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Foreclosures 2011 Legislation

Foreclosures 2011 Legislation

(Excludes foreclosures due to tax delinquencies and homeowner associations)

Last Updated: February 20, 2012

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

The housing market continues to be turbulent. Delinquent payments and the number of homeowners entering foreclosure continue to rise, affecting even prime and FHA loans. Job losses and continued unemployment are now driving the delinquency and foreclosure increases. The employment recovery is progressing slowly. State legislators and other policymakers will be watching to see if foreclosure mediation and other programs designed to help homeowners are actually working to keep people in their homes, or if the programs need to be adjusted to help more homeowners.

In 2011, lawmakers in 44 jurisdictions, the District of Columbia and Puerto Rico introduced legislation regarding foreclosures. The list below contains legislation regarding regulating foreclosure consultants and distressed property purchasers, amending the foreclosure process to address concerns regarding so-called robo-signing and protecting tenants' rights who are renting homes facing foreclosure. Twenty-eight states, the District of Columbia and Puerto Rico enacted legislation or adopted resolutions in 2011. For example, Colorado extended its foreclosure deferment program to 2016, allowing public trustees to delay up to 90 days the scheduled sale of foreclosed property. The District of Columbia enacted emergency legislation that requires mortgage lenders to provide homeowners with a notice of default on residential mortgages and to provide homeowners with the right to engage in mediation prior to foreclosure on residential mortgages. Michigan amended its process for modifying mortgages. Texas required the state Department of Housing and Community Affairs to compile foreclosure data. Utah modified provisions regarding trust deed foreclosures. Virginia required a landlord to disclose in writing to any prospective tenant if he has received any notice of mortgage default, notice of mortgage acceleration, or notice of foreclosure sale relative to the loan on the dwelling unit. Wyoming specified conditions under which a foreclosure sale can be rescinded by a seller.

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STATE
BILL SUMMARY
Alabama

H.B. 343
Indefinitely postponed 6/1/11
Under existing law, certain parties may redeem real property sold pursuant to an execution, judgment, or foreclosure sale for up to one year from the date of the sale. This bill reduces the time period to exercise the right of redemption for all property other than agricultural property to 90 days from the date of the execution, judgment, or foreclosure sale, but would retain the one-year period to exercise the right of redemption for property used for agricultural or forestry purposes. The bill applies to all foreclosure sales that occur on or after September 1, 2011.

S.B. 263
Indefinitely postponed 6/1/11
Under existing law, certain parties may redeem real property sold pursuant to an execution, judgment, or foreclosure sale for up to one year from the date of the sale. This bill reduces the time period to exercise the right of redemption for all property other than agricultural property to 90 days from the date of the execution, judgment, or foreclosure sale, but would retain the one-year period to exercise the right of redemption for property used for agricultural or forestry purposes. The bill applies to all foreclosure sales that occur on or after September 1, 2011.

Alaska
none
Arizona

H.B. 2123
For any residential property for which the city, town or county receives a notice of pending foreclosure pursuant to §33-807, the city, town or county on its own motion may inspect the exterior of the property and send notice to the beneficiary of the deed of trust to remove rubbish, trash, weeds or other accumulation of filth, debris or dilapidated structures that constitute a hazard to public health and safety from buildings, grounds and lots of the trust property. Thereafter, the beneficiary is properly noticed as a party to any order to remove or abate the hazard pursuant to this section, including any order regarding payment of costs or an assessment. The trustee shall pay all assessments levied pursuant to this section against the trust property and, on recordation of a release of assessment lien by the city, town or county, may proceed with a notice of sale pursuant to §33-807. If the city or town does not send a notice to the beneficiary within 90 days after receiving the notice of pending foreclosure, the city, town or county waives its authority to order any removal against the beneficiary pursuant to this section, and the beneficiary may proceed with a notice of sale pursuant to §33-807.

H.B. 2124
Allows for the temporary 60-day stay of trustee's sale, during which the owner shall have the opportunity to negotiate a revised payment or other revised terms of the loan and may accept the assistance of a representative of a private nonprofit organization, a representative of a city, town, county or state government or a representative of a federal agency to assist the owner in meeting with and negotiating a resolution with the lender. The trustee shall assist in providing information, including lender contact information, and shall cooperate with any meetings and negotiations that occur between the owner and lender.

H.B. 2383
Provides that mortgage servicers shall make reasonable and good faith efforts consistent with usual and customary industry standards and this article to engage in appropriate loss mitigation options, including loan modifications, to avoid foreclosure. Servicers must have adequate staffing, written procedures, resources and facilities to provide timely and appropriate responses to borrower inquiries and complaints regarding available loss mitigation options and to ensure that borrowers are not required to submit multiple copies of required documents during consideration for a loss mitigation option.

H.B. 2430
Provides that the trustee may not exercise the power of sale on the property for at least one year if the homeowner properly notifies the beneficiary that the homeowner wishes to occupy the property as a renter, and a month-to-month periodic tenancy between the beneficiary and homeowner exists as specified.

H.B. 2602
Provides that for any property that is owned by a person who was the foreclosing beneficiary of a deed of trust on the property and who acquired the property at a trustee's sale, the following apply: 1. the homeowners association may inspect the exterior of the property and, after notice to the owner, may remove rubbish, trash, weeds or other accumulation of filth and debris and may repair dilapidated structures that constitute a hazard to public health and safety. 2. The owner is liable to the association for the reasonable costs of the removal or repair, and the association may place a lien on the property for the costs reasonably incurred in the removal or repair as otherwise provided by law.

H.B. 2626
Requires a notice of trustee’s sale to include a statement that a trustee may postpone the sale one or more times. The trustee must make the rescheduled date and time available upon request.

H.B. 2632
Provides that if a tenant or subtenant is lawfully in possession of the property when a foreclosure action is initiated, the tenant may continue to rent the property for the remainder of the lease period or for an additional 90 days after the recording of the conveyance to the new owner, whichever is longer. During the remainder of the lease or the 90 days, whichever applies, the new owner is limited to and obligated as the landlord on the existing terms of the lease, including the amount of any rent.

H.B. 2641
Regulates equity purchasers and mortgage consultants; amends provisions regarding reconveyance arrangements, primary residences, trustee's deed on sale, court order or judgment, encumbrancer for value, foreclosure consultant, sale of a residence, covered contracts, notices required by state law and notices of cancellation.

H.B. 2642
Establishes a mandatory foreclosure mediation program in the administrative office of the courts. The state supreme court shall oversee the mandatory foreclosure mediation program to provide mediation in the superior court for nonjudicial foreclosures of deeds of trust on owner-occupied residential property. The program shall address all issues of foreclosure, including reinstatement of the deed of trust, modification of the loan and restructuring of the debt. Mediations conducted pursuant to the program shall use the calculations, assumptions and forms that are established by the federal deposit insurance corporation and published in the federal deposit insurance corporation loan modification program guide as set out on the federal deposit insurance corporation's publicly accessible Website.

