Foreclosures 2009 Legislation 

(Excludes foreclosures due to tax delinquencies and homeowner associations)

Last Updated: January 5, 2010

NCSL Contact: Heather Morton, Denver, (303) 364-7700

In 2009, lawmakers in 46 states, the District of Columbia and Puerto Rico introduced legislation regarding foreclosures. Legislation was enacted in 33 states and Puerto Rico: Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Maine, Maryland, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolina, North Dakota, Oregon, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington and West Virginia.

 

Related NCSL Webpages:

 

AL | AK | AZ | ARCA | CO | CT | DE | DC | FL | GA | HI | ID | IL | IN | IA | KS | KY | LA | ME | MD | MA | MI | MN
 MS | MO | NV | NJ | NM | NY | NC | ND | OH | OK | OR | PA | PR | RI | SCSD | TN | TX | UT | VT | VA | WA | WV | WI
States Bill Summary
Alabama
Indefinitely postponed 5/7/09
Relates to notices of foreclosure, requires the judge of probate to provide a copy of a notice of foreclosure to recorded mortgagees and other lienholders.
 
Indefinitely postponed 5/14/09
Provides for a moratorium period of 180 days on foreclosure of certain mortgages. This bill provides that no interest or fees shall accrue during the 180-day moratorium period. This bill prohibits judges of probate from recording or filing for registration any foreclosure deed pursuant to a foreclosure sale conducted under a power of sale or judicial foreclosure during the 180-day period.
 
Indefinitely postponed 5/14/09
Requires a foreclosure notice to be mailed to the borrower containing the names of the parties to the mortgage, a legal description of the property, the default, and the mortgagee's intent to sell with a warning in conspicuous type. This bill extends the time of a foreclosure sale until 60 days after the notice is mailed and after publication of the notice has run for four consecutive weeks in a local newspaper. Repeals existing law allows mortgagees the option, when no power of sale is conferred by the mortgage or deed of trust, to foreclose in court or by sale out of court after condition is broken and after notice is published. Requires a foreclosure notice to be mailed to the borrower that contains specific criteria. Also, this bill requires a 60-day time period after the notice is mailed and after publication once a week for four consecutive weeks in a local newspaper for a foreclosure sale. Reduces the redemption period for property that is sold for failure to make mortgage payments to six months. extend the period of time that the possession of the land must be delivered for purposes of preserving redemption rights to 20 days.
 
Relates to exercising the right of redemption of real estate, reduces the time period to 90 days from the date of the foreclosure sale.
Alaska
Passed House 4/11/09
Relates to notice and procedures for real property foreclosures, the sale of property on execution, and deeds of trust.
Arizona
H.B. 2004, Fourth Special Session
Substituted 11/23/09
Restores the anti-deficiency statute to the language it contained prior to the Forty-Ninth Legislature, First Regular Session. The bill also adds a new subsection that prohibits protection from a deficiency judgment on speculative construction projects where the contracts for the speculative construction project are entered into after January 1, 2010.
 
H.B. 2008, Third Special Session
Signed by governor 9/4/09, Chapter 7
Amends provisions regarding an action to recover balance after sale or foreclosure on property under trust deed.
 
Passed House 6/11/09
Provides notice for tenants renting homes facing foreclosures.
 
Passed House 3/27/09
Relates to redemption rights during an action to foreclose.
 
Requires that landlords send specified notice to tenants before the sale of the property in foreclosure.
 
Regulates contracts with home equity purchasers and foreclosure consultants.
 
Amends provisions regarding notice for trustee's sale.
 
Provides for a 60-day stay on a trustee's sale.
 
S.B. 1004, Fourth Special Session
Signed by governor 11/23/09, Chapter 4
Restores the anti-deficiency statute to the language it contained prior to the Forty-Ninth Legislature, First Regular Session. The bill also adds a new subsection that prohibits protection from a deficiency judgment on speculative construction projects where the contracts for the speculative construction project are entered into after January 1, 2010.
 
S.B. 1024, Third Special Session
Substituted 8/24/09
Amends provisions regarding an action to recover balance after sale or foreclosure on property under trust deed.
 
Requires landlords to provide written notice to tenants of any foreclosure action against the property.
 
Provides that notice of a trustee's sale be mailed to the property and any other mailing address for the property.
 
Signed by governor 7/10/09, Chapter 68
Contains the following requirements in order for a deficiency judgment on a single one-family or two-family trust property to be prohibited: a) Requires the trustor to have lived in the trust property for at least six consecutive months. b) Requires a certificate of occupancy to have been issued for the property. c) Places responsibility on the trustor to demonstrate that the trust property was utilized by the trustor for six consecutive months.
 
Relates to identification and foreclosure property deeds.
 
Requires landlords to notify tenants of any foreclosure action against the property.
Arkansas
Withdrawn by author 4/6/09
Provides residential tenants relief from foreclosure and eviction proceedings; stays eviction procedures for 90 days following a residential foreclosure if a tenant is current in paying rent; requires good faith negotiations with the tenant for the purchase of the property.
 
Adopted 3/24/09
Encourages mortgage lenders to impose a 90 day moratorium on all residential foreclosure actions in the state of Arkansas.
 
Signed by governor 3/27/09, Act 661
Creates the Arkansas Housing Trust Fund; creates a housing trust fund advisory committee; provides for the administration of the Housing Trust Fund by the Arkansas Development Finance Authority; monies in the Housing Trust Fund can be used for housing and foreclosure counseling.
 
Signed by governor 3/19/09, Act 482
Makes various corrections to the Arkansas Code regarding mortgagor rights in foreclosure sales.
 
Withdrawn by author 4/6/09
Concerns the Emergency Arkansas Resident Homeowners Loan Equalization Act of 2009; provides for equal application of federal mortgage loan relief legislation.
California
A.B. 7, Special Session
Signed by governor 2/20/09, Chapter 5
This bill, until January 1, 2011, and only with respect to specified loans that were recorded between January 1, 2003, to January 1, 2008, prohibits a mortgagee, trustee, or other person authorized to take sale from giving a notice of sale for an additional 90 days if the loan at issue is the first mortgage or deed of trust that the property secures, the borrower occupied the property as his or her principal residence at the time the loan became delinquent, and the notice of default has been filed. The bill exempts certain loans from this prohibition, including, upon order of the commissioner of Corporations, the commissioner of Financial Institutions, or the Real Estate commissioner, as applicable, the loans of a mortgage loan servicer, as defined, if the mortgage loan servicer applies to the commissioner for an exemption indicating that it has implemented a loan modification program with specified features and the commissioner concludes that the program meets specified requirements. The bill permits a mortgage loan servicer to submit a revised application if its application is denied, and permits the commissioner to revoke an exemption under certain circumstances. The bill requires the commissioners to adopt regulations in this regard, as specified. The bill requires the secretary of Business, Transportation and Housing to report to the Legislature three months after the first exemption is granted regarding the details of the actions on exemption of loans serviced by a mortgage loan servicer under a loan modification program and to submit subsequent reports every six months thereafter. The bill requires the secretary to post specified information on the exemption program on the agency's Internet Web site. The bill provides that a person who violates these provisions is deemed to have violated his or her license law. The bill provides that the failure to comply with the provisions described above does not invalidate a sale that is otherwise valid under specified provisions. The bill requires that a notice of sale include a declaration from the mortgage loan servicer regarding the issuance of a temporary or final order of exemption from the commissioner pursuant to these provisions and the timeframe applicable to the notice of sale. The bill makes a statement of legislative findings.
 
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.
 
Passed Assembly 5/28/09
Requires the landlord, at the time of the execution of the rental agreement of a single-family or multi-family dwelling unit, not to exceed four units, to disclose in writing if the property is subject to any outstanding notice of default, pending suit to foreclose a mortgage, pending declaration of forfeiture, or any pending proceeding to foreclose a tax lien, as specified. Allows the tenant to recover twice the actual damages or twice the monthly rent, whichever is greater, and all prepaid rent, if the tenancy terminates, as provided. The provisions of this bill do not apply to premises managed by a court-appointed receiver.
 
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.
 
Signed by governor 10/11/09, Chapter 264
Enacts the Buyer's Choice Act, which prohibits, until January 1, 2015, a mortgagee or beneficiary under a deed of trust who acquired title to residential real property improved by four or fewer dwelling units at a foreclosure sale from, requiring, directly or indirectly, as a condition of selling the property, that the buyer purchase title insurance or escrow services in connection with the sale from a particular title insurer or escrow agent. This bill provides that the act does not prohibit a buyer from agreeing to accept a title insurer or an escrow agent recommended by the seller if written notice of the right to make an independent selection is first provided by the seller to the buyer. A seller who violates these provisions would be liable to the buyer for an amount equal to three times all charges made for the title insurance or escrow services.
 
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.
 
Resolves that the state of California and local governments should explore the potential divestiture of all financial interests in banking and other financial institutions that fail to cooperate with foreclosure prevention efforts that include temporary moratoriums on foreclosures, renegotiation of mortgage principles to reflect current values, and good faith negotiations with mortgagees; and be it further resolved, that the Assembly also supports retirement programs that adopt a similar divestiture policy.
 
S.B. 7, Special Session
Signed by governor 2/20/09, Chapter 4
This bill, until January 1, 2011, and only with respect to specified loans that were recorded between January 1, 2003, to January 1, 2008, prohibits a mortgagee, trustee, or other person authorized to take sale from giving a notice of sale for an additional 90 days if the loan at issue is the first mortgage or deed of trust that the property secures, the borrower occupied the property as his or her principal residence at the time the loan became delinquent, and the notice of default has been filed. The bill exempts certain loans from this prohibition, including, upon order of the commissioner of Corporations, the commissioner of Financial Institutions, or the Real Estate commissioner, as applicable, the loans of a mortgage loan servicer, as defined, if the mortgage loan servicer applies to the commissioner for an exemption indicating that it has implemented a loan modification program with specified features and the commissioner concludes that the program meets specified requirements. The bill permits a mortgage loan servicer to submit a revised application if its application is denied, and permits the commissioner to revoke an exemption under certain circumstances. The bill requires the commissioners to adopt regulations in this regard, as specified. The bill requires the secretary of Business, Transportation and Housing to report to the Legislature three months after the first exemption is granted regarding the details of the actions on exemption of loans serviced by a mortgage loan servicer under a loan modification program and to submit subsequent reports every six months thereafter. The bill requires the secretary to post specified information on the exemption program on the agency's Internet Web site. The bill provides that a person who violates these provisions is deemed to have violated his or her license law. The bill provides that the failure to comply with the provisions described above does not invalidate a sale that is otherwise valid under specified provisions. The bill requires that a notice of sale include a declaration from the mortgage loan servicer regarding the issuance of a temporary or final order of exemption from the commissioner pursuant to these provisions and the timeframe applicable to the notice of sale. The bill makes a statement of legislative findings.
 
Signed by governor 10/11/09, Chapter 630
Existing law defines a foreclosure consultant as a person who offers, for compensation, to perform specified services for a homeowner relating to a foreclosure sale, and imposes regulations upon foreclosure consultants when servicing a foreclosure sale, as specified. Existing law excludes specified persons from the definition of a foreclosure consultant, including a person licensed under the Real Estate Law when making a direct loan or engaging in specified acts, and a person licensed to make loans as a finance lender, subject to the authority of the commissioner of Corporations to terminate this exclusion, as specified. This bill instead specifies that a real estate licensee and a finance lender are excluded from the definition of a foreclosure consultant when acting under the authority of that person's license, and deletes the commissioner's authority to terminate the finance lender's exclusion. The bill also deletes obsolete statutory references from those provisions.
 
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.
 
Passed Senate 6/2/09
Existing law governs the transfer of an interest in property in the case of a default on a mortgage. Existing law requires a mortgagee, trustee, or other person authorized to record the notice of default or notice of sale to make specified disclosures after recording the notice of default or notice of sale and prior to the date of sale. A notice of sale must be recorded with the county recorder at least 14 days prior to the date of sale. Existing law exempts a trustee from liability for any good faith error resulting from reliance on information provided in good faith by the beneficiary in performing these and other related acts regarding the nature and the amount of the default, as specified. Revises that provision by deleting the qualification that the information be in regards to the nature and amount of the default, as specified, and additionally exempts the trustee from liability for any good faith clerical error the trustee makes in performing acts required pursuant to the provisions described above and other related provisions governing mortgage defaults with respect to recording the notice of sale. Requires a mortgagee, trustee, or other person authorized to record a notice of sale or notice of default to make specified disclosures either on an Internet Web site or in a telephone recording that is accessible 24 hours a day, seven days a week and makes a related change. This bill also extends the time during which the notice of sale must be recorded from 14 to 20 days. Requires a beneficiary to provide an opening bid to a trustee at least one week prior to the first scheduled sale date. Authorizes the beneficiary to update the opening bid prior to the sale, as specified, and authorizes a beneficiary who provides an opening bid to accept a higher bid. Requires a trustee to provide a list of liens and encumbrances upon a trust property and to charge a reasonable fee for the information, as specified.
 
Signed by governor 8/5/09, Chapter 43
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. Existing law, until January 1, 2013, prohibits a mortgagee, trustee, beneficiary, or authorized agent from filing a notice of default for an additional 30 days on loans made between January 1, 2003, to December 31, 2007, that secure residential real property, under certain circumstances. This bill, until January 1, 2013, provides that these provisions apply to mortgages and deeds of trust recorded between January 1, 2003, to December 31, 2007, secured by owner-occupied residential real property containing no more than four dwelling units. The bill also, among other things, revises the declaration that is required to be filed in this connection with the notice of default. Existing law states legislative findings and declarations with regard to the duty loan servicers have to maximize net present value under their pooling and servicing agreements, stating that their duty is owed to all parties in a loan pool, not to any particular parties, and that a servicer acts in the best interests of all parties if it agrees to or implements a loan modification or workout plan, as specified. This bill specifies the application of these findings and declarations to certain investors. Existing law requires a trustee or authorized agent, upon posting a notice of sale, to post and mail a specified notice addressed to residents of property subject to foreclosure upon posting a notice of sale. Existing law requires a notice of sale to be recorded in the county in which the property, or some part of it, is situated at least 14 days prior to the date of sale. This bill specifies how and when this notice is to be mailed. This bill extends the time during which the notice of sale must be recorded from 14 to 20 days. Existing law requires a beneficiary on a deed of trust or a mortgagee on a mortgage to prepare and deliver a beneficiary statement or a pay-off demand statement within 21 days of receipt of a written demand from specified entitled parties. Existing law requires the written statement to include information reasonably necessary to calculate the payoff amount on a per diem basis for the period of time, not to exceed 30 days, during which the per diem amount is not changed by the terms of the note. The bill, until January 1, 2014, requires a beneficiary, within 21 days of the receipt of a short-pay request, as defined, to prepare and deliver a short-pay demand statement, which would be a written statement, conditioned on the existence of a short-pay agreement, that is prepared in response to a request from an entitled person or authorized agent, setting forth an amount less than the outstanding debt, together with any terms and conditions, under which the beneficiary would execute and deliver a reconveyance of the deed of trust securing the note that is the subject of the short-pay demand statement. The bill provides that the short-pay agreement is an agreement in writing in which the beneficiary agrees to release its lien on a property in return for payment of an amount less than the secured obligation. The bill permits a beneficiary that elects not to proceed with the transaction that is the subject of the short-pay request to refuse to provide a short-pay demand statement, but requires that he or she provide a written statement, indicating that the beneficiary has elected not to proceed. The bill provides that if the terms and conditions of the short-pay agreement require approval by the beneficiary of a closing statement prepared by an escrowholder, approval or disapproval shall be provided not more than four days after receipt by the beneficiary of the closing statement, or the closing statement shall be deemed approved, except as specified.
 
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.
Colorado
Signed by governor 3/20/09, Chapter 39
Amends the definition of a "residence in foreclosure" under the "Colorado Foreclosure Protection Act" to include a residence that is subject to a mortgage loan that is delinquent or in default but against which a foreclosure action, while authorized, may not yet have been commenced.
 
Signed by governor 3/20/09, Chapter 41
Applies fee caps and procedural requirements for the sale of credit insurance and other products in the "Uniform Consumer Credit Code" (UCCC) to consumer leases. Eliminates statutory fees and allows the administrator of the UCCC to set the fees. Creates an alternative reserve balance for the uniform consumer credit code cash fund of 1/3 of the previous fiscal year's expenditures. Repeals outdated provisions. Includes nonprofit organizations within the definition of a "credit services organization". Updates a disclosure regarding the availability of free credit reports. Exempts providers of debt-management services that are subject to the "Colorado Foreclosure Protection Act" from the "Uniform Debt-Management Services Act."
 
Signed by governor 4/3/09, Chapter 101
Directs the Division of Housing (division) to collect and compile home foreclosure data from each county in the state and to issue a report, at least quarterly, summarizing the information. Specifies the information contained in the report. Requires the division to make the foreclosure report available to the public. Specifies that the information compiled and reported by the division shall be the official foreclosure data for the state. Requires that the state and any political subdivision of the state shall use the division's data when citing state foreclosure statistics. Directs the division, whenever possible, to encourage private entities that cite foreclosure statistics to use the information compiled and reported by the division. Requires the public trustee of each county to provide to the division the foreclosure data necessary for the division to compile the foreclosure report.
 
Signed by governor 4/22/09, Chapter 164
Makes the following changes related to real estate foreclosures: Clarifies mailing lists and amended mailing lists that are used in a foreclosure proceeding and who is included on the lists. Specifies that publication of combined notice shall be a legal notice that meets certain requirements set forth in law. Modifies the documents required to be filed to commence a public trustee foreclosure. Clarifies how a notice of election and demand describes the property and deed of trust. Clarifies when an evidence of debt shall be deemed to be properly indorsed or assigned. Clarifies procedures for the partial release of a deed of trust during a foreclosure. Increases the maximum deposit a public trustee may require at the time of the notice of election and demand. Requires a holder of the evidence of debt (holder) other than a qualified holder, to whom an assignment or transfer is made to provide certain documentation to the officer conducting a foreclosure sale (officer). Prior to recording a notice of election and demand, requires a public trustee to review documents filed in conjunction with the notice. Clarifies to whom a holder is required to send notice of the foreclosure hotline. Clarifies the authority of an officer to continue a sale if an amended mailing list is received after the combined notice has been sent. Eliminates certain limitations on the type of judgment creditor who has a right to cure a default. Requires a person who has filed a notice of intent to cure a default to receive specified notices regarding the amount necessary to cure the default. Modifies how a foreclosure sale is continued if a holder fails to timely respond to a request for a cure statement. Specifies that the untimely submission of an otherwise valid order authorizing a sale does not invalidate a sale that has been held. Reorganizes the form of the bid that a holder or the attorney for the holder is required to submit to the officer. Permits an officer to establish written policies, which are required to be made available to the public, relating to all aspects of a foreclosure sale. Permits an officer to make an earlier determination that a property is not agricultural property. Permits an officer to continue a sale to allow the officer to correct errors in a published combined notice. Requires an officer to continue a sale if the officer failed to publish the combined notice as required by law. Modifies when a public trustee records a withdrawal of the notice of election and demand. Modifies how proceeds of a foreclosure sale in excess of a bid are applied and paid. Eliminates the requirement that the original certificate of purchase be filed prior to a public trustee recording a notice of rescission of sale. Modifies the requirements for a lienor or assignee of a lien to redeem. Requires a holder of a certificate of purchase that is not a qualified holder to submit certain information to an officer as part of a statement of redemption. Requires a redeeming lienor to pay fees and costs as of the date of the statement of redemption. Requires an officer to record the names of the original grantors of the deed of trust being foreclosed in a certificate of purchase or certificate of redemption. Modifies when an officer is required to execute and record a confirmation deed. Specifies how an omitted party's interest is extinguished. Specifies that an officer has no liability or responsibility for unknown damage, debt, or liens when a third party seeks a judicial foreclosure. Modifies the form of a written request to a public trustee to release a deed of trust that is used when the request is made both with and without the production of the evidence of debt.
 
Signed by governor 5/2/09, Chapter 217
Allows for a grant or loan from moneys in the Housing Development Trust Fund to improve, preserve, or expand the supply of affordable housing and to finance foreclosure prevention activities in Colorado as well as to fund the acquisition of housing and economic data necessary to advise the board on local housing conditions.
 
Signed by governor 4/21/09, Chapter 155
Expands the definition of the criminal offense of equity skimming to include the act of continuing to collect rent from a tenant after foreclosure and sale of the property to another person.
 
