage foreclosure action.
Under current law, with numerous exceptions, if a state agency contracts for services, the services must be obtained from the lowest responsible bidder or the person submitting the most advantageous competitive sealed proposal. This bill creates an exception by prohibiting an agency that is contracting for services from contracting with a financial institution unless the financial institution certifies that it does not own 100 or more residential properties in this state from foreclosure actions on residential mortgages.
Creates a process to allow a borrower who owes a first or second mortgage loan on a residential property to seek mediation when the borrower is in default on the loan and the mortgagee is beginning a mortgage foreclosure action. Under the bill, if the borrower has failed to make two consecutive mortgage loan payments, the mortgagee must send the borrower a notice when commencing a foreclosure action. The notice must inform the borrower of the default and what must be done to cure the default, state that the mortgagee intends to start a foreclosure action, and provide the names and addresses of credit counseling services available to homeowners. Under the bill, when a mortgagee starts a foreclosure action, the mortgagee must inform the borrower of the right to request mediation by submitting a request to the director of state courts (director). If mediation is requested, the foreclosure action is stayed until mediation is completed. When the borrower requests mediation, the bill requires the director to refer the borrower to a financial analyst for advice regarding the mortgage foreclosure and to provide the mortgagee and borrower with names of persons who are available to provide mediation services. The bill requires the director to create a list of persons who have knowledge of financial matters to serve as mediators, create a separate list of persons to serve as financial analysts, and provide those persons with training related to their duties under the bill. The bill requires the director to notify the parties of the time and place of the mediation session. The mediator may not compel a settlement between the parties, but must attempt to achieve a resolution of the issues involved in the mediation. The bill requires the parties to engage in the mediation in good faith, which includes attending the mediation sessions, providing full information to the mediator and other party, and considering debt restructuring alternatives as a method of resolving the default. The cost of the mediator may be added to the mortgage loan payments required by the borrower. Under the bill, if the mediator determines that the borrower or mortgagee has not mediated in good faith, the mediator provides that information to the court. If the mortgagee has not mediated in good faith, the court may supervise the mediation directly, prohibit the mortgagee from continuing an action to foreclose on the residential property for 180 days, or order the mortgagee to pay the borrower’s court costs, including attorney fees. If the borrower has not mediated in good faith, the mortgagee may proceed immediately to foreclose on the residential property.
Under this bill, before a mortgagee who is a participant in the federal mortgage modification program may commence a mortgage foreclosure action on owner-occupied residential property, the mortgagee must mail to the homeowner a written notice telling the homeowner that the mortgage loan is in default, that a foreclosure action may be commenced, the reason the mortgage loan is in default, and the action the homeowner must take to cure the default. The notice must include the name, address, and telephone number of the mortgagee or mortgage servicer who has the authority to enter into negotiations regarding modifications to the mortgage loan, and that the homeowner may request modifications to the mortgage loan. The notice must also provide the homeowner with the names and addresses of state-licensed or federally-approved organizations that offer credit counseling services to homeowners. The bill requires a mortgagee, when commencing a foreclosure action involving owner-occupied residential property, to file an affidavit with the court stating whether the mortgage loan is owned, securitized, or guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae and whether the mortgagee is a participant in the federal mortgage modification program. If the affidavit states that the mortgage loan is owned, securitized, or guaranteed by one of those federally-sponsored organizations and that the mortgagee is a participant in the federal mortgage modification program, the affidavit must also include a statement about the results of the modification program. The statement must show either that the mortgage modification process has been completed without resulting in a modification of the mortgage loan and that written notice of that result has been sent to the homeowner, or that the mortgage loan was not eligible for a modification under that program and the reason for that determination. Under the bill, a court may not enter a judgment for foreclosure involving owner-occupied residential property until the court has received a copy of the affidavit. After the court receives the required affidavit, the bill requires the court to determine if the facts stated in the affidavit are correct. If the court determines that there is no dispute about the facts stated in the affidavit, the court may continue the foreclosure action. If the court determines that the mortgage loan is eligible for the federal mortgage modification program, but the process to determine if a modification is possible has not been completed, the bill requires the court to stay the foreclosure action under the program’s requirements are completed. The bill requires the mortgagee to notify the court of the status of the process every 45 days or risk having the foreclosure action dismissed. If the mortgage loan is modified under the program, and the homeowner is complying with the terms of the modification, the bill requires the mortgagee to notify the court and the court to dismiss the foreclosure action. Under current law, as created in 2009 Wisconsin Act 2, if a residential rental property is the subject of a foreclosure action, the mortgagee is required to provide notice to the tenants that a foreclosure action has been commenced no later than five days after the action is filed, and that a judgment of foreclosure has been entered no later than five days after the entry of the judgment. This bill changes those time limits to 30 days. The bill also adds a requirement that the notice include a statement of the rights and obligations of the tenant under those situations. Current law, as created in 2009 Wisconsin Act 2, requires these notices to be sent by certified mail and specifies that the notice is completed when mailed, while this bill adds that the notice must also be sent by first class mail and specifies that the notice is considered complete when both mailings are sent to the tenant or to the occupant of the rental unit if the tenant’s name is unknown. Under current law, as created in 2009 Wisconsin Act 2, a tenant whose tenancy is terminated as the result of a mortgage foreclosure may remain in possession of the rental unit for up to two months. This bill provides that during this period of possession the purchaser at the foreclosure sale and the tenant have all the rights and obligations of a landlord and tenant, respectively, with respect to each other.