Arkansas

H.B. 1811
Signed by governor 3/31/11, Act 885
Requires additional information and encourages loss mitigation and loan modifications before initiating a statutory foreclosure.

H.B. 2085
Signed by governor 3/31/11, Act 901
Amends provisions of the Arkansas Code related to statutory foreclosures, including trustee provisions.

California

A.B. 856
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 federal Emergency Economic Stabilization Act of 2008 extended the operation of those provisions to debt that is discharged before January 1, 2013. This bill would provide further conformity to those federal acts, as provided.

A.B. 935
This bill, until January 1, 2015, for loans already originated as of the date that this bill becomes effective, with some exceptions, prohibits a notice of trustee's sale from being accepted for filing with the county recorder until the mortgage servicer pays a foreclosure mitigation charge of $20,000. It requires the county recorder to keep the moneys in trust until a notice of rescission is filed, at which time the moneys would be returned to the mortgage servicer, or until a trustee deed of sale is filed, at which time the moneys would be transmitted to the treasurer for deposit in the Foreclosure Mitigation Fund, which would be created by the bill; the interest earned on the moneys would be retained by the county recorder in either case. The fund would be continuously appropriated for distribution by the treasurer to local agencies for specified purposes.

A.B. 1321
This bill requires that mortgages and deeds of trust as well as assignments of a mortgage or a deed of trust be recorded within 30 days of the execution of the deed or other document creating a security interest in the real property or within 30 days of execution of the assignment. The bill further requires that either the promissory note or a specified certificate affirming the existence of the promissory note be attached at the time of recordation. This bill prohibits the mortgagee, trustee, or beneficiary from recording a notice of default until 45 days after it has recorded the mortgage or deed of trust and any assignment of the mortgage and deed of trust.

S.B. 4
Signed by governor 9/6/11, Chapter 229
Existing law requires a lender to file a notice of default in the case of nonjudicial foreclosure prior to enforcing a power of sale as a result of a default on an obligation secured by real property, as specified. Existing law also requires that a notice of sale be given before the power of sale may be exercised. Existing law requires the notice of sale to contain specified information regarding the property and the sale, and to be recorded with the county recorder, as specified. This bill additionally requires, beginning April 1, 2012, that the notice of sale, given pursuant to a deed of trust or mortgage secured by real property containing from one to four single-family residences, contain language notifying potential bidders of specified risks involved in bidding on property at a trustee's sale, and a notice to the property owner informing the owner about how to obtain information regarding any postponement of the sale. The bill requires a good faith effort to be made to provide current information regarding sale dates and postponements and that the information be available free of charge. The bill permits the information to be provided by any means that provides continuous access, as specified.

S.B. 62
Signed by governor 8/1/11, Chapter 141
Existing law authorizes the Los Angeles County Recorder, following the adoption of an authorizing resolution by the Los Angeles County Board of Supervisors, to mail a notice of recordation to the party or parties executing a deed, quitclaim deed, or deed of trust within 30 days of the recording of one of those documents. This bill, until January 1, 2015, modifies that authorization to additionally include notice of default or notice of sale, provided by mail by the recorder or a designee of the board, to a party or parties subject to a notice of default or notice of sale of a property, including the occupants of that property, within five days, but in any event no more than 20 days, of recordation. If the board of supervisors adopts an authorizing resolution, as specified, the bill requires the County of Los Angeles to submit a report with prescribed information to certain committees of the Legislature on or before January 1, 2014. Existing law also authorizes the Los Angeles County Recorder to collect a fee for mailing notice of recordation from any party filing a deed, quitclaim deed, or deed of trust, unless that party is a government entity. Existing law prohibits this fee from exceeding the cost of mailing the notice of recordation, not to exceed $7. This bill, until January 1, 2015, additionally authorizes the recorder to collect a fee for notice of recordation from any party other than a government entity that files a notice of default or notice of sale. The bill also authorizes the recorder to use a portion of the collected fee to pay the actual cost of providing information, counseling, and assistance to a person who receives the notice. The bill authorizes administrative costs incurred by the recorder to be included as a portion of the actual costs that comprise the fee, as specified. This bill makes legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.

S.B. 412
Existing law prohibits a deficiency judgment if real property or an estate for years has been sold by the mortgagee or trustee under power of sale in the mortgage or deed of trust. Existing law also prohibits a deficiency judgment under a note secured by a first deed of trust or first mortgage for a dwelling of not more than four units in any case in which the trustor or mortgagor sells the dwelling for less than the remaining amount of the indebtedness due at the time of sale with the written consent of the holder of the first deed of trust or first mortgage, and provides that written consent of the holder of the first deed of trust or first mortgage to that sale obligates the holder to accept the sale proceeds as full payment and to fully discharge the remaining amount of the indebtedness on the first deed of trust or first mortgage. This bill deletes the provisions regarding written consent of the holder of the deed of trust or mortgage obligating the holder to accept the sale proceeds as full payment, as described above. The bill expands the provisions described above to prohibit a deficiency judgment upon a note secured solely by a deed of trust or mortgage for a dwelling of not more than four units in any case in which the trustor or mortgagor sells the dwelling for a sale price less than the remaining amount of the indebtedness outstanding at the time of sale, in accordance with the written consent of the holder of the deed of trust or mortgage if the title has been voluntarily transferred to a buyer by grant deed or by other document that has been recorded and the proceeds of the sale are tendered as agreed. The bill also provides that, in other circumstances, when the note is not secured solely by a deed of trust or mortgage for a dwelling of not more than four units, no judgment shall be rendered for any deficiency upon a note secured by a deed of trust or mortgage for a dwelling of not more than four units, if the trustor or mortgagor sells the dwelling for a sale price less than the remaining amount of the indebtedness, in accordance with the written consent of the holder of the deed of trust or mortgage. The bill provides, following the sale, in accordance with the written consent, the voluntary transfer of title to a buyer, as specified, and the tender of the sale proceeds, the rights, remedies, and obligations of any holder, beneficiary, mortgagee, trustor, mortgagor, obligor, obligee, or guarantor of the note, deed of trust, or mortgage, and with respect to any other property that secures the note, shall be treated and determined as if the dwelling had been sold through foreclosure under a power of sale, as specified. The bill excepts certain parties from the application of these provisions, including if the trustor or mortgagor is a limited liability company or partnership or if a public utility, as specified, made the mortgage or deed of trust. The bill requires that any waiver of these provisions is void and against public policy.