Signed by governor 6/2/09, Chapter 404
Requires the Division of Housing in the Department of Local Affairs to set qualifications for, train, and retain foreclosure counselors to assist eligible borrowers in the deferment of a foreclosure sale. Requires a notice to be posted on the front door of a property that is the subject of a notice of election and demand that provides information regarding how to pursue a mortgage foreclosure deferment. Requires the notice to be in both English and Spanish and to include information regarding the availability of a foreclosure counselor. Allows an eligible borrower the opportunity to defer a foreclosure sale on a residential property for 90 days. Requires the borrower to contact a foreclosure counselor within 21 days after the notice of election and demand is received by the public trustee of the county in which the property is located. If the holder of the loan receives notice that the borrower is eligible for a loan deferment, requires the holder to defer the foreclosure for 90 days. Specifies criteria for the foreclosure counselor to consider when determining whether an eligible borrower is eligible for a loan deferment with the holder of the loan. Requires a holder to negotiate in good faith with a borrower that a foreclosure counselor has determined is eligible for a loan deferment. Requires the borrower to make payments during the 90-day deferment period. Grants foreclosure counselors immunity from liability.
Connecticut
Failed Joint Favorable deadline 4/3/09
Provides that officers and persons who serve process, summons or attachments with respect to a foreclosure may receive only one service fee when the lis pendens is an attachment to the writ, summons and complaint and that the dollar per page fee is only earned when the copy is in fact made by the officer or person.
 
Failed Joint Favorable deadline 3/12/09
Permits the state to guarantee first mortgage loans that enter foreclosure proceedings between July 1, 2009, and June 30, 2011, provided (1) the bank adjusts the interest rate on any such first mortgage loan to be equal to the United States Treasury rate of a similar term plus two and one-half per cent; (2) such guarantees shall be available only to mortgages held by banks regulated by the state; (3) such guarantees shall not exceed an aggregate amount of $100 million in mortgage value; (4) borrowers of such guaranteed mortgages shall meet all qualification requirements established by the Connecticut Housing Finance Authority, except the requirement that the borrower be a first time homebuyer; and (5) the program shall be managed by the Connecticut Housing Finance Authority within available appropriations.
 
Failed Joint Favorable deadline 3/12/09
Requires individuals selling debt reduction services to (1) clearly describe in a contract the services to be provided, including an analysis of the consumer's debt; (2) provide consumers with a three-day right of cancellation; and (3) document all costs associated with the provision of debt reduction services to prohibit debt reducers from charging upfront or advance fees, prohibits for-profit corporations from providing debt reduction services and to authorize the Banking commissioner to investigate and reduce debt reducer fees that are excessive in relation to common industry fees and the financial benefit received by the consumer for such services.
 
Establishes a task force to study loss mitigation programs administrated by the Connecticut Housing Finance Authority. The task force must report its findings and recommendations to the Banks Committee by January 1, 2010.
 
Overrules the common law doctrine that the lease of a mortgagor's tenant is extinguished upon foreclosure by the mortgagee, and provides other protections for a tenant whose landlord is being foreclosed upon.
 
Provides for a moratorium on mortgage foreclosures of residential real estate until January 1, 2010.
 
Failed Joint Favorable deadline 4/3/09
Requires in any action by a lender for foreclosure of a mortgage on residential real property or an apartment building that the lender attach to the front of the writ, summons and complaint and any lis pendens or notice of foreclosure that has been filed or recorded a form prescribed by the chief court administrator that indicates the name, telephone number and mailing address of the lender and any property management office of the lender in order to provide local code enforcement officials and residents and neighbors of the property or building the ability to promptly contact property custodians of the lender with respect to the deteriorating condition of the real property or building.
 
Authorizes the Connecticut Housing Finance Authority to continue to develop and implement a program for home mortgage refinancing for homeowners facing financial hardships affecting their ability to meet their monthly mortgage obligation, including homeowners with adjustable rate mortgages.
 
Signed by governor 7/9/09, Public Act 09-219
Makes minor changes to the Emergency Mortgage Assistance Program.
 
Failed Joint Favorable deadline 3/12/09
Provides, in the public interest, an emergency mechanism by which courts may assist homeowners who are in foreclosure by restructuring the mortgage.
 
H.B. 7007, Fourth Special Session
Signed by governor 10/5/09, Public Act 09-7
Under current law, courts must issue a foreclosure mediation notice not later than three days after the mortgagee returns the foreclosure writ to the court. The bill specifies that the notice must be provided not later than three business days after the date the mortgagee returns the writ. By law, the court's mediation date notice must be issued to all appearing parties within five business days after the return date. The bill requires the court to issue the date notice three business days after the court receives the mortgagor's appearance and foreclosure mediation certificate forms, if this is later. As under current law, the court cannot schedule mediation if it has not received these forms by 15 days after the return date. By law, the court may refer a foreclosure action brought by a mortgagee to the mediation program at any time as long as the mortgagor has filed an appearance. The bill requires the court to follow the same timeline as would be applicable if the mediation had been formally requested. Specifically, no more than three business days after making the referral, the court must send notice to the appearing parties scheduling the first mediation session within 15 days of the referral.
 
Failed Joint Favorable deadline 4/17/09
Eliminates the exemption from the conveyance tax for foreclosures by decree of sale made pursuant to §49-24 of the general statutes, and to ensure that transfers pursuant to any foreclosure action are subject to the conveyance tax.
 
Clarifies that notice of the availability of foreclosure mediation must be provided on the face of a writ, summons and complaint; and allows judgments of strict foreclosure to be re-opened, by agreement of all appearing parties, for a period of up to four months after judgment has entered.
 
Limits to $100 per hour the amount a person may charge for services provided when the person is appointed by the court to sell residential real property in a foreclosure by sale.
 
Requires individuals selling debt reduction services to (A) clearly describe in a contract the services to be provided, including an analysis of the consumer's debt; (B) provide consumers with a three-day right of cancellation; and (C) document all costs associated with the provision of debt reduction services to prohibit debt reducers from charging upfront or advance fees; prohibits for-profit corporations from providing debt reduction services, and authorizes the Banking commissioner to investigate and reduce debt reducer fees that are excessive in relation to common industry fees and the financial benefit received by the consumer for such services. Includes foreclosure rescue services.
 
Signed by governor 7/9/09, Public Act 09-209
Changes the process for determining eligibility for the Emergency Mortgage Assistance Program (EMAP) by (1) allowing the Connecticut Housing Finance Authority (CHFA) to determine what constitutes a significant reduction in a borrower's income and (2) expanding the circumstances that constitute a financial hardship beyond a borrower's control and changing some of the conditions for repayment. It allows borrowers to apply for the program before they receive notice of intent to foreclose under certain circumstances. It specifies the circumstances under which the lender may proceed with the foreclosure. The bill expands eligibility for the CT FAMILIES refinancing program from homeowners with adjustable rate mortgages to also include those with fixed-rate mortgages. Makes the foreclosure mediation program established under PA 08-176 mandatory, rather than optional, for actions with return dates on and after July 1, 2009. To that end, the bill changes the mechanism by which borrowers are notified and mediation sessions scheduled and makes other conforming changes. The bill also sets requirements for disclosures made during the mediation. Specifies that no judgment of strict foreclosure or foreclosure by sale can be entered before July 1, 2010 unless the mediation period has expired or otherwise terminated, whichever is earlier, or the mediation program is not otherwise required or available. By law, lenders must appear in person at the first mediation session and be authorized to agree to a proposed settlement. If the lender's attorney appears instead, he or she must have such authority, and the lender must be available by phone or electronic means. The bill specifies that the court cannot award attorney's fees to any lender for time spent in the first mediation session if it does not comply with this requirement, unless the court finds reasonable cause for it. The bill also allows judgments of strict foreclosure to be opened after title has become absolute under certain circumstances.
 
Signed by governor 6/25/09, Public Act 09-144
Creates a registration system for tracking the owners of uninhabited one- to four-family dwellings obtained by strict foreclosure or foreclosure by sale (“registrants”). It specifically allows municipalities to enforce against a registrant any provision of the statutes or municipal ordinance on the repair or maintenance of real estate after the municipality has provided notice and an opportunity to remedy the situation. Prohibits municipalities from imposing registration requirements outside of the bill unless they were in effect before the bill's effective date. It also prohibits municipalities from adopting an ordinance or regulation on the property maintenance activities of a person who obtained title by foreclosure. However, any such ordinances or regulations adopted before the bill's effective date remain in effect and municipalities can enact or enforce ordinances or regulations that apply generally to all property owners. The bill also provides that these provisions do not prohibit or limit a municipality from adopting or enforcing an ordinance or regulation adopted under statutes relating to (1) the prevention of housing blight, (2) the maintenance of safe and sanitary housing, or (3) the abatement of nuisances.
 
Failed Joint Favorable deadline 3/12/09
Provides that when the court appoints a person to make a foreclosure by sale of residential property, the court shall set the fees for such person at $100 per hour.
 
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.
 
Clarifies that written notice of the availability of foreclosure mediation must be on top of the writ, summons and complaint, and allows a judgment of strict foreclosure to be reopened, by agreement of all appearing parties, for a period of up to four months after judgment has been rendered.
 
S.J.R. 15
Failed Joint Favorable deadline 3/12/09
Concerns a resolution urging congress to implement the Homeowners and Bank Protection Act of 2007; encourages Congress to take emergency action to keep people in their homes and avert social chaos.
Delaware
Signed by governor 10/5/09, Chapter 213
Clarifies that the Debt Management Services Act is intended to regulate providers who negotiate terms or concessions related to an individual’s unsecured debt. Businesses offering to negotiate modification of mortgage loans on behalf of individuals with homes in foreclosure are required to comply with provisions of the “Mortgage Rescue Fraud Protection Act” in 6 Del. C. Chapter 24B.
District of Columbia
Amends the Rental Housing Conversion and Sale Act of 1980 to require that, if the tenant opportunity to purchase a housing accommodation is not provided under the foreclosure exemption, the owner shall provide each tenant and the Mayor with a “Notice of Transfer”; requires that a “Notice of Transfer” pursuant to foreclosure shall also serve to notify the tenant that foreclosure is not a lawful basis for evicting the tenant; clarifies that the existing exemption for a transfer pursuant to a court order or court-approved settlement applies only where an actual contract exists, each affected tenant or tenant organization has received written notice of the opportunity to participate in the action, and the court determines that approval of the exemption under the totality of the circumstances is not contrary to the purposes of the Act.
Florida
Died in committee 5/2/09
Died in committee 5/2/09
Requires the Department of Financial Services (DFS) to establish an Internet registry of vacant, abandoned, or foreclosure-proposed real properties; authorizes DFS to charge registry filing fee; requires lenders to file specified information on such properties; requires lenders and DFS to notify local governments of properties on registry; requires local governments to establish e-mail address for receiving such notices.
 
Died in committee 5/2/09
Died in committee 5/2/09
Died in committee 5/2/09
Authorizes each judicial circuit to establish a mortgage foreclosure diversion pilot program; provides for applicable rules of practice and procedure; requires that when such program exists, conciliation conference must be held before a foreclosure order may be issued in a proceeding concerning owner-occupied residential property; prescribes the time period for such conference; specifies items included in order for such conference.
 
Died in committee 5/2/09
Died in committee 5/2/09
Provides exemption from public records requirements for specified identifying information contained in statewide Internet registry maintained under Vacant or Abandoned Real Property Registration, Maintenance, and Foreclosure Reporting Act; provides exceptions; provides for future review and repeal of exemption; provides statement of public necessity.
 
Died in committee 5/2/09
Died in committee 5/2/09
Requires that a lessor of residential dwelling unit notify the lessee of dwelling unit whether dwelling unit that is subject of rental agreement is or is not in foreclosure or in short-sale status and whether mortgage lender intends to initiate foreclosure proceedings or short-sale procedures within specified time; requires that notice be included in rental agreement; provides form for notice.
 
Died in committee 5/2/09
Died in committee 5/2/09
Designates the act as the "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 the DBPR to adopt rules relating to appraisal methods.
 
Died in committee 5/2/09
Requires clerk of court to furnish certain documents and notices to certain occupants of property involved in foreclosure proceeding; provides fees; provides exception; requires landlord to return tenant's security deposit after foreclosure sale; provides penalty; requires landlord to provide notice to tenant of pending foreclosure proceeding; provides legislative findings.
 
Died in committee 5/2/09
Relates to the termination of a rental agreement at foreclosure; prohibits landlord from terminating rental agreement without specified period of prior notice; requires landlord to notify each tenant that foreclosure proceedings have been initiated against premises of which tenant's dwelling unit is part; requires written notice to include specified information; authorizes tenant to terminate rental agreement; requires tenant to pay rent so long as tenant remains in dwelling unit.
 
Died in committee 5/2/09
Died in committee 5/2/09
Excludes from the definition of the term "foreclosure-rescue consultant" a person or entity employed or engaged, directly or indirectly, by the holder of an obligation or lien on any residential real property in foreclosure, an attorney in the course of the practice of law, and title insurers and title agents and agencies that are licensed or admitted under the Florida Insurance Code and providing limited services.
 
Died in committee 5/2/09
Urges Congress to enact Homeowners and Banks Protection Act.
 
Died in committee 5/2/09
Requires a lienholder to serve a certain notice on a homestead owner before a foreclosure sale. Specifies that the notice must inform of bankruptcy as a potential alternative to foreclosure and warning against foreclosure "saving" schemes. Provides for an affirmative defense from foreclosure for failure to provide notice. Amends a provision relating to the required service of notice of potential relief through bankruptcy.
 
Died in committee 5/2/09
Prohibits a landlord from terminating the rental agreement without a specified period of prior notice. Requires a landlord to notify each tenant that foreclosure proceedings have been initiated against the premises of which his or her dwelling unit is a part. Requires the tenant to pay rent so long as the tenant remains in the dwelling unit.
 
Combined with S.B. 1646 4/1/09
Requires the landlord or the landlord's agent to notify the mortgagee in writing within a specified period that the premises is being rented as a dwelling unit. Requires the landlord to give a copy of the notice to the tenant at the time the landlord notifies the mortgagee. Requires the landlord or the landlord's agent to notify the mortgagee of any change in the rental arrangement.
 
Died in committee 5/2/09
Requires the clerk of court to furnish certain notices to tenants in a foreclosure case. Requires a landlord to pay over the deposit after a foreclosure sale. Provides grounds for termination of a lease upon the setting of a foreclosure sale. Creates a pilot program for voluntary mediation between a mortgagor and a mortgagee prior to a foreclosure suit being filed.
 
Died in committee 5/2/09
Requires a landlord to notify each tenant within a specified time that a foreclosure proceeding has been initiated against the premises of which the tenant's dwelling unit is a part. Authorizes the tenant to terminate the rental agreement after receiving notice of the foreclosure proceeding. Provides that the landlord is subject to a civil penalty for a violation of the act.
 
Died in committee 5/2/09
Authorizes counties and eligible municipalities to use funds from the State Housing Initiatives Partnership Program to provide relocation grants for persons who are evicted from rental properties that are in foreclosure. Provides eligibility requirements for receiving a grant. Provides that authorization for the relocation grants expires July 1, 2010.
Georgia
Relates to the recording of foreclosures and deeds under power and notations of sale in the records, so as to provide for the timely filing of a deed following the foreclosure; provides for civil penalties for the failure to timely file such deed.
 
Amends Article 5 of Chapter 8 of Title 16 of the Official Code of Georgia Annotated, relating to residential mortgage fraud, so as to modify certain provisions relating to the offense of residential mortgage fraud; provides for legislative intent; provides for definitions; includes in the criminal offense of residential mortgage fraud an act of fraud committed upon homeowners during or threatened with foreclosure.
 
Signed by governor 5/11/09, Act 260
Relates to the imposition, rate, and computation of income tax, so as to provide for an income tax credit for a limited period of time for the purchase of one eligible single-family residence; provides for conditions and limitations; provides for powers, duties, and authority of the state revenue commissioner with respect to the foregoing.
 
Relates to property, so as to prohibit sheriffs or deputies thereof from turning out debtors or tenants in certain cases unless certain notice requirements have been met; changes certain provisions relating to sales made on foreclosure under power of sale, manner of advertisement and conduct necessary for validity, and filing; changes certain provisions relating to sales made on foreclosure under power of sale, mailing or delivery of notice to debtor, and procedure.
 
Relates to ad valorem taxation of property, so as to provide that foreclosure sales and distressed sales shall be taken into account in the determination of fair market value for purposes of taxation.
 
Establishes the "Stop Mortgage Foreclosure Rescue Fraud Act of 2009"; amends Article 7 of Chapter 14 of Title 44 of the Official Code of Georgia Annotated, relating to foreclosure, so as to provide for homeowner relief from unfair practices related to foreclosure and foreclosure rescue schemes; provides for monetary penalties.
 
Amends Article 7 of Chapter 14 of Title 44 of the Official Code of Georgia Annotated, relating to foreclosures, so as to enact the "Georgia Foreclosed Property Upkeep Act"; provides for a short title; provides for legislative declarations; provides for a bond for properties purchased at foreclosure; provides procedures relating to such bond.
 
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.
 
Requests that the United States Congress pass legislation that comprehensively addresses the needs of subprime consumers and eliminates unnecessary home mortgage foreclosures.
 
Signed by governor 4/14/09, Act 9
Relates to ad valorem taxation of property, so as to change the factors required to be considered in determining fair market value of real property.
 
Passed Senate 3/10/09
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.
 
Relates 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 Code §44-14-162.2 of the Official Code of Georgia Annotated, relating to sales made on foreclosures under power of sale, so as to provide for notice to the occupant of the property of an impending sale of the property.
 
Signed by governor 5/4/09, Act 106
Changes provisions relating to foreclosures and deficiency judgments; 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; provides for filing documents when a deficiency judgment is sought; 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 recording of documents relating to sales under power and deficiency judgments.
Hawaii
Requires notification of mortgage foreclosure to the tenant of rental property by the successor in interest prior to termination of the rental agreement and commencement of summary possession proceedings. Provides that holdover tenants are liable to the successor in interest for the pro-rated share of rent and other charges authorized under the previous rental agreement, for each day the tenant remains in possession up until the commencement of summary possession proceedings, after which higher charges authorized under existing law apply.
 
Passed House 3/10/09
Excludes licensed real estate brokers and salespersons from the definition of distressed property consultants in the Mortgage Foreclosure Rescue Fraud Prevention Act. Prohibits certain conduct relating to the acquisition of an ownership interest in distressed property by licensed real estate brokers and salespersons.
 
Excludes licensed real estate brokers and salespersons from the definition of "distressed property consultant" in the Mortgage Foreclosure Rescue Fraud Prevention Act, and adds to real estate licensing laws prohibitions against certain conduct by licensed real estate brokers and salespersons that specifically relate to distressed property.
 
Allows more time to a defaulting mortgagor facing foreclosure.
 
Requires that tenants of rental property be given sixty days written notice to vacate when the rental property is sold in foreclosure. Requires that tenants of rental property be notified when foreclosure proceedings have begun on the rental property.
 
Requires landlord to give tenant prior notice of a foreclosure action and 30-day notice of foreclosure sale.
 
Requires mortgagees to provide notice to tenants of foreclosure and give them 45 days from the date of notice to vacate when their rental property is disposed of in either a judicial or non-judicial foreclosure.
 
Makes a mortgagee in possession or purchaser of residential rental property that has been foreclosed upon subject to a rental agreement between the previous landlord and a tenant.
 
Excludes public accountants as distressed property consultants.
 
Requires the circuit court to provide written notification to parties to a foreclosure action for a specified period prior to the issuance of a judgment. Takes effect on July 1, 2009, and sunsets June 30, 2010.
 
Passed House 3/10/09
Signed by governor 4/30/09, Act 38
Enables the Hawaii housing finance and development corporation to more easily collect the value of shared appreciation equity and other restrictions when an affordable housing property is publicly sold through a foreclosure. Requires written notification of intent to foreclose on properties encumbered by such priority liens.
 
Excludes real estate licensees from the definition of distressed property consultant in Act 137, Session Laws of Hawaii 2008, the Mortgage Foreclosure Rescue Fraud Prevention Act, and adds to §467-14, Hawaii Revised Statutes, prohibitions against certain conduct by real estate licensees that specifically relate to distressed property.
 
Amends Act 137, Session Laws of Hawaii 2008, to include exemption language for certain professionals and agreements consistent with purpose of Act.
 
Makes various amendments to the Mortgage Rescue Fraud Prevention Act.
 
Requires mortgagors and mortgagees to explore options to avoid foreclosure, including modification or restructuring of loans; effective on approval and repeals 12/31/2012. Requires notice of foreclosure be given to a tenant of the foreclosed property with the option to keep rental agreement in full force or vacate premises in 60 days.
 
Urges the United States Congress to consider adopting new homeowner lending standards for mortgage lending companies that receive federal aid.
 
Signed by governor 5/20/09, Act 66
Excludes licensed real estate brokers and salespersons from the definition of distressed property consultants in the Mortgage Foreclosure Rescue Fraud Prevention Act. Prohibits certain conduct relating to the acquisition of an ownership interest in distressed property by licensed real estate brokers and salespersons.
 
Signed by governor 5/26/09, Act 73
Amends definition of "distressed property consultant" to add certified public accountants to the list of exclusions.
 
Authorizes the Hawaii public housing authority to establish a shelter in place pilot program to provide a subsidy, including grants, loans, and no-interest loans, to low- and moderate-income homeowners and renters that are at risk of losing their home or rental due to a job loss or loss of work hours; authorizes the authority to contract the services; appropriates moneys.
 
Requires foreclosing lender to give notice to tenants of rental housing units facing foreclosure before tenant may be served with an eviction notice. Requires landlords to give notice of pending foreclosure to tenants of dwelling units. Provides remedies.
 
Excludes real estate brokers and real estate salespersons from the definition of "distressed property consultant."
 
Grants owner-occupants of residential real property the right to engage in mediation with a mortgagee in order to prevent foreclosure of the residential property. Establishes notice requirements.
 
Requires mortgagors and mortgagees to explore options to avoid foreclosure, including modification or restructuring of loans; effective on approval and repeals 12/31/2012. Requires notice of foreclosure be given to a tenant of the foreclosed property with the option to keep rental agreement in full force or vacate premises in 60 days.
Idaho
Signed by governor 4/8/09, Chapter 136
Amends existing law relating to liens and foreclosures to delete the requirement that a certain notice be on canary yellow or some similarly colored yellow paper.
 
Creates an alternative deed of trust foreclosure process as it relates to guarantors of obligations of deeds of trust. These amendments would restrict a lender from pursuing the judicial collection of a debt secured by a deed of trust until the borrowers, coobligors and guarantors have been given an opportunity to voluntarily make a public auction sale of the real estate collateral. These amendments also clarify that any proceeds from the sale of foreclosed properties of deeds of trust, regardless of when that sale takes place, must be applied to reduce the outstanding loan balance and hence reduce the liability of borrowers, coobligors and guarantors.
 
Amends existing law relating to foreclosures and deficiency judgments to provide limitations on the institution of certain judicial actions against certain persons, to remove provisions allowing the beneficiary to bring an action without certain consequences, waivers or alternate pleading requirements, to provide that if the beneficiary obtains a judgment, the lien shall not attach to substantially valueless property; to provide against whom a money judgment may be sought, to provide for application of any proceeds received from the property sale, to provide a certain credit against a deficiency owing, to provide for the application of certain limitations to the amount of indebtedness of a guarantor and to provide that any attempt by contract or otherwise to waive any provision of the section shall be void as against public policy.
 
Amends existing law relating to foreclosures and deficiency judgments to provide for but one action against obligors and guarantors for recovery of any debt or the enforcement of any right secured by mortgage upon real estate; to revise how and when the value of mortgaged property is determined, to provide a limitation on a deficiency judgment, to provide for application of proceeds from the sale of the property, to provide a certain credit against a deficiency owing, to apply the protections to certain persons with a qualification, and to provide that any attempt to waive by contract or otherwise any provision shall be void as against public policy.
Illinois
Signed by governor 7/31/09, Public Act 96-0110
Amends the Code of Civil Procedure. Provides that any deed executed pursuant to the Mortgage Foreclosure Article or judgment vesting title by a consent foreclosure shall state the grantee's or mortgagee's name (and the name of a contact person), street and mailing addresses, and telephone number.
 
Amends the Code of Civil Procedure. Provides that in forcible entry or mortgage foreclosure evictions, personal property, which the sheriff deems has commercial value, which was not removed by the defendant from the premises shall be stored by the sheriff at a private storage facility for 30 days, with notice to the defendant personally served or sent by certified mail stating the name, address, and telephone number of the facility; description of the property; and a statement that unless the storage fee is paid within 30 days, the property will be sold or otherwise disposed of. Provides that a sale shall take place not sooner than 30 days after the notice and after a published advertisement that includes: a description of the property; the storage facility address; and the time, place, and manner of the sale or other disposition. Provides that the sale or other disposition shall take place not sooner than 3 days after the advertisement is published. Provides that any sale or other disposition of the property shall be held at the facility or nearest suitable place. Provides that before any sale or other disposition, the defendant may pay the amount necessary to satisfy the storage charges and redeem the personal property. Provides that upon the defendant's payment, the facility shall return the property, and thereafter the facility shall have no liability as to that property. Provides that a good faith purchaser of the property takes it free of any defendant's rights, despite any noncompliance with the Act. Makes other changes.
 
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.
 
Creates the Emergency Foreclosure Relief Act of 2009. Contains only a short title provision.
 
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.
 
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 from moneys received from the foreclosure prevention surcharge collected under the Residential Mortgage License Act of 1987. Provides that 75 percent of the moneys in this Fund shall be used for housing counseling outside Chicago and 25 percent of the moneys shall be used for such counseling in Chicago. Amends the Residential Mortgage License Act of 1987 to increase the investigation and application fees from $2,700 to $3,000.
 
Signed by governor 8/18/09, Public Act 96-0564
Amends the Township Code. Provides that a township may provide for the cutting of grass, the trimming of trees or bushes, and the removal of nuisance trees or bushes (in addition to the cutting of weeds and the maintenance of a retention pond or detention pond). Provides for a lien and recovery of costs. Provides that the lien must be filed within 60 days after the township or a person performing the service by authority of the township incurs the cost of performing the service. Provides that, in addition to any lien or foreclosure action, a township may institute a civil action or proceeding to recover the amount of money owed for the performance of specified services.
 
Amends the Code of Civil Procedure. Provides that in a foreclosure action while the municipality within which the property is located shall not be joined as a party unless joined under other provisions of the Code, the municipality shall be added to the service list in the foreclosure action and all parties shall provide the clerk of the municipality with a copy of any document or notice filed in the foreclosure action.
 
Creates the Home Protection Pilot Program Act. Requires the Illinois Housing Development Authority to implement a pilot program to assist Illinois workers who have lost jobs as a result of changing economic conditions in Illinois when those workers are in need of assistance to avoid losing their homes to foreclosure. Provides that the Program shall include counties selected at the discretion of the Authority on the basis of increased rates of foreclosure, actual foreclosure filings, unemployment, the need of local counseling agencies for increased capacity to serve clients in need of assistance to avoid losing their homes to foreclosure, the availability of funding, and other factors the Authority determines to be relevant. Provides for loans to homeowners secured by liens on residential real property located in Illinois, and prohibits a mortgagee from engaging in certain conduct upon a mortgagor's filing of an application for loan assistance. Sets forth other provisions of the Program. Requires the Authority to conduct a study and to report to the governor and the General Assembly by May 1, 2010.
 
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 5/29/09
Creates the Illinois Land Banking Act. Authorizes a municipality to create a land bank authority. Sets forth the powers of a land bank authority. Authorizes a land bank authority to acquire property and issue bonds. Amends the Property Tax Code. Requires the county clerk to send notice of the sale of real property to the municipal clerk under specified circumstances. Amends the Illinois Municipal Code. Provides that a municipality may prescribe rules, regulations, or ordinances for the maintenance of vacant and abandoned properties. Provides that a municipality may collect the reasonable cost of maintaining vacant and abandoned properties. Amends the Code of Civil Procedure. Provides that a municipality shall be provided notice of foreclosures within the boundaries of the municipality. Sets forth notice requirements. Makes other changes.
 
Signed by governor 8/11/09, Public Act 96-0265
Provides that if any judicial sale is held without complying with the requirements established for the service of a notice of a foreclosure judicial sale, any party entitled to the notice of sale who was not so notified may, by motion supported by affidavit made prior to the confirmation of such sale, ask the court which entered the judgment to set aside the sale (instead of set aside the sale, provided that such party shall guarantee or secure by bond a bid equal to the successful bid at the prior sale). Provides that any such party shall guarantee or secure by bond a bid equal to the successful bid at the prior sale, unless the party seeking to set aside the sale is the mortgagor, the real estate sold at the sale is residential real estate, and the mortgagor occupies the residential real estate at the time the motion is filed. In that event, no guarantee or bond shall be required of the mortgagor.
 
Amends the Code of Civil Procedure. Provides that no 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 shall file a forcible entry and detainer action against a tenant or subtenant (instead of tenant) of the mortgaged real estate until 90 days after a notice of intent to file such action that identifies the tenant or subtenant and the premises (instead of notice of intent to file such action) has been properly served upon the tenant or subtenant and the county housing authority, but if the county has not formed a county housing authority, then upon the county clerk (instead of has been properly served upon the tenant).
 
Signed by governor 8/11/09, Public Act 96-0291
Amends the Homelessness Prevention Act. Provides that assistance offered to households by grantees under the Act shall include payment of a mortgage arrearage in an amount established as necessary to defeat a foreclosure. Provides that program staff shall determine whether the household has remained in the residence in which they were residing at the time assistance was provided, and determine whether the living situation of the household is stable, after the end of each State fiscal year and as determined by the Department of Human Services (instead of 6 months after assistance was provided).
 
Amends Public Act 95-0731. Provides that amounts appropriated from the Predatory Lending Database Program Fund to the Department of Revenue for grants pursuant to the Predatory Lending Database Program, administered by the Illinois Housing Development Authority, may also be expended for grants to any HUD-certified counseling agency in any county for: mortgage default counseling activities listed in the U.S. Department of Housing and Urban Development Housing Counseling Program Handbook; and counseling to a borrower as specified in the Residential Real Property Disclosure Act.
 
Amends the Illinois Worker Adjustment and Retraining Notification Act. Provides that, if an employer orders a mass layoff, relocation, or employment loss and fails to notify employees, then an employee shall be allowed to suspend interest payments on a home mortgage for 180 days and then pay the deferred interest in equal installments over the remaining term of the mortgage loan.
 
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.
 
Signed by governor 7/31/09, Public Act 96-0111
Amends the Code of Civil Procedure. Provides that the homeowner notice attached to the summons in a residential mortgage foreclosure action shall include directions concerning giving written notice to any tenants about the foreclosure and the tenant's right to remain on the premises. Provides that an occupant may file an action for failure to provide notice and recover $200 plus actual damages, attorney's fees, and costs. Provides that a purchaser of property in a foreclosure must give notice to any occupants of the property that he or she has acquired the mortgaged real estate. Provides that a mortgagor in a foreclosure must notify any occupant or potential occupant of the foreclosure action. Provides that the purchaser of property sold at a court foreclosure sale must provide a notice of rights to occupants of the property within seven days after the confirmation of the sale. Provides that until the rights of possession of all occupants of foreclosed property have been terminated, the purchaser of foreclosed property must maintain the property in a condition that is safe, healthful, and fit for occupancy. Provides that a receiver shall give similar written notices and may not increase the rent without leave of court. Provides that the court may allow a rent increase by a receiver or a mortgagee in possession if it finds that an increase is necessary to operate the property, after notice to all occupants affected by an increase, but nothing in the Act shall alter the lease. Makes other changes. Further amends the Mortgage Foreclosure Article of the Code of Civil Procedure in relation to residential property foreclosures. Makes various changes regarding the duty of a holder of the certificate of sale or deed, a purchaser, a mortgagee in possession, and a receiver to: make a diligent inquiry to ascertain the identities and addresses of all occupants of dwelling units of the mortgaged real estate and notify all known occupants of dwelling units of the mortgaged real estate that he or she has acquired the mortgaged real estate; provide a notice of rights and information about the new ownership advising where inquiries about rent or property repairs may be made and the notices shall be posted at common entrances or at the primary entrance of each dwelling unit; maintain utility services that had been the owner's obligation; and maintain the property. Provides that a holder or purchaser and an occupant may enter into a new lease that changes the respective utility obligations. Provides that, in a foreclosure action filed on or before the effective date of the Act, a holder or purchaser, receiver, or mortgagee in possession required to serve notice or otherwise comply with specified provisions shall have an additional 60 days to comply with the Act. Makes other changes.
 
Signed by governor 8/13/09, Public Act 96-0408
Amends the Criminal Code of 1961. Creates the offense of unlawful manipulation of a judicial sale. Provides that a person commits the offense when he or she knowingly and by any means makes any contract with or engages in any combination or conspiracy with any other person who is, or but for a prior agreement is, a competitor of such person for the purpose of or with the effect of fixing, controlling, limiting, or otherwise manipulating (1) the participation of any person in, or (2) the making of bids, at any judicial sale. Provides that unlawful manipulation of a judicial sale is a Class 3 felony. Provides that a mandatory fine shall be imposed for a violation, not to exceed $1,000,000 if the violator is a corporation, or, if the violator is any other person, $100,000. Provides that a second or subsequent violation is a Class 2 felony. Establishes injunctive relief and a private right of action for damages or injunctive relief.
 
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.
 
Amends the Code of Civil Procedure. Provides that during a foreclosure action, a forcible entry and detainer action may not by filed for any portion of the same property.
 
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.
 
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.
 
Amends the Code of Civil Procedure. Provides that in counties with a population of 3 million or more, the demand for possession or for rent required in a forcible entry and detainer action, and the notice of foreclosure, foreclosure complaint, and notice of judicial sale in mortgage foreclosure proceedings, shall state the name and birth date of each known occupant of the premises and each known occupant with a disability. Provides that a judgment of foreclosure may include special matters including, but not limited to, in counties with a population of three million or more, whether any known occupant is age 14 or younger, age 65 or older, or disabled.
 
Amends the Code of Civil Procedure. Provides that "mortgagee" means (i) the holder of an indebtedness or obligee of a non-monetary obligation secured by a mortgage (instead of holder of an indebtedness or obligee of a non-monetary obligation secured by a mortgage or any person designated or authorized to act on behalf of such holder) and (ii) any person claiming through a mortgagee as successor. 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 or the trustee under a trust deed (instead of 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 mortgagee, as defined in the Act. 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 as legal holder of the indebtedness or the trustee of a trust deed 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 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.
 
To Senate for concurrence 5/31/09
Amends the Illinois Municipal Code. In Sections concerning the removal of nuisances by the corporate authorities of a municipality, provides for a uniform method of filing a lien to recover the costs of removing specified nuisances. Includes the removal costs of (i) cutting and removing neglected weeds, grass, trees, and bushes, (ii) controlling pests, (iii) removing infected trees, and (iv) removing garbage and debris. Sets forth a lien procedure for the removal of specified nuisances from an abandoned residential property. Provides that provisions concerning specified liens are inoperative or repealed on the earlier of December 31, 2013, or upon certification by the Secretary of the Illinois Department of Financial and Professional Regulation that the Mortgage Electronic Registration System program is effectively registering mortgaged residential properties located within the State, is available, without charge, by municipalities in the State, and includes the mortgage servicer's telephone number. Amends the Code of Civil Procedure. Requires that notice of foreclosure be provided to the municipality within the boundary of which the property is located or to the county under specified circumstances. Sets forth notice requirements. Contains other provisions. Makes other changes. Amends the Illinois Banking Act. Provides that in no event shall the total amount of specified stock held by a bank in such bank or holding company exceed 10 percent of its capital and surplus and in no event shall a bank acquire more than 15 percent (rather than 5 percent) of any class of voting securities of such bank or company. Amends the Residential Real Property Disclosure Act. Provides that a predatory lending database program shall be established within Cook, Kane, and Will counties (instead of Cook County). Provides that the inception date of the program as it applies to Kane and Will counties shall be January 1, 2010. Makes other changes.
 
Signed by governor 7/23/09, Public Act 96-0060
Amends the Code of Civil Procedure. Provides that no judgment for possession obtained in a forcible entry action may be enforced more than 120 (instead of 90) days after judgment is entered, unless upon plaintiff's motion the court grants an enforcement period extension. Provides that the plaintiff's notice of motion shall contain a notice to the defendant that states that the landlord obtained an eviction judgment against the defendant, but the sheriff did not evict the defendant within the 120 (instead of 90) days that the landlord has to evict after a judgment. Makes corresponding change to 120 days (instead of 90 days) in a provision addressing an order of possession following a hearing and supplemental petition.
 
Amends the Code of Civil Procedure. Provides that a court may order expungement of a court file in a forcible entry and detainer action if the court finds that the plaintiff's action is sufficiently without a basis in fact or law, which may include a lack of jurisdiction, that expungement is in the interests of justice and those interests are not outweighed by the public's interest in knowing about the record. Requires a court to order expungement of a court file in a forcible entry and detainer action if the court finds that the defendant occupied real property that was subject to contract for deed cancellation or mortgage foreclosure, and either: the time for contract cancellation or foreclosure redemption has expired and the defendant vacated the property prior to commencement of the forcible entry and detainer action; or the defendant was a tenant during the contract cancellation or foreclosure redemption period and did not receive a notice to vacate on a date prior to commencement of the forcible entry and detainer action.
 
Signed by governor 12/31/09, Public Act 96-0856
Amends the Illinois Municipal Code. Changes provisions regarding cutting and removal of neglected weeds, grass, trees, and bushes, pest extermination, removal of infected trees, removal of garbage, debris, and graffiti, and liens for removal costs; adds provisions regarding liens for the costs of removal, securing, and enclosing on abandoned residential property and securing or enclosing abandoned residential property; and makes other changes.
 
Amends the Code of Civil Procedure. Provides that the homeowner notice attached to the summons in a residential mortgage foreclosure action shall include directions concerning giving written notice to any tenants about the foreclosure and the tenant's right to remain on the premises. Provides that an occupant may file an action for failure to provide notice and recover $200 plus actual damages, attorney's fees, and costs. Provides that a purchaser of property in a foreclosure must give notice to any occupants of the property that he or she has acquired the mortgaged real estate. Provides that a mortgagor in a foreclosure must notify any occupant or potential occupant of the foreclosure action. Provides that the purchaser of property sold at a court foreclosure sale must provide a notice of rights to occupants of the property within 7 days after the confirmation of the sale. Provides that until the rights of possession of all occupants of foreclosed property have been terminated, the purchaser of foreclosed property must maintain the property in a condition that is safe, healthful, and fit for occupancy. Provides that a receiver shall give similar written notices and may not increase the rent without leave of court. Provides that the court may allow a rent increase by a receiver or a mortgagee in possession if it finds that an increase is necessary to operate the property, after notice to all occupants affected by an increase, but nothing in the Act shall alter the lease. Makes other changes.
 
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.
 
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.
 
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.
 
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 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).
Indiana
To conference committee 4/15/09
Requires the owner or former owner of residential real property containing four or fewer rental units to notify the tenants if a judgment of foreclosure is entered concerning the property, and permits a tenant to terminate a rental agreement if a judgment of foreclosure is entered against the owner or former owner. Authorizes a tenant to bring a civil action if the owner or former owner does not comply with the notice provisions, and provides that a tenant who terminates a rental agreement early in compliance with the statute does not forfeit the damage deposit due to the early termination, but may still be liable for actual damages. Specifies that the notice provisions do not apply to: (1) an action in which the plaintiff states in the complaint that the foreclosure will not affect the rights of a nondefaulting tenant; and (2) real property where a receiver has been appointed. Makes conforming amendments.
 