S.B. 435
Existing state and federal law regulate the terms and conditions of mortgages and deeds of trust. Upon the failure to satisfy specified terms of these obligations, existing state law requires that a notice of default be sent to a mortgagor or trustor indicating the property securing the loans may be foreclosed upon and that he or she has the right to cure the default and bring the account into good standing. Existing law requires this notice to include a statement indicating the name, address, and telephone number of the beneficiary or mortgagee for the purpose of finding out the amount that is due. This bill also permits the notice to reference the authorized agent of the beneficiary or mortgagee on the notice described above. Existing law regulates the sales of property pursuant to a power of sale in a mortgage or deed of trust, including prescribing the times and locations of these sales. Existing law permits these sales to be postponed, as specified, at any time prior to the completion of the sale, for any period of time not to exceed a total of 365 days from the date set forth in the notice of sale, after which time a new notice of sale must be given, as prescribed. This bill permits these sales to ?!o=MN8?Dgpe*XVo&}]qm*K :H2o exceed one year from the date set forth in the notice of sale. Existing law permits a trustee under a trust deed whose duties are exclusively related to the power of sale contained in the deed to be substituted if certain conditions are met. If the substitution occurs after a notice of default has been recorded but prior to the recording of the notice of sale, existing law requires that the beneficiary or his or her authorized agent give notice of this, as specified. This bill conditions the requirement that the notice of trustee substitution be sent on the notice of default not having been rescinded.

S.B. 458
Signed by governor 7/11/11, Chapter 82
Existing law prohibits a deficiency judgment under a note secured by a first deed of trust or first mortgage for a dwelling of not more than four units in any case in which the trustor or mortgagor sells the dwelling for less than the remaining amount of the indebtedness due at the time of sale with the written consent of the holder of the first deed of trust or first mortgage. Existing law provides that written consent of the holder of the first deed of trust or first mortgage to that sale shall obligate that holder to accept the sale proceeds as full payment and to fully discharge the remaining amount of the indebtedness on the first deed of trust or first mortgage. Existing law specifies that those provisions would not limit the ability of the holder of the first deed of trust or first mortgage to seek damages and use existing rights and remedies against the trustor or mortgagor or any third party for fraud or waste if the trustor or mortgagor commits either fraud with respect to the sale of, or waste with respect to, the real property that secures that deed of trust or mortgage. Existing law makes these provisions inapplicable if the trustor or mortgagor is a corporation or political subdivision of the state. This bill expand those provisions to prohibit a deficiency judgment upon a note secured solely by a deed of trust or mortgage for a dwelling of not more than four units in any case in which the trustor or mortgagor sells the dwelling for a sale price less than the remaining amount of the indebtedness outstanding at the time of sale, in accordance with the written consent of the holder of the deed of trust or mortgage if the title has been voluntarily transferred to a buyer by grant deed or by other document that has been recorded and the proceeds of the sale are tendered as agreed. The bill also provides that, in other circumstances, when the note is not secured solely by a deed of trust or mortgage for a dwelling of not more than four units, no judgment shall be rendered for any deficiency upon a note secured by a deed of trust or mortgage for a dwelling of not more than four units, if the trustor or mortgagor sells the dwelling for a sale price less than the remaining amount of the indebtedness, in accordance with the written consent of the holder of the deed of trust or mortgage. The bill provides, following the sale, in accordance with the written consent, the voluntary transfer of title to a buyer, as specified, and the tender of the sale proceeds, the rights, remedies, and obligations of any holder, beneficiary, mortgagee, trustor, mortgagor, obligor, obligee, or guarantor of the note, deed of trust, or mortgage, and with respect to any other property that secures the note, shall be treated and determined as if the dwelling had been sold through foreclosure under a power of sale, as specified. The bill prohibits the holder of a note from requiring the trustor, mortgagor, or maker of the note to pay any additional compensation, aside from the proceeds of the sale, in exchange for the written consent to the sale. The bill provides that these provisions are inapplicable if the trustor or mortgagor is a corporation, limited liability company, limited partnership, or political subdivision of the state. The provisions would also be inapplicable to any deed of trust, mortgage, or other lien given to secure the payment of bonds or other evidence of indebtedness authorized, or permitted to be issued, by the commissioner of Corporations, or that is made by a public utility subject to the Public Utilities Act. The bill provides that any purported waiver of these provisions shall be void and against public policy.

S.B. 729
Returned to secretary of Senate pursuant to Joint Rule 62(a) 5/5/11
This bill prohibits a mortgagee, trustee, beneficiary, or authorized agent from recording a notice of default unless that party makes reasonable and good faith efforts to evaluate the borrower for all available loss mitigation options to avoid foreclosure. The bill prohibits a mortgagee, trustee, beneficiary, or authorized agent from recording a notice of default on residential mortgages and deeds of trust, as defined, until various notice requirements and other requirements regarding loan modifications are fulfilled. The bill includes among these requirements informing the borrower of the deadline for applying for a loan modification, which would be prohibited from being earlier than a specified date. The bill prohibits a mortgagee, trustee, or beneficiary from recording a notice of default on a residential mortgage or deed of trust if a borrower who is eligible for a loan modification submits an application, as specified, unless the mortgagee, trustee, or beneficiary has, in good faith, reviewed the application, rendered a decision on the application, and sent the borrower a denial explanation letter. The bill provides a process for reviewing a mortgage loan modification application, which would depend, in part, on whether the mortgage servicer, as defined, is participating in the federal Making Home Affordable Modification Program. The bill exempts certain borrowers from these requirements. The bill requires that a borrower who requests a loan modification and is denied receive a denial explanation letter stating the reason or reasons for the denial, as specified. The bill requires a mortgage servicer to whom the provisions described above apply, to perform specified actions as part of foreclosing on a residential mortgage or deed of trust, including compiling a record documenting compliance with those provisions, which would be signed, certified, and transmitted to the foreclosure trustee or authorized agent. The bill requires the declaration of compliance to be included or attached to every notice of default recorded, as specified, and a notice of default recorded without the compliance declaration would be void. The bill prescribes a form for the declaration and requires that the declaration substantially comply with it. The bill permits an eligible borrower to enjoin a trustee sale if provisions of the bill are not satisfied, and would authorize a borrower to recover damages, attorney's fees, and costs, as specified, if the property is sold without compliance with the bill's requirements. The bill permits the attorney general to enforce these provisions. The bill also establishes other penalties for certain acts, including for a false declaration of a lost note representing a mortgage or deed of trust. The bill provides that any person licensed by the state of California who violates the bill's provisions is deemed to have violated the licensing law. The bill requires certain information to be recorded with a notice of default and to be provided with the notice of default sent to a borrower.

Colorado

H.B. 1023
Signed by governor 3/1/11, Chapter 1
The bill continues the existing foreclosure deferment program, which is scheduled to expire in 2011, until 2016.

H.B. 1136
Postponed indefinitely 4/6/11
Authorizes the Division of Housing in the Department of Local Affairs (division) to accept and expend moneys collected by public trustees and deposited in a newly created fund, the Foreclosure Prevention Counseling Fund (fund). Specifies that the moneys in the fund shall be used to support foreclosure prevention efforts by housing counseling agencies approved by the United States Department of Housing and Urban Development, and requires such agencies to collect and maintain certain information regarding activities financed with fund moneys. Authorizes and directs the public trustee of each county to: Collect, beginning July 1, 2011, a $240 surcharge upon the filing of each document notifying the public trustee that posting is required under the foreclosure deferment laws; separately account for, and maintain a cumulative total of, the surcharge moneys thus collected; and remit the surcharge moneys to the state treasurer, at least quarterly, to be credited to the fund. Allows a public trustee to collect a $10 fee for the costs of collecting the surcharge. Holders filing 15 or fewer notices of election and demand in a county are permitted to pay the surcharge on an annual basis. Sets forth circumstances and procedures under which a public trustee may waive the surcharge. Provides a future repeal date for the public trustees' new duties and the reversion of any unexpended and unencumbered moneys to the general fund in 2016. Prior to that repeal, the division is required to report to the General Assembly regarding the fund. States that an officer (i.e., a public trustee or sheriff conducting a foreclosure sale) is neither responsible nor liable for determining the legal sufficiency of an affidavit filed when a holder qualifies for waiver from the surcharge.

H.B. 1139
Postponed indefinitely 4/19/11
The bill prohibits a creditor of a consumer loan and a credit union, savings and loan association, state bank, industrial bank, or mortgage lender from attempting to collect its debt from a debtor's personal liability under a secured loan that is in default unless the lender has first attempted to collect its debt from the collateral and the proceeds from the collateral are insufficient to fully repay the sum of the outstanding loan balance and the lender's allowable costs of collection, if any.

S.B. 122
Postponed indefinitely 2/6/11
Current law allows a person to purchase, often at a premium, a junior lien with high priority on property in foreclosure and redeem the lien from the purchaser (that is, from the person who either held a senior lien and foreclosed on it or submitted the highest bid at the foreclosure sale) after the foreclosure sale. The bill limits this ability by allowing the purchaser to pay off the junior lien at face value through the public trustee, without having to find and tender payment to the junior lienor and without giving the junior lienor an opportunity to refuse payment and redeem the property instead. The bill also adds specific requirements for verifying the validity and amount of a debt enforced pursuant to the "Colorado Common Interest Ownership Act" on behalf of a unit owners' association.

Connecticut

H.B. 5812
Failed Joint Favorable deadline 4/26/11
Expands the foreclosure mediation program.

H.B. 6061
Failed Joint Favorable deadline 4/15/11
Prohibits a mortgagee, lienholder or successor in interest from evicting a tenant, after a foreclosure action, during the term of a rental agreement if the tenant continues to pay rent and otherwise complies with the terms of the rental agreement.

H.B. 6065
Failed Joint Favorable deadline 4/15/11
Allows a landlord a defense in a foreclosure action, when the unemployment rate is high, that their tenants are unable to pay their rent because the tenants are unable to find employment.

H.B. 6223
Failed Joint Favorable deadline 3/17/11
Requires a mortgagee participating in the foreclosure mediation program to offer proof at the first mediation session that such mortgagee is the rightful owner of the underlying mortgage note.

H.B. 6351
Signed by governor 7/13/11, Public Act 11-201
This bill makes changes in several programs and laws related to foreclosure as well as other banking- and housing-related issues. The bill makes various changes in the judicial branch's foreclosure mediation program, including (1) extending the program's sunset date by two years, until July 1, 2014, for foreclosure actions with return dates on or after July 1, 2009; (2) extending the program to properties owned by religious organizations; (3) generally prohibiting the parties from making motions, other than those related to the mediation, for the eight months following the return date; and (4) increasing documentation requirements. The bill creates a task force to study the Connecticut Housing Finance Authority's loss mitigation programs. The bill excludes from the state's overtime pay requirements mortgage loan originators designated as highly compensated employees under federal regulations, other than originators who work solely from an employer's office. The bill codifies into state law the federal Protecting Tenants at Foreclosure Act, with a sunset date of December 31, 2017, that extends its protections beyond the federal act's December 31, 2014 expiration. Public Act 09-144 created a registration system for tracking the owners of uninhabited one-to-four family residential property obtained through foreclosure. The bill establishes a new registration requirement that applies to a broader class of buildings when the foreclosure process begins, and expands the scope of the existing registration requirement. It provides civil penalties for violations. It also makes other changes to the mechanics of the registration process.

H.B. 6463
This bill extends, from July 1, 2012 until July 1, 2014, the judicial foreclosure mediation program's termination date. In addition, the bill: 1. limits the types of actions mortgagees and courts may take against mortgagors participating in the program, 2. extends the time during which mortgagees and courts are prohibited from taking these actions for 15 days past the earlier of the mediation period's expiration or termination, and 3. suspends the mortgagor's obligation to respond in the foreclosure action for the same 15-day period. The bill eliminates the current 30-day limit on mediation extensions, thus allowing the court to set extension periods over 30 days at its discretion and for good cause shown. In the absence of an extension, the law requires the mediation period to conclude by the 60th day after the foreclosure action return date. The bill specifies that it does not affect any notice of default or judgment entered on or before June 30, 2011.

S.B. 339
Failed Joint Favorable deadline 4/15/11
Repeals provisions concerning foreclosure by a person to whom the legal title to the mortgaged premises has not been conveyed.

S.B. 905
Failed Joint Favorable deadline 3/17/11
Convenes a task force to review and evaluate the existing loss mitigation programs administered by the Connecticut Housing Finance Authority.

S.B. 950
This bill requires a mortgagee (lender) initiating a foreclosure action on an owner-occupied one-to-four family residential property to notify the mortgagor (borrower) of the contact information for a person the mortgagee authorizes to process requests to refinance or modify the mortgage or take other actions to avoid foreclosure. The bill allows the mortgagee, upon notice, to later assign a different individual with such authority. The requirement applies to foreclosure actions with a return date on or after October 1, 2011. The bill also authorizes a court to delay the entry of a judgment of strict foreclosure, foreclosure by sale, or a deficiency judgment (when the value of the property is not enough to pay the debt) on the mortgagee's behalf when, in the court's judgment, the delay is appropriate or required under the facts and circumstances if the court finds that the mortgagee: (1) failed to provide the notice and contact information required by the bill; (2) failed to respond within a reasonable time to the mortgagor's request to refinance or modify the mortgage to avoid foreclosure; or (3) engaged in conduct with respect to the mortgagor that the court determines would constitute an unfair or deceptive act or practice in violation of the Connecticut Unfair Trade Practices Act.