Signed by governor 4/30/09, Public Law 52
Provides that in the case of a first lien mortgage transaction or a home loan that: (1) is closed after June 30, 2009; and (2) has an interest rate that is subject to change during the term of the loan; the creditor may not contract for and may not charge the debtor or borrower a prepayment fee or penalty. Provides that a person shall not corrupt or improperly influence, or attempt to corrupt or improperly influence, a real estate appraiser or an appraisal. Provides that a proposed new notice that is to be: (1) prescribed by the attorney general's homeowner protection unit; and (2) provided by a creditor to a prospective borrower not later than three business days after the creditor's receipt of the borrower's mortgage loan application; must include a statement of a borrower's right under the federal Real Estate Settlement Procedures Act to inspect the HUD-1 or HUD-1A settlement statement during the business day immediately preceding settlement. Provides that the annual report provided by the mortgage lending and fraud prevention task force to the legislative council must include the following information for the most recent state fiscal year: (1) The number of complaints or reports received by the unit concerning suspected violations of the prohibition against corrupting or improperly influencing a real estate appraiser or an appraisal. (2) A breakdown of the sources of the complaints or reports, based on the complainants' interest in or relationship to the real estate transactions upon which the complaints or reports are based. (3) A description of any disciplinary or enforcement actions taken, or criminal prosecutions pursued, in connection with the complaints or reports received. Sets forth certain penalties and enforcement procedures for violations of the provisions concerning real estate appraisals. Requires a foreclosure consultant to retain all records related to services performed on behalf of a homeowner for at least three years after the termination or conclusion of the foreclosure consultant contract. Prohibits a person from engaging in, or soliciting to engage in, a real estate or mortgage transaction without a permit or license required by law. Prohibits a person from making certain representations with respect to: (1) a mortgage or real estate transaction; or (2) the property that is the subject of the transaction; if the representation is not true and the person knows or reasonably should know that the representation is not true. Provides that a practitioner of a licensed profession who has been subjected to disciplinary sanctions by the board that regulates the profession may be required to pay the costs of any real estate review appraisal obtained in connection with the disciplinary proceedings. Provides that a violation of the statutes concerning: (1) credit service organizations; and (2) mortgage rescue protection fraud; by a person licensed or required to be licensed as a real estate salesperson or broker is a violation of the statute governing the regulation of real estate salespersons and brokers and is subject to certain specified enforcement procedures and sanctions. Specifies that the board that regulates a licensed profession may not approve the surrender of a practitioner's license if the attorney general's office: (1) has filed an administrative complaint concerning the practitioner's license; and (2) opposes the surrender.
 
Passed House 2/25/09
Provides that if the total amount in the investigative fund administered by the attorney general and the professional licensing agency to investigate real estate and real estate appraisal fraud exceeds $750,000 at the end of a state fiscal year: (1) 50 percent of the amount exceeding $750,000 remains in the fund; and (2) 50 percent of the amount exceeding $750,000 shall be deposited in the home ownership education account administered by the authority. Establishes the home ownership preservation task force that consists of: (1) the director of the department; (2) the executive director of the authority; and (3) 13 voting members appointed by the governor. Provides that the director of the department and the executive director of the authority serve as co-chairs and nonvoting members of the task force. Requires the task force to conduct at least five meetings before November 15, 2009, and to do the following: (1) Identify new sources of federal funding that can be used to assist Indiana homeowners or communities that are affected by residential mortgage loan foreclosures. (2) Identify any other new or existing sources of federal, state, or private funding that can be used for, or redirected to, those purposes. (3) Identify methods and sources of available funding to promote the authority's mortgage foreclosure counseling and education program. (4) Make recommendations for any state legislation, rules, or programs that the task force determines are necessary to assist Indiana homeowners or communities that are affected by residential mortgage loan foreclosures. Requires the task force to submit a report to: (1) the legislative council; and (2) the members of the legislative standing committees that have jurisdiction over legislation concerning financial institutions. Establishes the pro bono foreclosure assistance task force that consists of: (1) the chief justice of the supreme court, or the chief justice's designee, who serves as chair of the task force; (2) the president of the Indiana state bar association, or the president's designee; and (3) 15 members appointed by the chief justice. Requires the task force to determine the feasibility of developing, implementing, administering, and promoting a statewide program to provide pro bono legal assistance to Indiana home owners involved in foreclosure proceedings filed in Indiana courts. Requires the task force to report its findings and recommendations to: (1) the legislative council; and (2) the members of the legislative standing committees that have jurisdiction over legislation concerning financial institutions.
 
Passed House 2/25/09
Provides that in the case of a residential mortgage transaction in which the debtor defaults after June 30, 2009, the creditor shall provide a written notice to the debtor that informs the debtor of the default and offers the debtor the opportunity to participate in a conference with the creditor to negotiate a foreclosure prevention agreement. Requires the debtor to contact the creditor not later than 30 days after the date of the notice to schedule a conference. Provides that the debtor has the right to be represented by an attorney or a mortgage foreclosure counselor at the conference. Requires the creditor to ensure that any person representing the creditor at the conference or in any negotiations with the debtor has authority to bind the creditor. Upon the conclusion of a conference, requires the creditor to report to the housing and community development authority (authority) on whether the parties were able to agree on the terms of a foreclosure prevention agreement. Provides that after June 30, 2009, a creditor may not proceed to file a residential mortgage foreclosure action unless: (1) the creditor has given the required notice offering a conference to the debtor; (2) either the debtor did not respond to the creditor's notice not later than 30 days after the date of the notice, or the parties were unable to negotiate a mortgage prevention agreement after a conference is held; and (3) at least 90 days have elapsed since the date of the creditor's notice. Provides that in a residential mortgage foreclosure action filed after June 30, 2009, the court may not enter a judgment of foreclosure until 60 days after the date the complaint is filed, in a case in which the debtor did not respond to the creditor's notice not later than 30 days after the date of the notice.
 
To conference committee 4/20/09
Provides that in the case of a residential mortgage transaction in which the debtor defaults after June 30, 2009, the creditor shall, before filing an action for foreclosure, provide a presuit notice to the debtor that informs the debtor that the creditor intends to initiate foreclosure proceedings, that the debtor may obtain assistance from a foreclosure counselor, and that provides information on how to contact a counselor. Establishes certain exceptions to the presuit notice requirement. Provides that, if a creditor files an action for foreclosure, the creditor shall include with the complaint a notice to the debtor that informs the debtor of the debtor's right to participate in a settlement conference, and that if the debtor wishes to participate in a settlement conference, the debtor must contact the court not later than 30 days after notice is served. Provides that a court may not render a judgment of foreclosure until 60 days after the notice is filed, unless the premises are vacant. Specifies that, if a settlement conference is conducted: (1) it must be scheduled between 25 and 60 days after the notice is sent; (2) the debtor must contact a foreclosure counselor before the conference and bring certain documents to the conference; (3) the creditor must bring a complete transaction history to the conference; (4) the creditor's agent must have the authority to negotiate with the creditor; and (5) the conference will be conducted by telephone unless the parties make a contrary stipulation. Provides that the court may require any person who is a party to the action to participate in a settlement conference, and that the court may reconvene a settlement conference. Requires the creditor to file a copy of the foreclosure prevention agreement with the court if the parties reach an agreement, and provides that a foreclosure action may be stayed or dismissed for as long as the debtor complies with the terms of the foreclosure agreement. Specifies that if a foreclosure is dismissed and the debtor defaults in the terms of the foreclosure agreement, the creditor may bring a new foreclosure action without being required to send certain notices. Provides that participation in a settlement conference satisfies any mediation or alternative dispute resolution requirement established by court rule. Makes other changes and conforming amendments. Provides that certain notice of foreclosure requirements apply to all mortgagees. Requires a foreclosure consultant to retain certain records for a specific time. Allows certain licensing boards to require practitioners to pay real estate appraisal costs in certain administrative actions. Prohibits certain professional licensing boards from accepting the surrender of a practitioner's license if the attorney general has filed a complaint against the practitioner and opposes the surrender. Provides that a broker or salesperson licensee who violates the credit services organizations or mortgage rescue protection fraud provisions is subject to certain disciplinary actions. Prohibits a person from: (1) engaging in real estate transactions or consumer credit mortgage transactions without a permit or license; or (2) misrepresenting certain terms and characteristics of real estate transactions and consumer credit mortgages; and subjects a person who violates any of these prohibitions to certain penalties under the home loan practices law. Removes language prohibiting a person from engaging in a deceptive act in connection with certain loans. Creates a $50 court fee, on persons filing an action to foreclose a mortgage, applicable to actions filed after June 30, 2009, and before January 1, 2013, for purposes of providing sufficient money to provide foreclosure prevention counseling and assistance programs.
 
Amends the law concerning the disclosures that a credit service 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. Amends the statute concerning mortgage rescue protection fraud to provide that certain: (1) financial institutions; (2) government sponsored enterprises; (3) government agencies; and (4) other persons; are subject to the requirement that a mortgagee provide certain notice to a mortgagor at the time of filing a complaint in a foreclosure action. Requires a foreclosure consultant to retain all records related to services performed on behalf of a homeowner for at least three years after the termination or conclusion of the foreclosure consultant contract. Prohibits a person from engaging in, or soliciting to engage in, a real estate or mortgage transaction without a permit or license required by law. Prohibits a person from making certain representations with respect to: (1) a mortgage or real estate transaction; or (2) the property that is the subject of the transaction; if the representation is not true and the person knows or reasonably should know that the representation is not true. Provides that the board that regulates a licensed profession may not approve the surrender of a practitioner's license if the attorney general's office: (1) has filed an administrative complaint concerning the practitioner's license; and (2) opposes the surrender. Provides that a practitioner who has been subjected to disciplinary sanctions may be required to pay the costs of any real estate review appraisal obtained in connection with the disciplinary proceedings. Provides that a violation of the statutes concerning: (1) credit service organizations; and (2) mortgage rescue protection fraud; by a person licensed or required to be licensed as a real estate salesperson or broker is a violation of the statute governing the regulation of real estate salespersons and brokers and is subject to certain specified enforcement procedures and sanctions.
 
Passed Senate 1/27/09
Requires the owner of commercial or residential real property containing a rental unit to notify the tenants if a judgment of foreclosure is entered concerning the property, and permits a tenant to terminate a rental agreement if a judgment of foreclosure is entered against the owner. Authorizes a tenant to bring a civil action if the owner does not comply with the notice provisions, and provides that a tenant who terminates a rental agreement early in compliance with the statute does not forfeit the damage deposit due to the early termination, but may still be liable for actual damages. Specifies that the notice provisions do not apply to: (1) commercial leases of more than three years; (2) commercial leases in which the tenant has been named as a defendant in the foreclosure action; and (3) real property where a receiver has been appointed.
 
Provides that certain notice of foreclosure requirements apply to all mortgagees.
 
Signed by governor 5/7/09, Public Law 105
Requires a foreclosure consultant to retain all records and documents related to services performed on behalf of a homeowner for at least three years after the termination or conclusion of the foreclosure consultant contract. Prohibits a person from engaging in, or soliciting to engage in, a real estate or mortgage transaction without a permit or license required by law. Prohibits a person from making certain representations with respect to: (1) a mortgage or real estate transaction; or (2) the property that is the subject of the transaction; if the representation is not true and the person knows or reasonably should know that the representation is not true. Specifies that the board that regulates a licensed profession may not approve the surrender of a practitioner's license if the attorney general's office: (1) has filed an administrative complaint concerning the practitioner's license; and (2) opposes the surrender. Provides that a practitioner of a licensed profession who has been subjected to disciplinary sanctions by the board that regulates the profession may be required to pay the costs of any real estate review appraisal obtained in connection with the disciplinary proceedings. Provides that a violation of the statutes concerning: (1) credit service organizations; and (2) mortgage rescue protection fraud; by a person licensed or required to be licensed as a real estate salesperson or broker is a violation of the statute governing the regulation of real estate salespersons and brokers and is subject to certain specified enforcement procedures and sanctions. Provides that the electronic system to be established by the department of insurance not later than September 1, 2009, for the collection and storage of certain information concerning persons participating in or assisting with single family residential mortgage transactions must include the names of the buyer and the seller in a first lien purchase money mortgage transaction. Provides that in a foreclosure action that is filed after June 30, 2009, with respect to a first lien residential mortgage transaction, the creditor shall, not later than 30 days before the creditor files the action, send to the debtor a presuit notice, on a form prescribed by the housing and community development authority (authority), that: (1) informs the debtor that the debtor is in default; (2) informs the debtor that the debtor is encouraged to obtain assistance from a mortgage foreclosure counselor; and (3) provides contact information for the Indiana Foreclosure Prevention Network. Provides that in prescribing the form for the presuit notice, the authority must include the statement concerning mortgage foreclosure consultants that mortgagees are required to provide under existing law upon filing a foreclosure action. Provides that if the creditor proceeds to file an action to foreclose the mortgage, the creditor shall include with the complaint served on the debtor a notice that informs the debtor that the debtor: (1) has a right to participate in a settlement conference; and (2) may schedule a settlement conference by notifying the court, not later than 30 days after the notice is served, of the debtor's intent to participate in a settlement conference. Specifies certain circumstances under which a creditor is not required to provide: (1) the presuit notice; and (2) the notice of the debtor's right to a settlement conference. Provides that after June 30, 2009, a court may not issue a judgment of foreclosure with respect to a first lien residential mortgage transaction unless the following apply: (1) The creditor has given the required notice to the debtor of the availability of a settlement conference. (2) The debtor either: (A) does not contact the court within 30 days to schedule a settlement conference; or (B) contacts the court within the required 30 day period to schedule a settlement conference and, upon conclusion of the settlement conference, the parties are unable agree to a foreclosure prevention agreement. (3) At least 60 days have elapsed since the date the presuit notice was sent, unless the mortgaged property is abandoned. Provides an exception to these conditions and to the need for a settlement conference if the court finds that a settlement conference would be of limited value based on the result of a prior loss mitigation effort between the creditor and the debtor. Provides that if the debtor contacts the court to schedule a settlement conference, the court shall issue a notice of a settlement conference to the parties. Provides that the court's notice of a settlement conference must do the following: (1) Order the creditor and the debtor to conduct a settlement conference on or before a date and time specified in the notice. (2) Encourage the debtor to contact a mortgage foreclosure counselor before the settlement conference. (3) Require the debtor to bring to the settlement conference certain documents needed to engage in good faith negotiations. (4) Require the creditor to bring to the settlement conference a transaction history for the mortgage. (5) Inform the parties that each has the right to be represented by an attorney or assisted by a mortgage foreclosure counselor. (6) Inform the parties that the settlement conference will be conducted at the county courthouse, or at another place designated by the court, on the date and at the time specified by the court, unless the parties stipulate otherwise. Requires the creditor to ensure that any person representing the creditor: (1) at a settlement conference; or (2) in any other negotiations with the debtor designed to reach agreement on a foreclosure prevention agreement; has authority to represent the creditor. Provides that if, as a result of a settlement conference, the debtor and the creditor agree to enter into a foreclosure prevention agreement, the agreement shall be reduced to writing and signed by both parties. Provides that at the election of the creditor, the foreclosure shall be dismissed or stayed for as long as the debtor complies with the terms of the foreclosure prevention agreement. After a settlement conference has occurred, requires the creditor to notify the court as to whether a foreclosure prevention agreement has been reached. Provides that participation in a settlement conference satisfies any mediation or alternative dispute resolution requirement established by court rule. Provides that immediately after a foreclosure sale, the sheriff that conducted the sale shall: (1) execute and deliver to the purchaser; and (2) except in a foreclosure action involving a mortgage insured by the United States Department of Housing and Urban Development, record with the recorder of the county in which the premises are located; a deed of conveyance for the premises. Establishes a $50 court fee for mortgage foreclosure actions that are filed after June 30, 2009, and before January 1, 2013. Provides that the fees are to be deposited in the home ownership education account administered by the authority.
 
Provides that certain notice of foreclosure requirements apply to all mortgagees. Requires a foreclosure consultant to retain certain records for a specific time. Allows certain licensing boards to require practitioners to pay real estate appraisal costs in certain administrative actions. Prohibits certain professional licensing boards from accepting the surrender of a practitioner's license if the attorney general has filed a complaint against the practitioner and opposes the surrender. Provides that a broker or salesperson licensee who violates the credit services organizations or mortgage rescue protection fraud provisions is subject to certain disciplinary actions. Prohibits a person from: (1) engaging in real estate transactions or consumer credit mortgage transactions without a permit or license; or (2) misrepresenting certain terms and characteristics of real estate transactions and consumer credit mortgages; and subjects a person who violates any of these prohibitions to certain penalties under the home loan practices law. Removes language prohibiting a person from engaging in a deceptive act in connection with certain loans.
 
Urges the United States Congress to implement the Homeowners and Bank Protection Act.
 
Urges the United States Congress to implement the Homeowners and Bank Protection Act.
Iowa
Provides that a mortgagor's notice of a right to cure shall also include information relating to the availability of a statewide, toll-free telephone mortgage help hotline for use by persons experiencing financial difficulties in making mortgage payments.
 
Substituted 3/18/09
Became H.F. 695 3/12/09
Relates to civil actions including certain limitations on actions, judgments, and executions, and including actions relating to the foreclosure of real estate mortgages, and provides applicability provisions. The bill provides that in an action in which the court had jurisdiction of the aggrieved party, a motion or other legal proceeding attacking the validity of the judgment or decree based on failure to comply with the rules of civil procedure relating to the entry of default judgments shall not affect the interests of any purchaser or mortgagee for value of the real property involved unless the motion or proceeding is initiated within 30 days after the recording of the sheriff's deed or within 90 days after the filing of a judgment or decree not providing for the issuance of a sheriff's deed. The bill provides that, in regard to an execution on a judgment in a foreclosure action, a judgment entered in either of the following situations shall be null and void, all liens shall be extinguished, and no execution shall be issued for any purpose except as a setoff or counterclaim: 1. For a real estate mortgage, deed of trust, or real estate contract executed prior to July 1, 2009, an action for the foreclosure of a real estate mortgage, deed of trust, or real estate contract upon property which at the time the foreclosure is commenced is either used for an agricultural purpose or as a one-family or two-family dwelling which is the residence of the mortgagor, borrower, or vendee. 2. For a real estate mortgage, deed of trust, or real estate contract executed on or after July 1, 2009, an action for the foreclosure of a real estate mortgage, deed of trust, or real estate contract upon property which at the time of the execution of the mortgage, deed of trust, or real estate contract is either used for, or is being acquired for, an agricultural purpose as defined in Code §535.13 or as a one-family or two-family dwelling which is the residence of the mortgagor, borrower, or vendee. The bill provides that a judgment rendered on a promissory obligation secured by a mortgage, deed of trust, or real estate contract executed prior to July 1, 2009, but without foreclosure against the security, shall not be subject to renewal by action thereon, and, after the lapse of two years from the date of judgment, shall be without force and effect except as a setoff or counterclaim, if the mortgage, deed, or contract was upon property which at the time of either the judgment or the commencement of a proceeding foreclosing a prior mortgage or a disposition in lieu of a prior mortgage, was either used for an agricultural purpose or as a one-family or two-family dwelling which was the residence of the mortgagor. A judgment rendered on a promissory obligation secured by a real estate mortgage, deed of trust, or real estate contract executed on or after July 1, 2009, but without foreclosure against the security, shall not be subject to renewal by action thereon, and, after the lapse of two years from the date of judgment, shall be without force and effect except as a setoff or counterclaim, if at the time of the execution of the mortgage, deed, or contract the property encompassed by the mortgage, deed, or contract is either used for, or is being acquired for, an agricultural purpose or as a one-family or two-family dwelling which is the residence of the mortgagor. The bill expands the options for allowing postponements of a sheriff's sale to include allowing a postponement upon a request by a judgment creditor and also extends the number of allowable postponements from two postponements of not more than three days each to two postponements not to exceed a total of 60 days in the aggregate. The bill establishes a provision preserving mortgage protections for a mortgagor in situations where the mortgagor ceases to occupy the mortgagor's residence because of the effects of natural disasters, injuries to the property, and relocations due to military service. This provision applies to all actions commenced on or after the effective date of the bill. The bill provides specific service of process provisions for judgment creditors and their attorneys as well as executors and administrators of a decedent's estate where in rem relief is the only relief requested in a foreclosure action. The bill requires courts to determine the rights of all persons joined as parties or receiving notices of their right to intervene in a foreclosure action where title issues have been raised by the pleadings and resolution of such issues is necessary to provide clear title to persons purchasing the land at a sheriff's sale. The bill amends notice provisions relating to pending foreclosures to require a mortgagee to provide additional information relevant to a judgment creditor's decision to intervene in a foreclosure action. The bill eliminates the requirement that the mortgagor consent to a rescission of a foreclosure action. The bill eliminates deficiency judgments against the mortgagee if such judgments would otherwise be restricted and limits the assessment of costs, including reasonable attorney fees, of foreclosure and rescission actions to those agreed to in writing by the mortgagor. The bill prohibits the use of a nonjudicial foreclosure in circumstances where the real estate that is the subject of the foreclosure is a one-family or two-family home occupied by a legal titleholder. This provision applies to all nonjudicial foreclosures of nonagricultural mortgages commenced on or after the effective date of the bill.
 
Urges the governor of the state of Iowa to declare a state of economic emergency relating to real estate mortgage foreclosures.
 