S.B. 957
Passed Senate 5/20/11
Public Act 09-144 created a registration system for tracking the owners of uninhabited one-to-four family residential property obtained by strict foreclosure or foreclosure by sale (“registrants”). It allowed municipalities to enforce against a registrant any statutory provision or municipal ordinance on property repair or maintenance after the municipality had provided notice and an opportunity to remedy the situation. This bill amends this registration requirement in various ways. For example, it extends the requirement to commercial as well as residential property, expands the type of residential property that is subject to the requirement, and eliminates the requirement that the property be vacant. It also requires registration sooner, applying the requirement when someone commences a foreclosure action rather than when the person takes title to the property. The bill requires registrants to update their information after title vests in them. It prohibits a municipality from issuing a violation notice to a registrant until that time, and makes other changes to the notice requirements following a violation. The bill provides a $ 100 civil penalty for each day someone violates the registration requirements. It permits authorized municipal officials to bring a civil action to collect the penalties, which are payable to the municipality's treasurer. The bill makes other changes to the mechanics of the registration process, including requirements regarding notice and required registration information.

S.B. 1074
Failed Joint Favorable deadline 4/15/11
Repeals provisions of the general statutes that permit title to mortgaged premises, which title has never been conveyed, to vest in a person entitled to receive the money secured by such mortgage in a foreclosure proceeding, in the same manner as such title would have vested in the mortgagee if the mortgagee had foreclosed, after the expiration of time for redemption and recording in the land records.

S.B. 1212
This bill allows certain tenants who live in multi-family buildings that have been foreclosed upon to continue to live there unless (1) the foreclosing party has entered into an agreement to sell the building in which the buyer requires the building to be vacant as a condition of sale or (2) there is good cause to evict the tenant (e.g., nonpayment of rent). The bill applies in addition to existing law's protections for tenants of foreclosed properties. The bill provides that disputes about the rental amount when such a tenant is occupying a property after foreclosure may be resolved by a fair rent commission, where available, or a Superior Court. The bill specifies that the bill, existing law's protections for tenants of foreclosed properties, and the federal Protecting Tenants at Foreclosure Act do not limit or supersede a tenant's rights under any law (including existing protections for certain tenants who are at least age 62, blind, or disabled) to continue to occupy a foreclosed property. It also specifies that it does not prevent a foreclosing party from negotiating an incentive agreement (i.e., “cash for keys”) for the tenant to vacate the property, as long as the foreclosing party clearly informs the tenant that, under the bill, the tenant cannot be evicted without cause.

Delaware

H.B. 57
Signed by governor 9/21/11, Chapter 199
Requires an affidavit of loss mitigation prior to a plaintiff seeking the entry of judgment in a foreclosure action in order to ensure homeowners are considered for loan modifications before a foreclosure action is concluded with respect to their residence.

H.B. 58
Signed by governor 9/21/11, Chapter 200
Establishes the Automatic Residential Mortgage Foreclosure Mediation Program in order to ensure homeowners have an opportunity to meet face-to-face with lender representatives and mediate both retention and non-retention options before a judgment is entered or a sheriff’s sale occurs. This codifies an expanded version of the Residential Mortgage Foreclosure Mediation Program currently run by the Superior Court under its Administrative Directive 2011-2, as first established under the Superior Court’s Administrative Directive 2009-3. The Automatic Residential Mortgage Foreclosure Mediation Program expands access to mediation to all homeowners of owner-occupied residential one-to-four family properties and eliminates financial qualification rules set forth in the existing mediation program. This will ensure that mediation can bring all homeowners facing foreclosure on their residence together in face-to-face meetings with representatives of their lender to address not just possible loan modifications, but other mutually agreeable resolutions short of a sheriff’s sale. Requires that plaintiffs pay a court-determined mediation fee in foreclosure actions for which mediation will occur; this fee is to be set by the court in an amount to defray the costs of the mediation program. Sets out certain requirements for the filing of a complaint or summons in a mortgage foreclosure action, including that the filing be accompanied by certain documentation related to the notices. Extends the period for a defendant to file an answer in mortgage foreclosure actions that are subject to the mediation program until the date of any scheduled mediation conference.

H.B. 59
Signed by governor 9/21/1, Chapter 198
This bill provides for an office within the Division of Consumer Protection to identify mortgage foreclosure fraud, to reduce foreclosure, and to promote financial literacy. In addition, the office will receive calls from borrowers in default and make appropriate referrals to housing counselors or other agencies. The outreach coordinator will be responsible for acting as a liaison with servicers in some circumstances and participating as necessary in any mediation activity. The office will exist for a period of three years from the date it is created pursuant to this bill.

S.B. 42
Signed by governor 9/21/11, Chapter 196
This bill provides that the Mortgage Rescue Fraud Protection Act in 6 Del. C. Chapter 24B will protect homeowners 60 days in default on their mortgage loans. Currently the protections are in effect after an action for foreclosure is filed. This bill creates a registration requirement for mortgage loan modification companies that provide services to Delaware residents. Written contracts with disclosures are required and no fees can be collected in advance. The registration and renewal fees can be used to support foreclosure relief programs. The law is enforced by the attorney general.

S.B. 48
Signed by governor 9/21/11, Chapter 197
This Act prohibits the use of a deceptive or fraudulent record, document, or statement to support an action to foreclose.

S.B. 121
Signed by governor 7/1/11, Chapter 71
This Bill permits sheriff sales to be conducted at the Sheriff’s Office, even though the Sheriff’s Office is no longer located in Kent County Courthouse.

District of Columbia

B19-57
Signed by mayor 2/11/11, A19-0008
Amends, on an emergency basis, due to Congressional review, an act to establish a code of law for the District of Columbia to require mortgage lenders to provide homeowners with a notice of default on residential mortgages and to provide homeowners with the right to engage in mediation prior to foreclosure on residential mortgages.

B19-419
Signed by mayor 8/9/11, A19-0147
Amends, on an emergency basis, aAn act to establish a code of law for the District of Columbia to provide that a borrower shall have the same rights for a defective notice of default on residential mortgage as the law provides for a defective notice of intention to foreclose on a residential mortgage, that a foreclosure sale shall be void if a lender files a notice of intention to foreclose on a residential mortgage without a mediation certificate, and to amend the definition for the term “residential mortgage.”

B19-420
Passed Congressional review period 11/26/11, L19-0041
Amends, on a temporary basis, the Saving D.C. Homes from Foreclosure Amendment Act of 2010 to provide that a borrower shall have the same rights for a defective Notice of Default on Residential Mortgage as the law provides for a defective Notice of Intention to Foreclose on a Residential Mortgage, that a foreclosure sale shall be void if a lender files a Notice of Intention to Foreclose on a Residential Mortgage without a mediation certificate, and to amend the definition for the residential mortgage.

PR19-48
Adopted 2/11/11, R19-0015
Declares the existence of an emergency, due to Congressional review, with respect to the need to require mortgage lenders to provide homeowners with a notice of default on residential mortgages; and to provide homeowners with the right to engage in mediation prior to foreclosure on residential mortgages.