Signed by governor 4/9/09
Became S.F. 364 3/9/09
Relates to civil actions including certain limitations on actions, judgments, and executions, and including actions relating to the foreclosure of real estate mortgages, and provides applicability provisions. The bill provides that in an action in which the court had jurisdiction of the aggrieved party, a motion or other legal proceeding attacking the validity of the judgment or decree based on failure to comply with the rules of civil procedure relating to the entry of default judgments shall not affect the interests of any purchaser or mortgagee for value of the real property involved unless the motion or proceeding is initiated within 30 days after the recording of the sheriff's deed or within 90 days after the filing of a judgment or decree not providing for the issuance of a sheriff's deed. The bill provides that, in regard to an execution on a judgment in a foreclosure action, a judgment entered in either of the following situations shall be null and void, all liens shall be extinguished, and no execution shall be issued for any purpose except as a setoff or counterclaim: 1. For a real estate mortgage, deed of trust, or real estate contract executed prior to July 1, 2009, an action for the foreclosure of a real estate mortgage, deed of trust, or real estate contract upon property which at the time the foreclosure is commenced is either used for an agricultural purpose or as a one-family or two-family dwelling which is the residence of the mortgagor, borrower, or vendee. 2. For a real estate mortgage, deed of trust, or real estate contract executed on or after July 1, 2009, an action for the foreclosure of a real estate mortgage, deed of trust, or real estate contract upon property which at the time of the execution of the mortgage, deed of trust, or real estate contract is either used for, or is being acquired for, an agricultural purpose as defined in Code §535.13 or as a one-family or two-family dwelling which is the residence of the mortgagor, borrower, or vendee. The bill provides that a judgment rendered on a promissory obligation secured by a mortgage, deed of trust, or real estate contract executed prior to July 1, 2009, but without foreclosure against the security, shall not be subject to renewal by action thereon, and, after the lapse of two years from the date of judgment, shall be without force and effect except as a setoff or counterclaim, if the mortgage, deed, or contract was upon property which at the time of either the judgment or the commencement of a proceeding foreclosing a prior mortgage or a disposition in lieu of a prior mortgage, was either used for an agricultural purpose or as a one-family or two-family dwelling which was the residence of the mortgagor. A judgment rendered on a promissory obligation secured by a real estate mortgage, deed of trust, or real estate contract executed on or after July 1, 2009, but without foreclosure against the security, shall not be subject to renewal by action thereon, and, after the lapse of two years from the date of judgment, shall be without force and effect except as a setoff or counterclaim, if at the time of the execution of the mortgage, deed, or contract the property encompassed by the mortgage, deed, or contract is either used for, or is being acquired for, an agricultural purpose or as a one-family or two-family dwelling which is the residence of the mortgagor.  The bill expands the options for allowing postponements of a sheriff's sale to include allowing a postponement upon a request by a judgment creditor and also extends the number of allowable postponements from two postponements of not more than three days each to two postponements not to exceed a total of 60 days in the aggregate. The bill establishes a provision preserving mortgage protections for a mortgagor in situations where the mortgagor ceases to occupy the mortgagor's residence because of the effects of natural disasters, injuries to the property, and relocations due to military service. This provision applies to all actions commenced on or after the effective date of the bill. The bill provides specific service of process provisions for judgment creditors and their attorneys as well as executors and administrators of a decedent's estate where in rem relief is the only relief requested in a foreclosure action. The bill requires courts to determine the rights of all persons joined as parties or receiving notices of their right to intervene in a foreclosure action where title issues have been raised by the pleadings and resolution of such issues is necessary to provide clear title to persons purchasing the land at a sheriff's sale. The bill amends notice provisions relating to pending foreclosures to require a mortgagee to provide additional information relevant to a judgment creditor's decision to intervene in a foreclosure action. The bill eliminates the requirement that the mortgagor consent to a rescission of a foreclosure action. The bill eliminates deficiency judgments against the mortgagee if such judgments would otherwise be restricted and limits the assessment of costs, including reasonable attorney fees, of foreclosure and rescission actions to those agreed to in writing by the mortgagor. The bill prohibits the use of a nonjudicial foreclosure in circumstances where the real estate that is the subject of the foreclosure is a one-family or two-family home occupied by a legal titleholder. This provision applies to all nonjudicial foreclosures of nonagricultural mortgages commenced on or after the effective date of the bill.
 
Urges the governor of the State of Iowa to declare a state of economic emergency relating to real estate mortgage foreclosures.
Kansas
Passed Senate 3/12/09
Amends the Kansas Credit Services Organization Act to place additional requirements for individuals engaged in distressed property consulting services and addresses activities related to “foreclosure avoidance” scams perpetrated on consumers and legitimate mortgage lenders. In addition, the bill transfers oversight of loan brokers from the Office of the Securities Commissioner to the Office of the State Bank Commissioner.
Kentucky
Urge Congress to enact a Homeowners and Bank Protection Act.
Louisiana
Provides for procedures for preliminary injunctions against a foreclosure proceeding in the event that the president of the U.S. has declared that an emergency or major disaster exists in this state and shall apply only to persons or property directly damaged in an enemy attack, or a man-made, technological, or natural disaster declared by the governor.
Maine
Requires mortgagees to provide notice of foreclosure proceedings to all occupants of mortgaged premises subject to the foreclosure action by mailing a copy of the complaint to the physical address of the mortgaged premises. The notice must be mailed no less than 14 calendar days after the foreclosure proceeding is commenced.
 
Allows a court upon a showing of good cause to extend a deadline for a notice of sale or conducting a public sale in a foreclosure action.
 
Signed by governor 6/9/09, Public Law 327
Clarifies that businesses acting as foreclosure negotiators relating to residential mortgages are subject to the laws regulating debt management service providers, but exempts those businesses from certain provisions of current law, such as the requirements to provide credit counseling services and to provide the consumer with certain internal business records. In addition, since foreclosure negotiators arrange for the purchase of property, the bill establishes a seven-day period during which an agreement may be cancelled as opposed to the current law's ongoing right to cancel, which is tailored to the activities of traditional debt management service providers. The bill retains consumer protections such as the requirement to register with the Department of Professional and Financial Regulation, Bureau of Consumer Credit Protection, post a surety bond to ensure compliance and accountability with the law and provide written agreements to consumers. The bill has an effective date of January 1, 2010.
 
Requires notice to be sent to the municipal assessor of a foreclosure of a property in that municipality upon commencement of the foreclosure and 60 days prior to the completion of the foreclosure. The notice must contain the address and identifying information of the property, the name of the deed holder of the foreclosed property and the name and address of the new deed holder of the property once the foreclosure is completed.
 
Extends the period of redemption in residential foreclosure proceedings initiated on or after October 1, 2009 on any mortgage to one year. The bill also requires the use of alternative dispute resolution in foreclosures.
 
Signed by governor 6/18/09, Resolve Chapter 137
Establishes a blue ribbon commission to conduct a study and make recommendations on landlord and tenant issues and specifically address the feasibility of obtaining heating fuel assistance and insulation assistance for landlords who serve low-income tenants in certain economically distressed areas, how to keep housing units in proper repair, how to keep tenants in their apartments in the event of a foreclosure and other landlord and tenant issues that the commission determines to be relevant. The commission shall make a report and recommendations to the Joint Standing Committee on Legal and Veterans Affairs, which is authorized to introduce a bill on this matter.
 
Requires that a mortgagee who is initiating a foreclosure action in Superior Court or District Court must include a mortgagor answer form in the documents that are served on the mortgagor with the complaint. The mortgagor answer form must be placed on top of the documents and may serve as the mortgagor’s answer to the foreclosure complaint. The form must be readily understandable and provide explanations and affirmative defenses in a check-off format for the mortgagor to complete. It must also provide an opportunity for the mortgagor to request mediation, if mediation is available. The Supreme Judicial Court shall develop the form. Both the judicial branch and the Department of Professional and Financial Regulation, Bureau of Consumer Credit Protection shall post the form on their publicly accessible websites.
 
Requires a mortgagor to notify a tenant of the commencement of foreclosure proceedings against the premises rented by that tenant no later than one week after the commencement of those proceedings by sending a notice to the tenant by certified mail, return receipt requested, or by notifying the tenant in person. A mortgagor who fails to provide this notice shall provide one month's rent to the tenant at no cost to the tenant. A mortgagee or any other person may not evict a tenant until 30 days after the completion of the foreclosure proceedings.
 
Signed by governor 6/19/09, Public Law 402
Amends the laws pertaining to foreclosures. Establishes the mandatory foreclosure mediation program within the Court Alternative Dispute Resolution Service. Makes violation of provisions of the Maine Consumer Credit Code a violation of the Maine Unfair Trade Practices Act. Requires that the words "judgment of foreclosure and sale," the street address of the real estate involved and the book and page number of the mortgage be on a foreclosure judgment when filed in the registry of deeds. Clarifies that a foreclosure on a rental property does not terminate a tenancy. Describes what a mortgagee must include in a notice of foreclosure to a mortgagor. Requires a mortgagee to provide certain information to the Maine State Housing Authority about foreclosure, which the Maine State Housing Authority shall transmit to the Department of Professional and Financial Regulation. Requires the Maine State Housing Authority to notify a mortgagor who is a party to a foreclosure about the mortgagor's rights and available resources as they relate to the foreclosure as well as the mandatory foreclosure mediation program. Requires the Maine State Housing Authority to establish a statewide hotline to help mortgagors communicate with housing counselors certified by the United States Department of Housing and Urban Development. Requires the Department of Professional and Financial Regulation to report quarterly on the number of foreclosure notifications received to the joint standing committee of the Legislature having jurisdiction over insurance and financial services matters. Amends the procedure and notice for foreclosures. Amends the procedure for commencement of foreclosure by civil action.
Maryland
Withdrawn from further consideration 3/28/09
Provides that a grantee that obtains title to a condominium unit or to a lot in a homeowners association in a foreclosure sale is jointly and severally liable with the unit owner or the lot owner for up to six months of assessments under a lien imposed for assessments due; authorizes the governing body of a homeowners association to impose a lien under the Maryland Contract Lien Act to enforce the payment of assessments and charges due.
 
Signed by governor 4/14/09, Chapter 149
Authorizes a county or municipal corporation to enact a local law requiring that notice be given to a county or municipal agency or official when an order to docket or a complaint to foreclose a mortgage or deed of trust is filed on residential property located in the county or municipal corporation; requires a local law to require that specified notice must be provided to the county or municipal government or official within a specified time.
 
Withdrawn from further consideration 3/28/09
Establishes that a foreclosure sale of residential property shall be made subject to a specified tenancy if the tenancy existed before a notice of intent to foreclose is sent; provides for the effect of a foreclosure sale on a specified lease.
 
Signed by governor 5/19/09, Chapter 615
Signed by governor 5/19/09, Chapter 614
Requires a notice addressed to "all occupants" to be sent to the address of the residential property at the time of filing an action to foreclose a mortgage or deed of trust on residential property; requires a notice of foreclosure sale addressed to "all occupants" to be sent to the address of the residential property a specified period of time before the foreclosure sale; applies the Act prospectively; makes the Act an emergency measure.
 
Signed by governor 5/19/09, Chapter 691
Signed by governor 5/19/09, Chapter 692
Alters the definition of "residential property" for purposes of specified residential property foreclosure procedures and specified provisions concerning the recordation of an instrument securing a mortgage loan on residential property; and clarifies the application of a specified provision concerning a mortgagor's or grantor's right to cure a default before a foreclosure sale.
 
Withdrawn from further consideration 3/23/09
Provides that a requirement that the purchaser of a residence in default provide a specified statement about tenancy to the homeowner under specified circumstances does not apply to a tenancy arising after the sale of owner-occupied residential property where the seller and purchaser agree that the seller may remain in possession of the property for not more than 60 days after settlement.
 
Withdrawn from further consideration 3/28/09
Requires a homeowner of a residence in default to provide a specified notice as a condition of exercising specified rights to rescind a contract for the sale or transfer of a residence in default; and requires the notice to be provided before the execution of the contract for sale or transfer of the residence in default.
 
Withdrawn from further consideration 3/23/09
Requires a specified notice of intent to foreclose a residential property to be sent to any individuals living at the property; requires the notice to be sent to the property; and requires the notice to be addressed to "Resident."
 
Withdrawn from further consideration 3/17/09
Withdrawn from further consideration 3/9/09
Requires a secured party to send a written notice of intent to foreclose on residential property to the occupant of the property at least 45 days before filing a foreclosure action; requiring the notice to contain specified information; requires the occupant to be served in a specified manner with a copy of an order to docket or complaint to foreclose on residential property and specified other papers; and authorizes service to be effected on an occupant in an alternative manner under specified circumstances.
 
Authorizes a tenant to remain in a foreclosed property for 30 days after the foreclosure sale; requires that a notice of intent to foreclose on residential property be sent to the occupants of the property; requires a landlord to provide a tenant with notice of any foreclosure action against the property; provides for the form of specified notices.
Massachusetts
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.
 
Protects tenants in foreclosed properties from evictions.
 
Imposes a transfer fee on mortgage foreclosures.
 
Establishes a temporary moratorium on foreclosures in the Commonwealth.
 
Creates the Massachusetts Foreclosure Mediation Program.
 
Amends the foreclosure statute to require judicial foreclosure.
 
Relates to the publication of notice in mortgage foreclosures.
 
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.
 
Relates to a foreclosure mediation program.
 
Establishes judicial review of foreclosures in the city of Lawrence.
 
Establishes a temporary moratorium on foreclosures in the city of Lawrence.
 
Establishes a moratorium on foreclosures in the city of Brockton.
 
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.
 
Requires judicial foreclosure.
 
Establishes a foreclosure mediation program.
 
Stabilizes tenancies in foreclosed properties.
 
Requires commercially reasonable efforts to avoid foreclosure.
Michigan
Provides for a one-year moratorium on residential mortgage and land contract foreclosures; makes applicable to MSHDA mortgages and land contracts.
 
Provides for a one-year moratorium on residential mortgage and land contract foreclosures.
 
Establishes a mediation program and moratorium for residential mortgage foreclosures.
 
Creates the Michigan Homeownership Preservation Fund in the state treasury and funds will be used by the commissioner to do any of the following: (a) Award grants to finance financial literacy programs, homeownership training, and homeownership protection training. (b) Provide down payment assistance to individuals seeking home loans. (c) Provide loans and grants to low income individuals seeking to avoid foreclosure.
 
Expands sales studies for assessed values to include foreclosures.
 
Passed House 3/17/09
Amends the Truth in Renting Act to require a rental agreement to contain a provision that a landlord must notify a tenant of any foreclosure actions being taken against the property within 30 days after the period of redemption has begun and again at least 30 days before conclusion of redemption. The bill would not allow a tenant to withhold rent payments because of receipt of the required notice. A landlord who leases property to a tenant during the redemption period would be required to give written notice to the tenant before entering into the lease agreement that the property has been foreclosed on. The written notice would notify the potential tenant of the number of days remaining redemption in the period. A landlord in violation of this section would be liable to the tenant for damages, and be responsible for a civil infraction and a fine up to $500.
 
Allows sales of land on foreclosure of a land contract or mortgage on real estate to be held at the office of the county sheriff.
 
Allows the public sale of property being foreclosed by advertisement to be held in sheriff's office.
 
Signed by governor 5/20/09, Public Act 29
Prohibits a party from commencing proceedings under Chapter 32 to foreclosure a mortgage of a principal residence if one or more of the following applied: 1) The foreclosing party had not mailed notice to the borrower (the mortgagor), as required under House Bill 4454 (S-1). 2) After notice was mailed to the borrower, the time for a housing counselor to notify the designated contact person of the borrower's request to work out a modification had not expired. 3) Within 14 days after notice was mailed to the borrower, he or she had requested a meeting with the designated contact person and 90 days had not passed after the notice was mailed. 4) The borrower had requested a meeting with the designated contact person and provided necessary documents if requested, and the designated person had not met or negotiated with the borrower. 5) The borrower and mortgagee had agreed in writing to modify the mortgage loan and the borrower was not in default under the agreement. This prohibition would apply only to proceedings under Chapter 32 in which the first notice of foreclosure under Section 3208 was published within two years after the bill's effective date.
 
Signed by governor 5/20/09, Public Act 30
Requires a foreclosing party to serve a written notice on a borrower before proceeding with a sale under Chapter 32 of property claimed as a principal residence exempt from tax under Section 7cc of the General Property Tax Act (which exempts a principal residence from school operating taxes to the extent provided under the Revised School Code). The required notice would have to contain all of the following: 1) The reasons that the mortgage loan was in default and the amount that was due and owning under the loan. 2) The names, addresses, and telephone numbers of the mortgage holder, the mortgage servicer, and any agent designated by the mortgage holder or servicer. 3) A designation of one of the people named in the previous provision as the person to contact who would have the authority to make modification agreements. 4) That if the borrower requested a meeting with the designated contact person, foreclosure proceedings would not be commenced until 90 days after the date the notice was mailed to the borrower. 5) That if the borrower and the designated person reached an agreement to modify the mortgage loan, the mortgage would not be foreclosed if the borrower abided by the terms of the agreement. 6) That the borrower had the right to contact an attorney, and the telephone numbers of the State Bar of Michigan's Lawyer Referral Service and of a local legal aid office serving the area where the property was located. In addition, the notice would have to indicate that a list of housing counselors prepared by the Michigan State Housing Development Authority (MSHDA) was enclosed with the notice. It also would have to indicate that, within 14 days after the notice was sent, the borrower could request a meeting with the designated contact person to attempt to work out a modification of the mortgage loan to avoid foreclosure, and could request a housing counselor to attend the meeting.
 
Signed by governor 5/20/09, Public Act 31
Under the bill, if a borrower had contacted a housing counselor (as provided in House Bill 4454 (S-1)) but the process had not resulted in an agreement to modify the mortgage loan, the borrower, counselor, or designated person would have to calculate a modified payment amount under the FDIC workout program. The designated person would have to give the borrower a copy of any calculation that person made.
 
Passed House 11/12/09
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 500,000 and less than 1,500,000. (This applies to Kent, Macomb, and Oakland counties.) Allows the appropriate payment to the purchaser or the purchaser's personal representative or assigns, or to the register of deeds. Further, the bill specifies that the register of deeds of a county having a population of more than 500,000 and less than 1,500,000 could determine the amount necessary for redemption. The bill also specifies that a county, a register of deeds, or an employee of a county or of a register of deeds would not liable for damages proximately caused by an incorrect determination of an amount necessary for redemption. Finally, a register of deeds could charge not more than $50 for determining the amount necessary for redemption. Requires that a purchaser or the purchaser's heirs or representatives who pay back taxes and certain fees and insurance, file their affidavits, receipts, or cancelled checks evidencing payment with the register of deeds 30 days or more before the last day of the applicable redemption period (if the redemption period is more than 30 days) or, 10 days or more before the last day of the redemption period (if the redemption period is less than 30 days).
 
Memorializes the Congress of the United States to create the Homeowners and Bank Protection Act.
 
Provides for a two-year moratorium on mortgage foreclosures.
 
Allows the  housing development authority to offer mortgage foreclosure extension guarantee program.
 
Relates to the lease of foreclosed property; provides that the lease continues after property is foreclosed, and provides notice of foreclosure to tenants.
 
Requires the notice of foreclosure of mortgage by advertisement to include street address.
 
Allows certain registers of deeds to calculate the amount required to redeem foreclosed property.
 
Beginning January 1, 2010, for any sales ratio study performed, the assessor shall prepare a report indicating all of the following: (a) All sales of property located in the local tax collecting unit by a lending institution which acquired the property sold through foreclosure. (b) All sales of property identified in subdivision (a) that were included in the sales ratio study. (c) All sales of property identified in subdivision (a) that were not included in the sales ratio study and the reason each sale as not included in the sales ratio study. A report prepared shall be submitted to the board of review and made available to the public not later than February 1 in each tax year.
 
Provides that if a bank makes, holds, or services mortgage loans that may be foreclosed by advertisement under chapter 32 of the Revised Judicature Act of 1961, MCL 600.3201 to 600.3285, the bank shall post on its Internet Web site the program, process, or guidelines used by the bank in making determinations of whether borrowers whose mortgages are foreclosed under that chapter qualify for mortgage loan modifications under §3205c(1) of the Revised Judicature Act of 1961, MCL 600.3205c.
 
Creates the foreclosure protection act; regulates certain mortgage foreclosure consultants, foreclosure consulting contracts, equity purchasers, and equity purchase contracts; and provides penalties and remedies for violations of that act.
 
Exempts certain mortgage foreclosure consultants and foreclosure consulting contracts from the credit services protection act.
 
Amends Chapter 31 (Foreclosure of Mortgages and Land Contracts) and Chapter 32 (Foreclosure of Property by Advertisement) of the Revised Judicature Act to revise the provisions for redeeming property subject to foreclosure.
 