PR19-344
Adopted 7/12/11, R19-0229
Declares the existence of an emergency with respect to the need to amend the Saving D.C. Homes from Foreclosure Amendment Act of 2010 to provide that a borrower shall have the same rights for a defective Notice of Default on Residential Mortgage as the law provides for a defective Notice of Intention to Foreclose on a Residential Mortgage, that a foreclosure sale shall be void if a lender files a Notice of Intention to Foreclose on a Residential Mortgage without a mediation certificate, and to amend the definition for the residential mortgage.

Florida

H.B. 127
Died in committee 5/7/11
S.B. 738
Died in committee 5/7/11
Subjects interest taken in foreclosure of certain rental property by successor in interest to specified limitations and requirements; requires notice to certain tenants regarding foreclosure; provides exception; provides legislative intent.

H.B. 799
Died in committee 5/7/11
Provides for nonjudicial foreclosure of commercial real property; provides for applicability of provisions; provides for appointment of trustee; provides for trustee initiation of foreclosure of mortgage liens; provides for objections by obligors; provides for redemption of property; provides requirements to be met before encumbered property may be sold by trustee; provides for notice and manner of sale; specifies effect of sale; provides for trustee's certificate of compliance and deed; provides for disposition of sale proceeds.

H.B. 1173
Died in committee 5/7/11
S.B. 1248
Died in committee 5/7/11
Revises provisions relating to delivery of notices for code violations; authorizes immediate issuance of citations for specified code violations; provides municipalities with certain authority relating to foreclosure on abatement assessment liens against real property and assignment of such liens to private parties.

H.B. 1191
Died in committee 5/7/11
Designates act "Florida Fair Foreclosure Act"; provides requirements for publication of notice of foreclosure sale; revises requirements for notice of sale; provides requirements for Internet notices; entitles mortgagors, county clerks, and circuit courts to rely on full or partial release, discharge, consent, joinder, subordination, satisfaction, or assignment of mortgage in certain circumstances; provides for estoppel certificate for mortgagor, upon request.

H.B. 1421
Died in committee 5/7/11
Creates "Foreclosure Debt Claims Act"; provides definitions; authorizes creation and administration of deficiency judgment reimbursement program by Florida Housing Finance Corporation contingent upon occurrence of certain conditions precedent; provides for program's future termination; authorizes continuation of program subject to appropriations made after depletion of funds; provides procedures and eligibility requirements for homeowners & financial institutions to file monetary claims.

S.B. 784
Died in committee 5/7/11
Requires the landlord or mortgagor or its agent to tender to the registry of the court or to the foreclosing entity all funds held for advance rent or security deposits at the time of foreclosure. Directs that such funds continue to be held for the use and benefit of the tenants of the foreclosed property. Provides that a landlord or mortgagor or its agent commits a theft if the landlord or mortgagor or its agent do not comply with certain specified provisions of law.

S.B. 1288
Died in committee 5/7/11
Cites this act as the "Nonjudicial Foreclosure of Commercial Real Property Act." Provides for appointment of a trustee. Provides for trustee initiation of foreclosure of mortgage liens. Provides requirements to be met before encumbered property may be sold by trustee. Provides that provisions concerning the trustee foreclosure procedure do not impair or otherwise affect a foreclosing creditor's right to bring a judicial foreclosure action.

S.B. 1964
Died in committee 5/7/11
Cites this act as the "Florida Fair Foreclosure Act." Provides requirements for publication of a notice of foreclosure sale. Exempts publication of a notice of foreclosure sale on an Internet website from specified provisions relating to publication of legal notices. Entitles mortgagors, county clerks, and circuit courts to rely on a full or partial release, discharge, consent, joinder, subordination, satisfaction, or assignment of a mortgage in certain circumstances. Provides requirements for foreclosure of residential home loans.

S.B. 2006
Died in committee 5/7/11
Creates the "Foreclosure Debt Claims Act." Provides definitions. Authorizes the creation and administration of a deficiency judgment reimbursement program by the Florida Housing Finance Corporation contingent upon the occurrence of certain conditions precedent. Provides for future termination of the program. Authorizes continuation of the program under certain circumstances after depletion of funds. Provides procedures and eligibility requirements for homeowners and financial institutions to file specified monetary claims.

Georgia

H.B. 110
Passed House 3/10/11
Provides for a vacant real property registry; provides for definitions; to provide for required elements of a form for such registration; provides for exemptions from registration; provides for maximum fees and penalties for registration and failure to register; provides for appellate rights.

H.B. 204
Creates the "Protecting Georgia Homeowners Act of 2011"; amends Article 7 of Chapter 14 of Title 44 of the Official Code of Georgia Annotated, relating to foreclosure, so as to provide for legislative findings and intent; provides for homeowner relief from unfair practices related to foreclosure and foreclosure rescue schemes; provides for monetary penalties.

H.B. 209
Amends Code §44-14-162, relating to sales made on foreclosure under power of sale, manner of advertisement, and conduct necessary for validity, so as to provide that the official organ of each county shall list the addresses of property advertised for nonjudicial foreclosure each week in alphabetical or numerical order.

H.B. 338
Amends Title 44 of the Official Code of Georgia Annotated, relating to property, so as to extensively revise and enact provisions relating to the creation, transfer, modification, and foreclosure of mortgages and deeds to secure debt as well as other documents creating security interests; provides a short title; regulates the transfer of security interests; requires recording as condition of foreclosure; provides for a minimum period of delinquency before foreclosure and other proceedings may be commenced; provides that creditors must provide owners of residential property with a right to cure and a notice of such right prior to commencing foreclosure proceedings; provides for notice of initiation of foreclosure proceedings and the contents and manner of delivery of such notice; prohibits deficiency judgments in certain circumstances and authorizes such judgments in certain other circumstances; limits the authority of nominees to initiate foreclosure proceedings or otherwise act for creditors; regulates the creation of reverse mortgages and requires certain disclosures and counseling in connection with such transactions; prohibits fraudulent activities in the process of foreclosure and provides for remedies related thereto; regulates the manner in which mortgages may be modified.

H.B. 419
Amends Part 1 of Article 7 of Chapter 14 of Title 44 of the Official Code of Georgia Annotated, relating to foreclosure in general, so as to provide, under certain circumstances, for an opportunity, prior to foreclosure, for a debtor to cure a foreclosure and bring the debt current by making all past due payments along with any late fees and charges; to provide for a method of payment; to provide for a limitation.

H.B. 445
Amends Title 44 of the Official Code of Georgia Annotated, relating to property, so as to provide for security deposits when residential rental property has been foreclosed upon; changes provisions relating to judgments and writs of possession; provides for a definition; provides for rights and remedies of tenants when their rental property has been foreclosed upon; provides for notices to tenants who reside in property being foreclosed upon; changes provisions relating to sales made on foreclosure under power of sale; prohibits wrongfully inducing a tenant to vacate property being foreclosed upon; provides for specified civil damages.

H.B. 447
Amends Part 4 of Article 7 of Chapter 14 of Title 44 of the Official Code of Georgia Annotated, relating to foreclosures on personalty, so as to enact the "Foreclosure Rescue Fraud Prevention Act"; provides for definitions; provides for foreclosure rescue consultants and firms to be bonded; provides for the application of certain state consumer protection laws to foreclosure rescue transactions; provides that unfair foreclosure rescue transactions are unlawful and void; provides for remedies.

S.B. 123
Amends Title 44 of the Official Code of Georgia Annotated, relating to property, so as to revise provisions relating to foreclosure of security deeds; changes provisions relating to the transfer of security deeds; requires recording prior to foreclosure; provides for owners' rights to obtain payoff balances from creditors; changes provisions relating to the timing, contents, and manner of delivery of foreclosure notices; amends Title 16 of the Official Code of Georgia Annotated, relating to crimes, so as to change provisions relating to the crime of residential mortgage fraud; provides for the crime of residential foreclosure fraud and prescribes elements of the crime and penalties.

S.B. 262
Amends Chapter 60 of Title 36 of the Official Code of Georgia Annotated, relating to general provisions relative to counties and municipal corporations, so as to provide that the owner of real property against which a notice of code violation has been sent who fails to correct such violation within 48 days shall be subject a daily fine; provides for a lien, creation, and foreclosure; amends Title 44 of the Official Code of Georgia Annotated, relating to property, so as to provide for a lien against lots by a home owners' association; provides for the establishment of a postforeclosure registry; provides for the submission of certain information by the purchasers of real property at a foreclosure sale; provides for a presumption that such information is valid for all legal notices; provides for penalties.

Guam
not available
Hawaii

H.B. 115
Authorizes the counties to enact ordinances to safeguard and protect abandoned properties, including properties held in foreclosure.

H.B. 220
Requires the mortgagee in an alternate power of sale foreclosure procedure to attach a copy of the original, signed mortgage agreement and any amendments thereto to the notice of default.

H.B. 321
Requires a mortgagee in possession of a foreclosed property to pay all costs or fees related to the property for which a lien may be placed and to maintain the foreclosed property in a certain condition until transfer to a subsequent purchaser; removes the cap on past-due association fees for a mortgagee that takes possession of a foreclosed condominium.

H.B. 582
Requires a Hawaii agent for mortgage servicers, requires foreclosing mortgagees to engage in mediation, and places a moratorium on non-judicial foreclosures.

H.B. 879
To conference committee 4/15/11
Authorizes a planned community association or a condominium association to pursue nonjudicial foreclosure for outstanding liens; authorizes payment plans for outstanding liens under certain conditions; allows an association to acquire a unit through credit bidding at auction; specifies notice requirements; prohibits foreclosure of certain junior liens during the pendency of foreclosure on a mortgage.

H.B. 894
Passed House 2/10/11
Places a five month moratorium on nonjudicial foreclosures.

H.B. 896
Repeals laws authorizing and providing for nonjudicial foreclosure processes.

H.B. 1119
Requires remainder of proceeds following a foreclosure sale to be paid to the previous mortgagor of the foreclosed property or to the unclaimed property trust fund.

H.B. 1135
Requires foreclosing lenders to notify certain mortgagors about credit counseling no later than 30 days prior to a regular nonjudicial foreclosure. Allows certain mortgagors to forestall regular nonjudicial foreclosure proceedings by requesting copies of the promissory note and mortgage document.

H.B. 1150
Relates to foreclosures (short form bill).

H.B. 1410
Repeals the regular and alternate non-judicial foreclosure processes. Implements a new non-judicial foreclosure process based upon the California deed of trust system.

H.B. 1411
To conference committee 4/15/11
Authorizes the conversion of nonjudicial power of sale foreclosures to judicial foreclosures in certain cases; authorizes recordation of notice of default and intent to foreclose; specifies allowable locations for public auction of foreclosed properties; specifies prohibited conduct; requires suspension of actions by junior lienholders during the pendency of foreclosure; provides that violations of Chapter 667 by foreclosing mortgagees shall be unfair and deceptive trade practices; prohibits deficiency judgments after nonjudicial foreclosure; specifies that the interest of a mortgagor is extinguished upon recordation of affidavit of sale; imposes requirements for mortgage servicers including physical presence within the State; creates dispute resolution process for nonjudicial foreclosures; creates dispute resolution special fund; creates requirements for notice of default; makes conforming amendments; makes appropriation.

H.B. 1484
Prohibits a foreclosing mortgagee from foreclosing under a power of sale if the foreclosing mortgagee represents a trust. Requires filing of endorsements, assignments, and trustee's affidavit. Prohibits filing of documents with electronic signatures.

H.B. 1544
Sets forth guidelines for mortgage foreclosures, and liens for assessments.

H.B. 1600
Provides various protections, remedies, and notice requirements regarding condominium associations and foreclosure of condominium units.

H.B. 1659
Mandates a writ of ejectment in order to preserve the household contents and belongings of tenants whose homes have been foreclosed.

H.C.R. 154
H.R. 135
Urges that the remainder of proceeds following a foreclosure sale be paid to the previous mortgagor of the foreclosed property or to the unclaimed property trust fund.

S.B. 234
Requires a mortgagee in possession of a foreclosed property to pay all costs or fees related to the property for which a lien may be placed and to maintain the foreclosed property in a certain condition until transfer to a subsequent purchaser; removes the cap on past-due association fees for a mortgagee that takes possession of a foreclosed condominium.

S.B. 235
Prohibits deficiency judgment against a mortgagor after a short sale of residential real property pursuant to a foreclosure by action or foreclosure by power of sale.

S.B. 313
Relates to foreclosures.

S.B. 576
Requires mediation for the purpose of attempting to avoid foreclosure before foreclosure by action or by power of sale may take place; makes conforming amendments; creates and funds the position of mortgage mediation administrator in the center for alternative dispute resolution.

S.B. 651
Signed by governor 5/6/11, Act 48
Implements recommendations of the mortgage foreclosure task force by establishing a temporary mortgage foreclosure dispute resolution program; authorizing conversion from nonjudicial to judicial foreclosure; amending sections relating to mortgage servicers; and amending the nonjudicial foreclosure process. Establishes mortgage foreclosure dispute resolution special fund. Makes an appropriation out of the compliance resolution fund.

S.B. 652
To conference committee 4/14/11
Implements recommendations of the Mortgage Foreclosure Task Force relating to service of notice, conversion from nonjudicial to judicial foreclosure, the bar against deficiency judgments, notice of pendency of action, and extinguishment of the mortgagor's interest. Requires 21-day notice of foreclosure. Requires public sale of property after a nonjudicial power of sale foreclosure to be held at the state building in the county seat of the county where the property is located or, for the City and County of Honolulu, at the state building designated by the Department of Accounting and General Services.

S.B. 707
Requires a Hawaii agent for mortgage servicers, requires foreclosing mortgagees to engage in mediation, and places a moratorium on non-judicial foreclosures.