Amends the State Housing Development Authority Act to revise the provisions for redeeming foreclosed property if the mortgages are held by the Michigan State Housing Development Authority (MSHDA).
Minnesota
Provides for the Minnesota Subprime Borrower Relief Act of 2009.
 
Provides for postponement of foreclosure sale.
 
Provides for the Minnesota Foreclosure Remediation Fee Act.
 
Vetoed by governor 5/22/09
Indefinitely postponed 5/16/09
Relates to real property; mortgages; requires notice and mandatory mediation prior to commencement of mortgage foreclosure proceedings on homestead property; creates a homestead-lender mediation account.
 
Relates to economic development; provides notice requirements for tenants and provides for a foreclosure moratorium.
 
Indefinitely postponed 4/2/09
Signed by governor 5/21/09, Chapter 141
Relates to mortgages; modifies provisions relating to foreclosure consultants.
 
Indefinitely postponed 5/5/09
Signed by governor 5/20/09, Chapter 130
Relates to real property; modifies provisions governing eviction of tenants in property subject to mortgage foreclosure or termination of contract for deed; specifies requirements for vendors under contracts for deed; modifies mortgage foreclosure notices and information requirements; modifies provisions for sheriff's sale postponement and perpetuating evidence of sale.
 
Indefinitely postponed 4/27/09
Signed by governor 5/20/09, Chapter 123
Relates to real property; specifies notice requirements; modifies provisions governing the reduced redemption period for abandoned property; establishes duty to protect vacant foreclosed property under certain circumstances; provides for the imposition of fines for failure to maintain property; alters the posting requirement for trespassing on construction sites; modifies provisions governing public nuisances; imposes civil and criminal penalties.
 
Relates to real property; mortgages; provides for notice of sale and postponement.
 
Relates to real property; clarifies tenant rights with respect to property subject to a mortgage foreclosure.
 
Relates to housing; provides for the rehabilitation of housing that is vacant and abandoned as a result of the foreclosure crisis; protects the health, safety, and welfare of the community through appropriate police powers; provides a legal process to appoint receivers for abandoned properties and recovery of funds expended to bring the property up to code.
 
Relates to housing; provides for the rehabilitation of housing that is vacant and abandoned as a result of the foreclosure crisis; protects the health, safety, and welfare of the community through appropriate police powers; provides a legal process to appoint receivers for abandoned properties and recovery of funds expended to bring the property up to code.
 
Relates to economic development; allows a stay of mortgage foreclosure proceedings under certain conditions; landlord and tenant; provides rights to tenants of foreclosed property.
Mississippi
Died in Senate committee 3/3/09
Amends §89-1-63, Mississippi Code of 1972, to provide that in the case of a foreclosure proceeding on a deed of trust, any substitute trustee appointed for the proceeding shall be a Mississippi resident, or if not a natural person, shall have its principal office located in Mississippi.
 
Died in committee 2/3/09
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.
 
Died in committee 2/3/09
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.
 
Died in committee 2/3/09
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.
 
Died in committee 2/3/09
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.
Missouri
Provides that a governing commission of a home equity program, with no less than $4 million in its guarantee fund, may, if authorized by referendum duly adopted by a majority of the voters, establish a foreclosure prevention loan fund to provide low interest emergency loans to eligible applicants that may be forced into foreclosure proceedings.
 
Combined with H.B. 836 3/12/09
Provides that if a landlord enters into a rental agreement in which the dwelling unit to be rented is part of a property that subsequently becomes subject to a foreclosure action, the landlord shall provide written notice of foreclosure to the tenant within ninety days after the foreclosure action is filed. If a landlord enters into a rental agreement in which the dwelling unit to be rented is subject to a foreclosure action at the time of the entry into the rental agreement, the landlord shall include the written notice of foreclosure in the rental agreement. Requires any landlord of a dwelling unit that is part of a property that is the subject of a foreclosure action shall provide each tenant at that dwelling unit written notice of the date, time, and place of the sale of the foreclosed property at least 90 days before the sale date.
 
Signed by governor 7/10/09
In any case where a foreclosed property is lawfully occupied by a residential tenant who is not in violation of any lease agreement, this bill prohibits any unlawful detainer action, including eviction, to be taken against the tenant until at least 10 business days after the date of the notice that the foreclosure sale occurred. After a foreclosure sale, the new owner of the property must provide the tenant written notice of the foreclosure sale, that he or she is the new owner, and that the tenant has 10 business days to vacate the property. The tenant must receive notice by mail and by a posting on the door of the premises where the tenant resides.
 
Requires any party attempting to sell property under foreclosure to give any tenant and the mortgagors or grantors named in the mortgage or deed of trust 60 days' notice before the sale. The notice, in a format specified in the bill, must be sent to any tenants living in the property subject to foreclosure.
 
Calls upon the United States Congress to take emergency action to protect homeowners and banks by enacting a Homeowners and Banks Protection Act.
 
The act increases one of the fees collected by each recorder of deeds from $3 to $10. Nine dollars of the $10 fee shall be deposited into the Missouri Housing Trust Fund. Six of the $9 deposited into the fund may be used for any of the authorized programs except homeless shelters, with an emphasis on activities encouraging home ownership, including foreclosure prevention. The remaining one dollar of the $10 fee shall be forwarded by the recorder to the county treasurer to be deposited into the county treasury for use by the recorder's office. This act changes the median family income requirements that families must meet to qualify for Housing Trust Fund assistance and adjusts the amount of housing trust fund money that goes to persons in certain income classifications.
 
This act places a moratorium on foreclosures of real property for one year from its enactment. Before foreclosure, a creditor shall notify defaulted debtors that they are in default no earlier than 60 days after default and that they have the right to participate in free mediation services administered by the Division of Finance, whereby the division will meet with the creditor and debtor in an attempt to restructure the loan payment schedule or otherwise agree upon a method to cure the default. Creditors may commence foreclosure 60 days after notice of default and right to seek mediation service or 30 days after the debtor and creditor first meet in mediation, whichever is later.
 
Requires that at least 20 days notice of foreclosure sales be given to mortgagors of the property (i.e. borrowers) and any tenants residing on the property. The lender must mail notice to the tenant of the foreclosure sale. The act provides the language of the notice to the tenant. When the lender or trustee does not know the name of the tenant they do not have to send the notice by certified or registered mail. The lender or trustee must record an affidavit of service as proof they notified the tenant. In cases where a foreclosed property is lawfully occupied by a residential tenant who is not in violation of any lease agreement, no unlawful detainer (i.e. eviction) action may begin against the tenant until 45 days after the date the tenant is given notice that the foreclosure sale occurred. A tenant is not guilty of unlawful detainer until they have received written notice that the foreclosure sale has occurred and they are either in violation of any lease agreement or it has been at least 45 days after the date of the foreclosure sale.
Nevada
Signed by governor 6/9/09, Chapter 484
Creates the Office of the Ombudsman for Foreclosures to provide information relating to the foreclosure process. Revises existing law by requiring that a notice of sale of real property under execution or a notice of sale of real property pursuant to a trustee’s power of sale be served upon the State Board of Health if the real property is operated as a licensed health facility. Requires such notices to include the contact information for the Office of the Ombudsman for Foreclosures and the lender’s loss mitigation department. Requires a separate notice to be served upon any tenant or subtenant, other than the judgment debtor, in actual occupation of the real property subject to a notice of sale under execution or a notice of sale pursuant to a trustee’s power of sale to inform the tenant or subtenant that the property is subject to a notice of sale. Makes it unlawful for a person to willfully remove or deface a notice of sale under execution or a notice of sale pursuant to a trustee’s power of sale which is posted on real property. Requires the purchaser of a vacant residential property at a foreclosure sale or a trustee’s sale to maintain the exterior of the property. Authorizes the appropriate governmental entity to assess a civil penalty of up to $1,000 per day, under certain circumstances, for failure to maintain the property. Provides that a tenant or subtenant, other than the person whose name appears on the mortgage or deed of trust, may be removed only after the expiration of a specified period not to exceed 60 days. Requires the tenant or subtenant who remains in occupation of the real property to remit rent to the new owner of the property pending expiration of the specified period. Prohibits any person from entering a record of eviction for a tenant or subtenant who vacates the property within the specified period. Allows the new owner of the real property to negotiate a new purchase, lease or rental agreement with the tenant or subtenant in occupation of the property or to offer a payment in exchange for the tenant or subtenant vacating the property on a date earlier than the end of the specified period. Requires a landlord to disclose in writing to a prospective tenant if the property to be leased or rented is the subject of foreclosure proceedings. Makes it a deceptive trade practice for any landlord to willfully fail to make such a disclosure.
 
Signed by governor 5/29/09, Chapter 364
Existing law sets forth procedures governing foreclosures on real property upon default. A trustee under a deed of trust has the power to sell the property to which the deed of trust applies, subject to certain restrictions. (NRS 107.080, 107.085) Section 1 of this bill establishes additional restrictions on the trustee’s power of sale with respect to owner-occupied housing by providing a grantor of a deed of trust or the person who holds the title of record with the right to request mediation under which he may receive a loan modification. Once mediation is requested, no further action may be taken to exercise the power of sale until the completion of the mediation. Each mediation must be conducted by a senior justice, judge, hearing master or other designee pursuant to rules adopted by the Nevada Supreme Court, and a fee of not more than $85 per hour may be charged and collected for the mediation. Section 2 of this bill also restricts the trustee’s power of sale with respect to owner-occupied housing by revising the period in which a deficiency in performance or payment under the trust agreement may be made good before the trustee may exercise that power. Similarly, section 3 of this bill restricts the trustee’s power of sale with respect to owner-occupied housing by revising the manner in which service of notice that a person is in danger of losing his home must be made. In addition, section 4 of this bill authorizes the Nevada Supreme Court to adopt rules providing for voluntary mediation with respect to a homeowner who is not in default but is at risk of default.
 
Signed by governor 5/29/09, Chapter 330
Relates to mortgage lending; defines the term “loan modification consultant”; requires certain mortgage lending professionals to be licensed; establishes certain requirements for the provision of services by certain mortgage lending professionals; establishes provisions governing compensation of certain mortgage lending professionals; establishes certain powers of the Commissioner of Mortgage Lending; revises provisions relating to the imposition of certain fees and assessments on certain mortgage lending professionals; revises the definition of “homeowner” as it applies to services performed by certain mortgage lending professionals; revises provisions governing the applicability of requirements regarding foreclosure consultants and loan modification consultants.
 
Allows the new owner of real property or a mobile home after a foreclosure sale or trustee’s sale to offer the tenant of the property a payment in exchange for the tenant vacating the property; requiring a security deposit received by a landlord to be placed in an escrow account.
 
Signed by governor 5/28/09, Chapter 248
Provides that, under certain circumstances, a unit-owners’ association may, without liability for trespass, enter the grounds of a vacant unit or a unit in foreclosure to abate a public nuisance or maintain the exterior of the unit.
 
Revises provisions relating to a notice of sale of real property under execution; establishes the crime of defacing a notice of sale of real property under execution or a notice of sale of real property pursuant to a trustee’s power of sale; establishes rights and duties of a purchaser of real property pursuant to a foreclosure sale and establishes rights and duties of a tenant in possession of such property; revises provisions relating to a sale of real property pursuant to a trustee’s power of sale.
 
Signed by governor 5/28/09, Chapter 310
Provides that a deficiency in payment on a mortgage, deed of trust or other encumbrance may be cured under certain circumstances before foreclosure; provides that a court shall not award a deficiency judgment on the foreclosure of a mortgage or a deed of trust under certain circumstances.
 
Urging Congress to implement the Homeowners and Bank Protection Act of 2007.
 
Signed by governor 5/28/09, Chapter 247
Existing law provides for a trustee to execute a power of sale on real property after a breach of an obligation or payment of debt due to the trustee. Section 1 of this bill amends existing law to: (1) require the trustee to record the sale of the property with the appropriate office of the county recorder within 30 days after the date of the sale or deliver, within 20 days after the date of the sale, the deed to the successful bidder, who must then record the deed with the appropriate office of the county recorder within 10 days after the date of delivery; and (2) make the successful bidder liable for certain damages for failure to cause such recordation. (NRS 107.080) Existing law provides for a person to proceed on an action for the recovery of any debt or for the enforcement of any right secured by a mortgage or other lien upon real estate. Section 2 of this bill amends existing law to require the sheriff who conducted a foreclosure sale pursuant to such an action to record the sale with the appropriate office of the county recorder within 30 days after the date of the sale. (NRS 40.430)
New Jersey
Passed Assembly 3/16/09
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. In addition, the bill provides that 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 commences such an action, the owner 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.
 
Passed Assembly 6/25/09
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 mortgage foreclosure actions as to surpluses from the sale of foreclosed properties. The bill requires notices to debtors and all parties named as defendants in the foreclosure action, 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 foreclosure action, 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 foreclosure action may have a right to claim; (3) the debtor and all parties named as defendants in the foreclosure action 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 foreclosure action 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 foreclosure action, informing them that: (1) the sale has resulted in a surplus that the debtor and all parties named as defendants in the foreclosure action may have a right to claim; and (2) the debtor and all parties named as defendants in the foreclosure action 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.
 
This bill, entitled the “New Jersey Homeownership Preservation Act," provides for a trust fund, the Foreclosure Prevention Revolving Trust Fund, to be established in the Department of Community Affairs for the purpose of providing relief to homeowners in this State who are at risk of mortgage foreclosure. The bill also places certain requirements on creditors who initiate foreclosure proceedings against homeowners who have "covered mortgage loans," which, as defined in the bill, are loans normally associated with the subprime lending market. The trust fund established by the bill is comprised of monies collected from a $2,000 fee applied to each creditor who initiates a foreclosure action against a borrower under a covered mortgage loan, and a $1 million appropriation from the reserves or administrative monies of the New Jersey Housing and Mortgage Finance Agency. The bill directs the department to use the trust fund to provide certain grants and loans, in accordance with a schedule set forth in the bill, to qualified counseling agencies, as defined in the bill, and non-profit agencies. Qualified counseling agencies must use the funding to assist homeowners by providing foreclosure prevention counseling services and making emergency foreclosure prevention assistance loans. The non-profit agencies must use the funding to assist homeowners by restructuring covered mortgage loans acquired from creditors or restoring properties acquired from creditors. The bill applies certain conditions as to the allocated funds, including requirements for the department to use contractual guarantees and to establish procedures, to ensure that the qualified counseling agencies and non-profits use the funds to effectively assist financially distressed homeowners who are most at risk for foreclosure. The bill also applies certain requirements to creditors who initiate foreclosure proceedings as to a covered mortgage loan pursuant to the “Fair Foreclosure Act” P.L.1995, c.244 (C.2A:50-53) by issuing a notice of intention to foreclose. Under certain circumstances, the creditor must: (1) grant the borrower, upon the borrower’s request, a six month period of forbearance so that the borrower may pursue a loan workout, loan modification, refinancing, or other alternative. During the period of forbearance, the interest rate cannot increase and the creditor cannot take any further action to foreclose on the property, beyond issuing the notice of intention; and (2) file certain reports with the Department of Banking and Insurance, indicating the status of the foreclosure and any attempts to work out the mortgage payments with the borrower. Further, the bill requires a creditor that issues a notice of intention to foreclose mortgage on residential property, to notify the municipality by providing a copy of the notice to the public officer or municipal clerk of the municipality. In certain circumstances, the bill makes the creditor responsible to abate any nuisance or correct any violations related to the property, and provides the municipality with recourse against the creditor for failure to do so. The bill also provides that a consumer reporting agency or any other business entity may not sell to, or exchange with, a third party, unless the third party holds an existing mortgage loan on the property, the existence of a credit inquiry arising from a consumer mortgage loan application when the sale or exchange is triggered by an inquiry made in response to an application for credit. That section shall not apply to information provided by a mortgage originator or servicer to a third party providing services in connection with the mortgage loan origination or servicing; a proposed or actual securitization; secondary market sale, including sales of servicing rights; or similar transaction related to the consumer mortgage loan. The bill also provides that a homeowner who is a borrower under a covered mortgage loan and who loses the home to foreclosure, may remain in possession of the property as a tenant in possession, under certain circumstances, provided the homeowner pays fair market rent to the owner of the property. Finally, the bill provides that the Department of Community Affairs, in consultation with the Department of Banking and Insurance, shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations to effectuate the purposes of the bill.
 
Allows an aggrieved employee or former employee of an employer who has been found to be in violation of the “Millville Dallas Airmotive Plant Job Loss Notification Act,” P.L. 2007, c.212 (C.34:21-1 et seq.), also more commonly referred to as the “plant closing law,” or the “NJ WARN Act,” to request a suspension of the payment of interest on a mortgage loan that was secured by the person before entry of the court order finding a violation of that act. The suspension would remain in effect for 180 days from the date of the order and interest that was incurred during that time shall be paid, after the expiration of the suspension, in equal installments over the remaining term of the mortgage loan. The bill only applies to a person who is domiciled in this state and to a mortgage securing a primary residence located in this state. To obtain the suspension, a person would submit to the mortgagee a written request which shall include: (1) a copy of the court order finding a violation of P.L.2007, c.212 (C.34:21-1 et seq.); and (2) an affidavit stating that the person is an aggrieved employee or former employee of the employer named in the order and further that the person is a mortgagor of the mortgage loan with respect to which the request is being made.
 
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. 
 
The provisions of the bill are intended to assist municipalities in meeting their respective fair share housing obligation under the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.) through the purchase of existing units of housing that are the subject of foreclosure proceedings and the rehabilitation or other subsidizing of those housing units for affordable housing purposes, as permitted under the rules of the Council on Affordable Housing. The bill amends the "Fair Housing Act" to expand the duties of the New Jersey Housing and Mortgage Finance Agency under that act to create a program to assist municipalities in the purchase or subsidizing of homes in foreclosure. The agency is directed, not less than once per month, to obtain from the Office of Foreclosure in the Administrative Office of the Courts a list of each parcel of residential real property in the state upon which a complaint for foreclosure has been filed, and a list of residential real property on which a final judgment in foreclosure has been entered. At its discretion, the agency may also contact any bank, credit union or other financial services institution which may write, hold or service mortgages on residential real property to obtain such information from those entities. The bill requires that each listed property must be identified on the list by its mailing address and by its lot and block numbers, along with the amount of the outstanding principal on the mortgage. The bill requires the agency, on a monthly basis, to sort the lists of residential real property obtained by municipality, and to electronically distribute the list to each municipality. The agency is instructed by the bill to assist municipalities wishing to participate in the program.
 
This bill, designated as the "Affordable Housing State Tax Credit Act," creates a corporation business tax credit for financial entities that hold residential mortgage loans, and which donate foreclosed residential real property to municipalities for use as affordable housing. Under the bill, a taxpayer that is a financial entity a financial entity (defined in the bill as a bank, credit union, mortgage company or other financial service institution doing business in New Jersey that holds mortgage loans on residential real property) that has donated to a qualified municipality (defined in the bill as a municipality that has petitioned the Council on Affordable Housing for substantive certification pursuant to the "Fair Housing Act") a residential real property for which it has received a final judgment in foreclosure and for which it has obtained an eligible affordable housing tax credit certificate from the Housing and Mortgage Finance Agency shall be allowed a credit against the corporation business tax, imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to the true value of the donated residential real property, as calculated by the municipal tax assessor. The bill caps the amount of a tax credit allowed a taxpayer for a tax year at $1,000,000, but the amount of this credit for a tax year, when taken together with any other credits allowed against that tax, cannot exceed 50 percent of the tax liability otherwise due and cannot reduce the tax liability to an amount less than the statutory minimum provided by law. The bill provides that the total tax credits certified for all donations proposed in a fiscal year shall not exceed $10,000,000. A financial entity desiring to donate a residential real property for use as affordable housing pursuant to the provisions of the bill would provide the New Jersey Housing and Mortgage Finance Agency with the name of the municipality in which the residential real property is located, and the street address, lot number and block number for the property that it is seeking to donate. The agency must forward this information to the municipality wherein the property is situate within a reasonable time period. If the municipal governing body determines that the residential real property being offered by the financial entity is desirable and appropriate for local affordable housing needs, the governing body would advise the agency and the financial institution that it will accept the donation of the residential real property. The bill requires the agency to coordinate the donation of the residential real property and to ensure that affordability controls are placed on any property being credited pursuant to the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.). Once all documents required to be recorded have been recorded, the agency would then issue a certificate of tax credit to the financial entity. 
 
Substituted 5/21/09
Signed by governor 8/6/09, Chapter 105
This bill supplements the “Fair Foreclosure Act,” P.L.1995, c.244 (C.2A:50-53 et seq.) by applying a statute of limitations to residential mortgage foreclosure actions. The bill is intended to address some of the problems caused by the presence on the record of residential mortgages which have been paid or which are otherwise unenforceable. These mortgages constitute clouds on title which may render real property titles unmarketable and delay real estate transactions. The bill provides that a foreclosure action must be commenced by the earliest of: (1) five years from the date of maturity; (2) 25 years from the date of recording or execution, provided that the mortgage itself does not provide for a period of repayment in excess of 20 years; or (3) 20 years from the date of default by the debtor. Thus, the bill allows title examiners to determine that a mortgage which on its face has matured more than five years ago or which was recorded more than 25 years ago is not a cloud on title because an action can no longer be brought to foreclose it. The bill also codifies the holding in Security National Partners Limited Partnership v. Mahler, 336 N.J. Super. 101 (App. Div. 2000), which applied a 20-year statute of limitations to a residential mortgage foreclosure action based on a default due to nonpayment. In its decision, the court noted that since there is no statute of limitations expressly applicable to mortgage foreclosures in these situations, courts have resorted to drawing analogies to adverse possession statutes which bar rights of entry onto land after 20 years. This bill would resolve the uncertainties surrounding this area of law by providing a specific statute of limitations of 20 years from the date of the default by the debtor.
 
Passed Assembly 10/27/08
Exempts certain sales of residential property to a purchaser operating as a housing assistance and recovery program (HARP) from the payment of realty transfer fees. Under a HARP, a not-for-profit entity, such as a church organization, partners with a bank to rescue homeowners in danger of foreclosure or eviction. The not-for-profit entity works with the mortgage holder to purchase the property and then leases the property back to the original homeowner at an affordable rent. The goal of the HARP is to help financially strengthen the homeowner within a seven-year period, and then resell the property back to that homeowner, or member of the family living with the homeowner. The purpose of the sale or transfer to the HARP is to stop foreclosure or eviction proceedings; therefore, it does not make sense to charge a realty transfer fee because the property will be returned to the seller. To discourage fraud, if the property is sold to someone other than the original seller, or a person residing with the seller, then an amount equal to twice the realty transfer fee would be collected at the time of that subsequent sale. 
 
Amends the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.) to require the Council on Affordable Housing to permit a municipality to acquire take advantage of property foreclosures in the municipality to provide affordable units. The legislation requires the council to credit all foreclosed, and other units acquired by the municipality against the municipality's fair share obligation. 
 
Passed Assembly 3/5/09
Makes the Housing Assistance and Recovery Program (HARP) operative immediately. As originally enacted, HARP would remain inoperative until April 1, 2009 in order to provide non-profit organizations with a period of time to develop programs meeting the requirements of HARP. The non-profit organizations, who are the intended recipients of money allocated for HARP, have informed the sponsor that they are currently providing the assistance required under the program to individuals in danger of losing their home to mortgage foreclosure, and the immediate release of HARP funds will enable them to assist many more homeowners. These organizations do not need additional time to develop their programs and the immediate operation of HARP will enable the non-profits to provide vital assistance to distressed New Jersey homeowners, and help alleviate the stunning foreclosure crisis that is at the heart of the current economic downturn. 
  A.B. 3767
Supplements the "Fair Foreclosure Act" to require residential mortgage lenders to provide mortgage debtors with information about available programs to help cure defaults, prior to the initiation of a mortgage foreclosure proceeding. The bill requires that at least 60 days prior to filing a notice of intention to foreclose pursuant to section 4 of P.L.1995, c.244, (C.2A:50-56), and as a precondition to the right to file the notice of intention, a residential mortgage lender shall send the debtor, by registered or certified mail, return receipt requested, at the debtor’s last known address, and if different, to the address of the property which is the subject of the residential mortgage, a written notice which shall clearly and conspicuously state in a manner calculated to make the debtor aware of the situation: (1) The nature and extent of any default or failure to perform any obligation of the mortgage that may provide the mortgage lender with the right to send to the debtor a notice of intention to foreclose pursuant to section 4 of P.L.1995, c.244 (2A:50-58); (2) The possible availability of financial assistance for curing a default from programs operated by the state or federal government or nonprofit organizations, if any, as identified by the commissioner of Banking and Insurance. This requirement shall be satisfied by attaching a list of programs, referencing any available phone numbers and websites, promulgated by the commissioner; and (3) The possible availability of any programs within the internal operations of the residential mortgage lender to refinance the mortgage or otherwise restructure the terms of the mortgage.
 
Signed by governor 7/2/09, Chapter 84
Substituted 6/18/09
Repeals the provision of the “Mortgage Stabilization and Relief Act” prohibiting a lender from selling the names of delinquent borrowers to other lenders or creditors. The federal government has conducted studies which show that permitting lenders to sell the names of delinquent borrowers to other credit agencies increases competition between the lenders. The consumer may then chose among a variety of lenders and negotiate the most competitive interest rate. As a result of these studies, the regulation of advertising by credit agencies is governed through, and state regulation preempted by, federal law.
 
This bill, the "Foreclosure Consulting and Anti-Fraud Act," 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, with respect to certain foreclosure consulting practices. 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, in order to assist such owners regarding their ability to retain ownership or possession of the property, are required to be licensed in this state as debt adjusters. 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. 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: i) 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 ii) 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. Concerning penalties for violations of the applicable debt adjustment and credit counseling law, the bill would now 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, in addition to any licensed debt adjuster, "any other person concerned or in any way participating in" a violation of the law, includes, with respect to foreclosure consulting activities, which activities may include a conveyance of the property, any mortgage banker, mortgage broker, or other licensee pursuant to the "New Jersey Licensed Lenders Act," P.L.1996, c.157 (C.17:11C-1 et seq.), 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.).
 
Provides an additional funding mechanism for Legal Services with monies from certain mortgage execution sales. Under the bill, the county treasurer would be required to forward to the state treasurer for deposit in the Legal Services Trust Fund created under the bill the amount of $300 from each mortgage execution sale exceeding $7,000 that is conducted by the county sheriff.
 
Amends the “Mortgage Stabilization and Relief Act,” P.L.2008, c.127, (C.55:14K-82 et al.) by providing additional penalties for the failure of a creditor to abate a nuisance or correct a violation related to residential property that becomes vacant subsequent to the creditor’s filing of a notice of intention to foreclose on the property. This bill provides that, in connection with such a property, upon a creditor’s failure to abate a nuisance or correct a violation of any applicable State or local code, after receiving a written notice to do so from the local public officer or municipal clerk, the public officer or municipal clerk may impose on the creditor: (1) penalties allowed for the violation of municipal ordinances pursuant to R.S.40:49-5; and (2) an additional penalty of not more that $100 per day for each day that failure to abate the nuisance or correct the violation continues after the time period specified in the notice to abate or correct. The bill clarifies that the notice provided by the local public officer or municipal clerk shall be written, and specifies that the time provided for the creditor to abate the nuisance or correct the violation shall be not less than 30 days from the creditor’s receipt of the notice. The bill’s penalties are in addition to the act’s current provisions which allow recourse against a creditor in situations in which the municipality expends funds to abate a nuisance or correct a violation, after the creditor’s failure to do so.
 
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. 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 a list detailing the location of all property the creditor is foreclosing on 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 permits a borrower whose property is subject to a foreclosure complaint to request, in writing, a period of forbearance, within 30 days of being served with the foreclosure complaint. The forbearance period shall last six months, during which time no action shall be taken by the lender to foreclose on the property. The lender must provide the borrower with information about the forbearance period, including the address to which any request for forbearance may be sent. The bill states that failure of the borrower to participate in court sponsored mediation, due to circumstances beyond the borrower’s control, will not inhibit the borrower’s continued eligibility for forbearance. The bill extends the term for which a period of forbearance is offered from January 9, 2011 to two years following the effective date of the bill. 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.
 
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.
 
Redirects appropriations in "Mortgage Stabilization and Relief Act" (2009) to provide more effective foreclosure relief to homeowners.
 
Passed Senate 12/10/09
Allows the sheriff to designate an undersheriff to perform certain administrative duties on behalf of the county sheriff. These administrative duties may include tasks such as assisting in the sale of certain premises, conveyance of deeds, and following the uniform procedures for the sale of mortgaged premises that are under foreclosure action. Under the provisions of this bill, the appointed undersheriff would only be responsible for carrying out administrative duties. This bill would not allow an undersheriff to carry out law enforcement duties.
 
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.
 
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.
 
Requires the New Jersey Department of Community Affairs (DCA) to establish, maintain, and regularly update a Web site that will provide homeowners and other interested parties with answers to frequently asked questions about refinancing and curing mortgage defaults and list, describe, and provide a Web site link to various federal, state, local, for-profit, and non-profit organizations that provide services or guidance related to mortgage and credit problems. The bill permits DCA to publicly promote the homeowner assistance program Web site through public access advertising and other available outlets, and may apply for and accept grants from the federal government, or any agency thereof, or grants, gifts or other contributions from any foundation, corporation, association or individual, and complying with the terms, conditions and limitations thereof, for the purpose of financing and promoting the website, and may partner with the federal government, or any agency thereof, or any foundation, corporation, association or individual, to develop, maintain, and update the Web site. Finally, the bill appropriates $50,000 from the General Fund to DCA to effectuate the provisions of this act. 
 
Provides greater regulatory oversight and consumer protections concerning certain mortgage products, mortgage lending, and mortgage foreclosure practices. For current and future borrowers facing mortgage foreclosures, the bill provides additional consumer protections by expanding and clarifying the scope and provisions of P.L.1979, c.16 (C.17:16G-1 et seq.), concerning debt adjustment and credit counseling activities, to expressly incorporate certain “foreclosure consulting practices.” 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 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: i) 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 ii) 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 distressed property conveyances, any mortgage banker, mortgage broker, or other licensee licensed pursuant to the “New Jersey Licensed Lenders Act,” P.L.1996, c.157 (C.17:11C-1 et seq.), any real estate broker, broker-salesperson, or salesperson licensed 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.). 
 
Establishes the “New Jersey Foreclosure Fairness Act”; imposes additional foreclosure notice requirements; amends “Mortgage Stabilization and Relief Act.”
New Mexico
Relates to real property; prohibits deficiency judgments in certain mortgage foreclosures.
 
Relates to real property; enacts the Mortgage Fair Foreclosure Act; provides penalties.
 
Requests the appropriate interim legislative committee to study issues related to residential mortgage foreclosure procedures in New Mexico.
New York
A.B. 464
Provides for free legal representation in certain mortgage foreclosure actions where the homeowner is financially unable to obtain counsel; requires notice of such availability.
 
A.B. 1239
Passed Assembly 6/11/09
S.B. 2614
Enacts the "access to justice in lending act"; relates to a mortgagor's right to recover attorney's fees in actions or proceedings arising out of foreclosures of residential property; provides reciprocal attorney's fees.
 
A.B. 2177
Enacting clause stricken 1/20/09
Requires tax foreclosure enforcing officer to provide notice of commencement of a foreclosure action and the entry of a default foreclosure judgment to owner by first class mail and posting such notice at the affected property upon return of such notice mailed by certified mail as undelivered; provides that a default foreclosure judgment may only be taken if the owner of the property has received notice thereof or the enforcing officer a diligent effort has been unable to provide such notice; requires reconveyance of foreclosed real property within four months of notice of such foreclosure to the owner if the taxes, penalties and interest are paid on such property.
 
A.B. 2703
S.B. 405
Requires that notice of foreclosure be served upon all tenants of the building that is being foreclosed.
 
A.B. 3593
Allows right of redemption in foreclosure action brought against mortgagor's residence; provides such right must be exercised within one year of entering of judgment.
 
A.B. 4408
S.B. 127
Establishes the rural homeowners assistance program for assisting first time, low or moderate income, or minority homeowners from foreclosure by authorizing and directing the commissioner of state Division of Housing and Community Renewal to enter into contracts with neighborhood preservation companies to provide such assistance to residents in certain rural communities.
 
A.B. 4409
S.B. 126
Establishes the urban homeowners assistance program to assist first time, low or moderate income, or minority homeowners avoid foreclosure by authorizing and directing the commissioner of the state Division of Housing and Community Renewal to enter into contracts with neighborhood preservation companies to provide for such assistance to residents in certain urban communities; makes an appropriation therefor.
 
A.B. 4590
S.B. 2954
Provides that records of eviction proceeding shall be sealed when the leased property was foreclosed upon; prohibits use and disclosure of any such information relating to a tenant; imposes fine of between $1,000 and $2,000 for violations thereof.
 
A.B. 4678
S.B. 2955
Grants tenants relocation costs from the proceeds of a foreclosure sale.
 
A.B. 5358
S.B. 1182
Passed Senate 2/25/09
Requires prevailing party in foreclosure action to maintain property in safe and habitable condition; allows municipality to enforce this section.
 
A.B. 5566
Requires banks to defer mortgage payments of customers who are delinquent.
 
A.B. 5862
Authorizes localities to convey distressed residential real property that has been foreclosed upon for non-payment of real estate taxes to a third party; establishes that third party may be an individual or for-profit or not-for-profit entity which would rehabilitate and manage such property, providing needed housing while restoring the property to the non-delinquent tax rolls; called "third party transfer program."
 
A.B. 6161
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.
 
A.B. 6297
S.B. 1363
Passed Senate 5/6/09
Provides special protections to tenants of properties that have been foreclosed.
 
A.B. 6670
S.B. 1203
Enacts the "Foreclosure Prevention Act of 2009"; establishes that before any mortgagee may accelerate the maturity of any eligible mortgage obligation, commence any legal action including mortgage foreclosure, or take possession of any security of the mortgage debtor for such mortgage obligation that such mortgagee shall give the mortgagor notice; authorizes the commissioner of the state Division of Housing and Community Renewal to enter into contracts with neighborhood preservation companies to provide temporary homeownership assistance activities; gives notice to mortgagors of foreclosure prevention activities and payments; creates the New York State Foreclosure Prevention Fund.
 
A.B. 6756
Provides foreclosure relief for fundamentally unaffordable mortgage loans, second mortgages and home equity loans.
 
A.B. 7105
S.B. 1944
Amends the real property actions and proceedings law, in relation to designating a party to accept service in the event a property becomes vacant during the foreclosure process.
 
A.B. 7106
S.B. 1972
Amends the real property actions and proceedings law, in relation to requiring a lender to ascertain the value of real property prior to commencing foreclosure proceedings.
 
A.B. 8236
S.B. 4109
Enacts the "Foreclosure Prevention Act of 2009"; provides for a one-year moratorium on foreclosures; requires a homeowner to attend a counseling session; requires courts to meet with parties at a conference.
 
A.B. 8917
Passed Assembly 6/22/09
S.B. 5931
S.B. 51105
Relates to home mortgage loans, the crime of mortgage fraud and the filing of transfers and assignments of mortgages.
 
A.B. 8945
S.B. 5934
Relates to procedures at mandatory settlement conferences in residential foreclosure actions and requires good faith settlement discussions in connection with such foreclosure actions.
 
A.B. 8993
Provides for the foreclosure of mortgages of $5 million or more by power of sale.
 
A.B. 40007
Substituted 11/16/09
S.B. 66007
Signed by governor 12/15/09, Chapter 507
Relates to home mortgage loans, tenant protections in foreclosed homes, the foreclosure process, the crime of mortgage fraud, and appropriations to the NYS housing trust fund corporation.
 
S.B. 661
Authorizes certain cities and villages to expedite foreclosure on substantially physically distressed and unoccupied residential, commercial or industrial properties; establishes procedures requiring the consideration of various factors.
 
S.B. 954
Allows modifications reducing federal adjusted gross income for the purposes of tax on personal income for amounts considered by the United States Internal Revenue Service to be debt forgiveness regarding the sale by foreclosure proceeding of any taxpayer's primary residence. 
 
S.B. 1770
Provides that the judgment of sale in a mortgage foreclosure action shall direct that payment by the purchaser be made by means of a bank officer's check or certified check. 
 
S.B. 1771
Provides that the judgment of sale in a mortgage foreclosure action shall direct that in the event such premises is purchased collectively by more than one individual, the names of each individual purchaser shall be disclosed in writing to the sheriff of the county or referee conducting the sale. 
 
S.B. 3913
Requires the service of notice of foreclosure upon all tenants of the buildings to be foreclosed upon and requires a current list of tenants to be maintained. 
 
S.B. 5572
Provides for the continued occupancy of a property by tenants and owner-occupants during and after foreclosure proceedings.
 
S.B. 5896
Relates to distressed property consultants advertisements.
 
S.B. 5983
Extends from July 1, 2009 to July 1, 2010, the expiration and repeal of the provisions of article 14 of the real property actions and proceedings law providing for proceedings for non-judicial foreclosure of a mortgage by power of sale.
North Carolina
Increases access to justice in the civil courts, as recommended by the Chief Justice's North Carolina equal access to justice commission.
 
Appropriates funds to expand the North Carolina Agricultural Mediation Program at Western Carolina University to provide mediation, arbitration, and negotiation services to traditionally underserved members of the agricultural community in foreclosures, bankruptcies, and other agricultural disputes that threaten the agricultural community in rural and economically stressed areas of the state.
 
Signed by governor 9/9/09, Chapter 573
Enacts the Consumer Economic Protection Act of 2009.
 
Passed Senate 4/29/09
Provides that the purchaser of foreclosed property shall not dispossess or evict a tenant who receives Section 8 assistance prior to the expiration of the tenant's lease.
 
Signed by governor 8/7/09, Chapter 441
Abolishes deficiency judgments in certain cases where the mortgage is secured by primary residence.
 
Passed Senate 5/13/09
Enacts the Homeowner and Homebuyer Protection Act to prohibit home foreclosure rescue scams and offer protections in land installment sales.
 
Supports the implementation of the Homeowners and Bank Protection Act.
North Dakota
Failed to pass House 2/9/09
Relates to disclosure of identity when on foreclosure property; and provides a penalty.
 
Signed by governor 4/30/09, Chapter 257
Revises provisions relating to the general and summary execution of a judgment; provides that if the judgment creditor in a mortgage foreclosure does not proceed within 60 days after entry of judgment in the foreclosure to serve a special execution and proceed without delay to a sheriff's sale, any other lienholder or other interested person may obtain the special execution and proceed to arrange for a sheriff's sale.
 
Signed by governor 4/8/09, Chapter 397
Relates to recording of change of name or identity of mortgagee and the assignment, satisfaction, release, or authorization of foreclosure by a mortgagee; and provides for retroactive application.
Ohio
Passed House 5/20/09
Amends various sections of the Revised Code to address the current mortgage foreclosure crisis. Declares a six-month moratorium on mortgage foreclosures, to require registration of residential mortgage servicers, regulates residential mortgage servicers, establishes a database to track foreclosures, adopts procedures and requirements related to residential foreclosure actions, adopts civil and criminal penalties for violations of the bill's provisions, and terminates the moratorium provisions of this act six months after its effective date by repealing §2308.03 of the Revised Code on that date.
 
Passed House 5/6/09
Enacts §5321.20 of the Revised Code to require that notice of foreclosure and related sale of residential rental property be given to tenants at that property and specifies that a rental agreement for a residential property that is sold pursuant to a foreclosure action converts to a month-to-month rental agreement.
 
Amends §2329.26 of the Revised Code to authorize county sheriffs to advertise foreclosure sales via a Web site.
 
Amends §§2303.201 and 2323.06 and enacts §§2303.24 and 2308.01 to 2308.05 of the Revised Code to require courts to establish and operate programs of mandatory foreclosure mediation in non-tax foreclosure actions on occupied residential properties and to establish procedures for the operation of those foreclosure mediation programs.
 
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.
 
Enacts §§121.086, 2703.10, 5321.20, 5321.21, 5321.22, and 5321.23 of the Revised Code to require a clerk of courts to notify tenants when a foreclosure action is filed, requires the director of Commerce to prepare a publication to assist owners and tenants of foreclosed properties, requires clerks of courts to distribute that publication, requires landlords to notify tenants when a property is foreclosed and when a sale is scheduled, enables tenants to terminate a rental agreement on a foreclosed property, provides for continuance of a rental agreement after a foreclosure sale, and provides civil remedies for a tenant whose landlord violates the bill's provisions.
 
Enacts §5321.20 of the Revised Code to prohibit requiring a tenant to vacate a foreclosed residential property any earlier than 90 days following a court's confirmation of the sale of the property.
 
Enacts §§121.086 and 2303.32 of the Revised Code to require the director of Commerce to establish a residential foreclosure tracking system and prepare an annual report on residential foreclosure filings and sales in each county.
 
Amends §§2303.201 and 2323.06 and enacts §§2303.24 and 2308.01 to 2308.05 of the Revised Code to require courts to establish and operate programs of mandatory foreclosure mediation in non-tax foreclosure actions on occupied residential properties and to establish procedures for the operation of those foreclosure mediation programs.
Oklahoma
H.B. 1088
Relates to state government; relates to the Department of Commerce; modifies purposes for Community Services Block Grant Funds to provide counseling and assistance to homeowners involved in a foreclosure including, but not limited to, negotiating the terms of the mortgage with the mortgage lender.
 
H.B. 1632
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.
 
S.C.R. 1
Memorializes Congress to enact a Homeowners and Banks Protection Act for specific purposes.
Oregon
Requires creditor not later than 45 days before commencing action to foreclose mortgage or not later than 120 days before foreclosing trust deed to provide notice to borrower and to Department of Consumer and Business Services. Prescribes contents of notice and method of delivery. Requires creditor to provide notice in English language and language that borrower primarily speaks or reads.   Requires department to contact creditor and borrower to obtain information related to loan subject to foreclosure and to evaluate whether certain measures may enable borrower to avoid foreclosure. Authorizes department to delay by 30 days date on which creditor may commence action to foreclose mortgage or trust deed. Provides that court shall dismiss action to foreclose mortgage that creditor commences in advance of date specified in department's notice and that court may sanction creditor if warranted. Authorizes borrower to commence action for damages and department to assess civil penalty in amount not more than $25,000 if creditor forecloses trust deed in advance of date specified in department's notice.
 
Signed by governor 8/4/09, Chapter 883
Provides that sale by trustee of foreclosed property or sale of residential property after judicial foreclosure precludes further action against mortgagor, grantor or other specified obligor for deficiencies in amount secured by mortgage or trust deed. Creates exceptions. Specifies to whom trustee must send amended notice of sale. Specifies means by which trustee must give notice.
 
Imposes duties and restrictions on distressed home consultants. Requires that distressed home consultation transactions be provided pursuant to written contract. Authorizes enforcement of violation of Act as unfair trade practice. Provides that violation of distressed home consulting laws is misdemeanor punishable by maximum of one year's imprisonment, $10,000 fine, or both.
 
Signed by governor 6/4/09, Chapter 229
Requires trustee foreclosing trust deed to record affidavits of mailing of notice required to be sent to grantor. Requires grantor to inform certain persons in writing that grantor did not receive notice and did not have actual notice of trustee's sale in order to obtain rights equivalent to those of omitted party defendant in judicial foreclosure proceeding.
 
Signed by governor 7/30/09, Chapter 864
Changes contents of notice of default that lender must deliver to grantor before sale to foreclose residential trust deed. Requires lender to also deliver form by which grantor may request loan modification. Specifies procedures by which sale to foreclose residential trust deed may occur if owner uses form to request loan modification. Modifies procedures one year after effective date of Act.
 
Creates Task Force on Home Foreclosure Prevention. Authorizes task force to seek and obtain information related to options for avoiding home foreclosures in this state and recommend programs, policies, legislation or other methods for avoiding foreclosures.
 
Signed by governor 6/24/09, Chapter 510
Provides that purchaser is entitled to possession of property sold at trustee's sale subject to interests of person in possession of property under interest created voluntarily by grantor or successor to grantor. Requires purchaser of foreclosed property to give additional notice to tenants living on property when purchaser intends to take possession of property. Creates different notice procedures for different types of tenancy. Modifies information to be included in notice. Creates other procedures related to taking possession of property. Allows tenant who receives actual notice of foreclosure to apply security deposit or prepaid rent to pay rent obligation.
Pennsylvania
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.
 
H.B. 956
Further provides for the Homeowner's Emergency Mortgage Assistance Fund.
 
Provides for mortgage foreclosure conciliation programs.
 
Provides for mortgage foreclosure conciliation programs.
 
Provides for neighborhood blight reclamation and revitalization.
Puerto Rico
H.B. 31
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.
 
H.B. 1324
Signed by governor 8/20/09, Chapter 86
Amends the Internal Revenue Code of Puerto Rico of 1994; waives the penalty imposed by existing law on distributions to Individual Retirement Accounts that are used by the taxpayer to prevent the imminent foreclosure of the mortgage on a principal residence due to circumstances beyond their control, subject to documentation of such use.
Rhode Island
Passed House 6/26/09
Establishes the Rhode Island foreclosed property upkeep act and requires a purchaser of foreclosed property to maintain the property in accordance with 45-24.3 and also to identify an agent in Rhode Island for service of process.
 
Requires a mortgagee to notify municipal tax collectors of pending mortgage foreclosure sales and dates within the community and to maintain a public list of the property schedule to be foreclosed upon.
 
Prohibits mortgagees that acquire residential real estate at a foreclosure sale that they conduct from evicting tenants residing there solely as a result of the foreclosure sale. This act also allows the tenant to stay for a period of 60 days thereafter; provided the tenant pays any and all rent due to the mortgagee.
 
Requires that notice of residential foreclosures be given also to any tenants.
 
Requires a bank or other mortgagee commencing a foreclosure process to pay to the city or town in which the property is located the outstanding property taxes on the property on or before publishing the first foreclosure notice.
 
Grants tenants in foreclosed residential property a grace period of 90 days (30 days if the security deposit is returned) after the foreclosure sale before they could be evicted.
 
Imposes an immediate 180 day moratorium on foreclosures and actions for evictions of tenants of foreclosed property.
 
Vetoed by governor 11/9/09
Requires foreclosing lenders to offer mediation to their mortgagors. This act takes effect upon passage and applies to all foreclosure sales for which the first publication of the notice of sale has not occurred.
 
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 shall be paid by the mortgagee as long as the tenant pays any and all rent due to the mortgagee.
 
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.
 
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.
 
Allows for an eviction of a tenant of the mortgagor of property purchased at a foreclosure sale but only for certain reasons such as nonpayment. It also allows for eviction of former owner occupants who become tenants at sufferance after foreclosure for certain reasons and it would require that the purchaser of property sold at a foreclosure sale give notice within seven days to every household residing in that dwelling unit.
 
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.
 
Passed Senate 6/25/09
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. Requires 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. Requires a successor in interest to a foreclosed mortgagor to give tenants written notice to quit at least 60 days in advance.
 
Imposes an immediate 180 day moratorium on foreclosures and actions for evictions of tenants of foreclosed property.
 
Holds any mortgagee or an affiliate of the mortgagee that has purchased a foreclosed property or estate responsible for the maintenance of said property and subject to penalties for violation of code ordinances.
 
Establishes a "Foreclosure Registry" within the Rhode Island Housing and Mortgage Finance Corporation and in conjunction with the Housing Resource Commission.
 
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.
 
Vetoed by governor 11/9/09
Provides for foreclosure counseling and written notice of its availability and would be mailed to the mortgagor 45 days prior to initiating foreclosure proceeding.
South Carolina
Imposes a moratorium on residential mortgage foreclosures in this state for a period of one year except where the party bringing the foreclosure action states by affidavit that the mortgage lender did not steer the borrower into a subprime mortgage loan in certain circumstances.
 
Amends §12-6-40, as amended, relating to the application of the Internal Revenue Code to state tax laws, so as to update the reference to the Internal Revenue Code to the year 2008; amends §12-6-50, as amended, relating to Internal Revenue Code sections not adopted by state law, so as to make additions; and provides that a taxpayer who follows §3094 of the federal Housing Economic Recovery Act of 2008, for South Carolina purposes must not be penalized.
 
Memorializes the United States Congress to implement the Homeowners And Bank Protection Act.
 
Provides that a preexisting rental agreement does not terminate upon the subsequent foreclosure of the landlord's mortgage.
 
Passed House 4/30/09
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.
 
Became law without governor's signature 5/7/09, Act 16
Amends §12-6-40, as amended, relating to the application of the Internal Revenue Code to state tax laws, so as to update the reference to the Internal Revenue Code to the year 2008; amend §12-6-50, as amended, relating to Internal Revenue Code sections not adopted by state law, so as to make additions; and provides that a taxpayer who follows §3094 of the federal Housing Economic Recovery Act of 2008, for South Carolina purposes must not be penalized.
 
Adds §29-3-795 so as to create the South Carolina Foreclosure Database in the Office of the Secretary of State by December 31, 2009; provides information that must be contained in the database and reporting requirements for the information; provides liability may not accrue to the party foreclosing the mortgage or its attorney for certain errors in the provision of information to the database; provides omission of information required by this section does not invalidate a foreclosure; and provides the secretary of state may promulgate rules and regulations necessary to implement the database.
 
Provides for a six-month moratorium on the foreclosure of, and on the accrual of interest on, certain mortgages secured by residential real estate located in South Carolina.
South Dakota
Signed by governor 2/19/09, Chapter 102
Provides for certain filing fees and surcharges in certain civil cases and to provide exemptions in certain cases, including foreclosures.
 
Provides for joinder of judgment creditors as third parties in certain foreclosure actions.
 
Failed to pass House 2/18/09
Endorses the federal Homeowners and Bank Protection Act.
Tennessee
Establishes the Homeowner's Emergency Mortgage Assistance Fund to provide mortgage assistance to eligible mortgagors. The assistance would be in the form of a loan from the Tennessee housing development agency (THDA) to a mortgagor who meets this bill's requirements. This bill requires the repayment of such mortgage assistance back into the Homeowner's Emergency Mortgage Assistance Fund. Homeowners' emergency mortgage assistance fund loans would be made to enable an eligible homeowner to: (1) Bring an existing conventional subprime adjustable rate mortgage loan (subprime ARM) current; (2) Provide equity to allow a refinancing of the existing subprime ARM to a long-term fixed, more affordable interest rate; and (3) Pay various fees associated with a default or delinquency, if any, under an existing subprime ARM and various fees associated with a refinancing of an existing subprime ARM.
 
Delays the sale of land to foreclose a loan, mortgage, or deed of trust on owner-occupied single family residences for a period of time; requires the parties to enter into good faith negotiations during such period to renegotiate the terms and conditions of the loan.
 
H.B. 99
Withdrawn 5/7/09
Delays the sale of land to foreclose a loan, mortgage, or deed of trust for a period of time; requires first publication of notice be at least 90 days prior to sale instead of at least 20 days prior to sale.
 
Requires creditors in certain situations to conduct an in-person meeting with a debtor who is in default to explore options for the debtor to avoid foreclosure.
 
Delays foreclosure proceedings and the eviction of a tenant residing in a single-family residence under certain circumstances.
 
Requires 30 days notice to terminate tenancy of a residential tenant who occupies the residential property at the time of foreclosure or other sale.
 
Extends time for foreclosure notice; requires notice be given to borrower of foreclosure counseling; requires mortgage loans be based upon ability of borrower to repay such loans.
 
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.
 
Delays the sale of land to foreclose a loan, mortgage, or deed of trust on owner-occupied single family residences for a period of time.
 
Signed by governor 5/13/09, Public Chapter 198
Substituted 4/20/09
Makes it an unfair or deceptive act under the Consumer Protection Act to engage in foreclosure-related rescue consultant services for a fee under certain circumstances.
 
Urges Congress to implement the Homeowners and Bank Protection Act.
Texas
Relates to a mortgage servicer’s notice of sale to a debtor and the debtor’s subsequent notice to tenant.
 
Signed by governor 6/19/09, Chapter 323
Amends the Property Code to establish that the purchase price in a sale of foreclosed property held by a trustee or substitute trustee of the property is due and payable without delay, rather than payable immediately, on acceptance of the bid or within such reasonable time as may be agreed upon by the purchaser and the trustee or substitute trustee if the purchaser makes such request for additional time to deliver the purchase price.
 
Passed House 5/1/09
Extends from 30 days to 90 days the period that a tenant has to vacate a building purchased through a tax foreclosure sale or a trustee’s foreclosure sale when the tenant was not in default of the lease and paying timely rent. Requires a mortgage servicer of the debt to provide the debtor in default written notice via first class regular mail, addressed to the debtor at his or her last address, in addition to certified mail. The time frame under which the debtor would have to cure the default would be extended from 20 to 45 days, as would the related provisions for how the notice period is determined. Amends Property Code, ch. 51 by adding that any provision of a contract, agreement, or other document intended to waive a right of a debtor or exempt a mortgage servicer, mortgagee, trustee, substitute trustee, or government official from existing provisions generally applicable to liens would be void.
 
Relates to the filing of an action in connection with foreclosure of a lien on residential real property.
 
Relates to reporting of certain information regarding foreclosure sales of residential real property.
 
Relates to providing notice of foreclosure to certain lien holders.
 
Relates to liens on and foreclosure sales of real property.
 
Relates to notice of a foreclosure sale of real property.
 
Relates to the establishment of the foreclosure prevention program.
 
Relates to notification requirements regarding foreclosure prevention assistance in connection with a home loan.
 
Relates to a municipal program for foreclosure on and improvement of certain property, and the subsequent sale of the property as affordable housing.
 
Relates to the notice required by certain mortgage servicers before foreclosing a contract lien on certain real property; provides civil penalties.
 
Relates to the notice required by mortgage servicers before foreclosing a contract lien on certain real property; provides civil penalties.
 
Relates to requiring foreclosure deferment and reset notification on certain residential mortgages.
 
Relates to a fee imposed on foreclosure filings to fund civil legal services to indigent Texans.
 
Relates to transactions involving residential mortgage foreclosures; provides a penalty.
 
To conference committee 5/23/09
Relates to notice required before and period to vacate after foreclosure sale of real property.
 
Relates to the notice requirements for the foreclosure of a contract lien on certain residential real property.
 
Relates to notices required for tenants and the opportunity to cure default in connection with foreclosure of a lien against residential property; provides a penalty.
 
Relates to foreclosure sales of residential real property; provides a penalty.
 
Relates to the regulation of certain residential mortgage foreclosure consulting services; provides a criminal penalty.
Utah
Signed by governor 3/24/09, Chapter 184
Defines "unlawful detainer"; provides a previous owner, mortgagor, or trustor is guilty of an unlawful detainer if the person remains in possession of property after a forced sale; and allows for an expedited hearing on the issue.
 
Relates to foreclosure amendments, short title only.
Vermont
Signed by governor 5/21/09, Act 29
Amends Vermont law to incorporate the requirements of the federal SAFE Act, including requirements for the licensing of mortgage loan originators; and requires notice to the Department of Banking, Insurance, Securities, and Health Care Administration when foreclosure proceedings are commenced in a Vermont court, for the purpose of coordinating judicial proceedings with the department’s mortgage assistance program.
 
Proposes to update and consolidate statutory provisions regarding foreclosure of mortgages.
 
Adopted 5/8/09
Urges Congress to enact a new Homeowner and Bank Protection Act.
Virginia 
Incorporated into H.B. 2261 2/6/09
Requires certain institutional lenders that are the beneficiary of a first priority deed of trust securing a loan on residential real property that is the primary residence of the grantor, within two days after characterizing the loan as being in default, accelerating the balance due on the loan, or otherwise instituting collection proceedings on the loan as a result of the grantor's failure to make any payment due on the loan, to send written notice to the grantor that the beneficiary has taken such action with respect to the loan, and informing the grantor of any programs or options that the beneficiary provides, conducts, or has knowledge of, that may permit the grantor to avoid foreclosure of the deed of trust, and a telephone number or Internet address through which the grantor may find contact information for counseling agencies approved by the U.S. Department of Housing and Urban Development. The measure prohibits the beneficiary of such a loan that is in default status from unreasonably refusing to provide information regarding the status of the loan or to reply to inquiries from the grantor regarding the status of the loan or programs or options that may permit the grantor to avoid foreclosure. The measure also gives the grantor a new right, exercisable at any time, up to the date of the sale of the property, to cure the default, deaccelerate, and reinstate the loan by paying all sums that would have been due in the absence of default and performing any other obligation that the grantor would have been bound to perform in the absence of the default or acceleration. The grantor may exercise the right to cure a default as to a particular loan and reinstate that mortgage once every 18 months. The measure expires January 1, 2012.
 
Signed by governor 3/27/09, Chapter 442
Authorizes the cancellation of a policy insuring an owner-occupied dwelling on grounds that the property secured by the policy has been sold pursuant to foreclosure of a deed of trust encumbering the property.
 
Failed to pass House 2/28/09
Requires a landlord to give written notice to the tenant of a mortgage default, notice of mortgage acceleration, or notice of foreclosure sale relative to the loan on the dwelling unit, within five business days after written notice from the lender is received by the landlord. The bill provides that it does not apply (i) to any managing agent who does not receive a copy of such written notice from the lender or (ii) if the tenant provides a copy of the written notice from the lender to the landlord or the managing agent.
 
Signed by governor 4/8/09, Chapter 803
Permits localities in Planning District 8 to adopt an ordinance to require that a notice be given to the chief administrative officer when residential property becomes subject to a sale under a deed of trust.
 
Signed by governor 3/27/09, Chapter 203
Signed by governor 3/27/09, Chapter 272
Provides that the prohibition on fraudulent acts or practices committed by a supplier in a consumer transaction involving residential real property owned and occupied as the primary dwelling unit of the owner applies when the supplier of service to avoid or prevent foreclosure charges or receives a fee (i) prior to the full and complete performance of the services it has agreed to perform, if the transaction does not involve the sale or transfer of residential real property, or (ii) prior to the settlement on the sale or transfer of residential real property, if the transaction involves the sale or transfer of the property. Currently, any practice where a supplier of a foreclosure avoidance or prevention service is to be paid a fee prior to the settlement on a sale of residential real property is prohibited, regardless of whether the fee is charged or collected as part of the transaction involving a sale of the property.
 
Signed by governor 3/27/09, Chapter 307
Provides that the written notice of proposed sale, when given in a manner provided by general law, shall be deemed prima facie evidence of compliance with any requirement to provide notice of default contained in a deed of trust, provided that failure to comply with any requirements for notice of default that may be contained in such deed of trust shall, upon petition, render a sale of the property voidable by the court.
Washington
Passed House 2/23/09
Signed by governor 3/25/09, Chapter 15
Exempts licensed real estate brokers and salespersons from the definition of "distressed home consultant" when the broker or salesperson is providing services governed under the real estate brokerage laws and the services do not result in a distressed home conveyance. Specifies that offering certain services does not make a person a distressed home consultant when the homeowner is represented by an attorney or a licensed real estate broker or salesperson in the transaction. Changes the definitions of "dwelling" and "homeowner."
 
Signed by governor 4/17/09, Chapter 122
Provides that surplus proceeds from a mortgage foreclosure sale must be applied to other interests in or liens or claims against the property before being paid to the mortgage debtor.
 
Signed by governor 4/30/09, Chapter 292
Requires a mortgagee or beneficiary, before filing a notice of default, to contact the borrower and assess the borrower's financial situation and explore alternatives to foreclosure. Provides that a tenant of residential property that was sold in foreclosure shall have 60 days written notice before the tenant may be removed from the property. Provides that the borrower's failure to bring a court action to enjoin a foreclosure does not waive certain claims the borrower may have, such as claims based on fraud or breach of a trustee's duty. Specifies duties owed by the trustee to the borrower.
 
Signed by governor with line item veto 5/7/09, Chapter 386
Creates the prevent or reduce owner-occupied foreclosure program.
West Virginia
Signed by governor 4/21/09
Amends the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §31A-2-4c; amends said code by adding thereto a new section, designated §38-1-8a; amends said code by adding thereto a new section, designated §44-13-4a; and amends and reenacts §59-1-10 of said code, all relating to the gathering and reporting of foreclosure data and statistics; provides for the gathering and reporting of information pertaining to sales of residential real estate pursuant to deeds of trust; provides for the compilation and filing of data by trustees with the report of sales filed with the county clerks; provides for the periodic forwarding of gathered information to the commissioner of Banking; identifies the minimum information to be provided; provides for fees to be paid for receipt and processing of the filed information; provides for the reporting of foreclosure statistics by the commissioner of Banking; authorizes the commissioner of Banking to establish appropriate forms and filing requirements and procedures by rule.
 
Urging Congress to implement the Homeowners and Bank Protection Act.
 
Urges Congress implement the Homeowners and Bank Protection Act.
 
Requests the Joint Committee on Government and Finance study existing West Virginia law relating to the current mortgage crisis and its impact on the citizens of West Virginia and our financial institutions.
Wisconsin
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.
 
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 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.
 
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.