S.B. 1074
Amends the nonjudicial foreclosure process under part I of chapter 667, to among other things require notice of intent to foreclose be served upon required parties, to prohibit a mortgagee of residential property using the nonjudicial foreclosure process from subsequently obtaining a deficiency judgment against owner-occupants, authorize an owner-occupant of residential property to convert the process to a judicial foreclosure proceeding.

S.B. 1175
Repeals authorization for nonjudicial power of sale foreclosure as contained in a mortgage instrument pursuant to §667-5, HRS, and requires a foreclosing mortgagee to utilize either the judicial foreclosure process or the statutory power of sale foreclosure process containing additional consumer protections found in part II of chapter 667, HRS; makes conforming amendments.

S.B. 1191
Prohibits foreclosing mortgagees in nonjudicial foreclosures from pursuing deficiency judgments against the borrowers. Prohibits junior lienholders from pursuing monetary judgments against the borrowers.

S.B. 1350
Imposes a cap and limitations on the amount and type of delinquent association fees that a condominium association may collect from the purchaser of an apartment that is a distressed property after a short sale.

S.B. 1352
Repeals requirement that mortgagors or borrowers sign the conveyance document under an alternate power of sale foreclosure.

S.B. 1454
Authorizes a planned community association or a condominium association to pursue nonjudicial foreclosure for outstanding liens; allows an association to acquire a unit through credit bidding at auction; specifies allocation of excess rental income.

S.C.R. 156
Requests the mortgage foreclosure task force to study the Real Estate Association for Depreciating Housing Assets (RADHA) loan system.

S.R. 94
Requests the mortgage foreclosure task force to study the Real Estate Association for Depreciating Housing Assets (RADHA) loan system.

Idaho

H.B. 331
Signed by governor 4/13/11, Chapter 323
The legislation requires that, along with a notice of default, the lender must provide: a notice of the potential ramifications of foreclosure; a statement that the borrower can contact the lender about potential loan modification programs; and a modification request form which the homeowner may use to request a loan modification. The lender must respond to a request for modification within 45 days and may not proceed to a foreclosure sale until it has responded to the modification request. The legislation provides that when a foreclosure sale has been postponed a written notice of the rescheduled foreclosure sale must be mailed to the borrower at least 14 days before the rescheduled sale is conducted. The legislation also prohibits the collection of loan modification fees unless the person charging the fee is licensed or exempted from licensing by Idaho law.

Illinois

H.B. 63
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.

H.B. 64
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.

H.B. 174
Amends the Code of Civil Procedure. In provisions concerning deeds in lieu of foreclosure, provides that a mortgagee must file an action to confirm the deed in lieu of foreclosure, prove by clear and convincing documentary evidence, other than by oral testimony or affidavit, that the party seeking a judgment to confirm the deed in lieu of foreclosure is the actual, legal mortgagee entitled to bring the action, and obtain a judgment confirming the deed that finds that the mortgagee is entitled to bring the action. In provisions concerning foreclosure by consent and provisions concerning the trial of a foreclosure, provides that a mortgagee must prove by clear and convincing documentary evidence, other than by oral testimony or affidavit, that the party seeking a judgment of foreclosure is the actual, legal mortgagee and is entitled to bring the foreclosure action. In provisions concerning the trial of a foreclosure, provides that where an allegation of fact in the complaint is not denied by a party's verified answer or verified counterclaim or where a party states or is deemed to have stated that it has no knowledge of the allegation sufficient to form a belief and attaches the required affidavit, a sworn verification of the complaint or a separate affidavit setting forth such fact is not sufficient evidence thereof against such party and further evidence of such fact shall be required (rather than that a sworn verification of the complaint or a separate affidavit setting forth such fact is sufficient evidence thereof against such party and further evidence of such fact shall not be required).

H.B. 235
Amends the Property Tax Code. In provisions concerning the assessment of subdivisions, provides that the subsequent sale or transfer of the property by a party who acquired title pursuant to (i) a transfer as a mortgage holder, (ii) a mortgage foreclosure proceeding, (iii) a consent judgment, or (iv) a transfer in lieu of foreclosure, shall not disqualify the property from being assessed based on the estimated price the property would bring at a fair voluntary sale for use by the buyer for the same purposes for which the property was used when last assessed prior to its platting (or, until January 1, 2011, assessed based on the assessed value assigned to the property when last assessed prior to its last transfer or conveyance) unless (A) a habitable structure is completed on the lot, (B) the lot is used for business, commercial, or residential purpose, or (C) until the initial sale of any platted lot.

H.B. 964
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.

H.B. 1109
Amends the Illinois Municipal Code. Provides that a municipality may prescribe ordinances for the maintenance and security of vacant property and impose fines and registration fees for vacant property. Provides that a municipality may hold responsible for failure to maintain or secure a vacant property any owner, previous owner, beneficiary or trustee of a deed of trust that holds the property, mortgagee, or assignee of an owner, beneficiary, trustee, or mortgagee. Provides that a municipality shall have a lien upon the underlying property for removal costs associated with vacant property. Amends the Mortgage Foreclosure Article of the Code of Civil Procedure. In provisions concerning redemption, adds various requirements for determining whether mortgaged real estate has been abandoned.

H.B. 1250
Amends the Illinois Municipal Code. Provides that if foreclosure proceedings for a residential building have been commenced, it is the responsibility of the mortgagee, judgment creditor, or other lien holder to adequately heat the residential building to prevent frozen pipes.

H.B. 1293
To House for concurrence 5/28/11
Amends the Mortgage Foreclosure Article of the Code of Civil Procedure. Provides that special matters in the judgment may include the person who shall be the officer to conduct the sale (rather than an official or other person who shall be the officer to conduct the sale other than the one customarily designated by the court). Provides that unless a person is appointed pursuant to a motion, the person conducting the sale shall be any person previously appointed by any circuit court to conduct a foreclosure sale prior to the effective date of the amendatory Act, any judge, or the sheriff of the county in which the real estate is located (instead of a sale may be conducted by any judge or sheriff). Provides that a copy of the notice of foreclosure of residential real estate shall be sent to the municipality or county in which the property is located by first class mail (instead of sent pursuant to the Code of Civil Procedure). Provides that the mortgagee, judgment creditor, or other lien holder shall furnish the confirmation order to the last-known insurer of a residential building in writing by first-class mail. Provides that the failure to send or receive a copy of the order does not affect the rights of the mortgagee or purchaser or affect the foreclosure proceedings. Further amends the Mortgage Foreclosure Article of the Code of Civil Procedure. Adds to the identified public officials who shall be sent a copy of a notice of foreclosure and a confirmation order, in the case of Chicago, the city clerk and the alderman for the ward in which the property is located.

H.B. 1454
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.

H.B. 1455
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.

H.B. 1574
Signed by governor 8/26/11, Public Act 97-0575
Amends the Code of Civil Procedure. Provides that in foreclosure proceedings involving mortgaged property with five or more dwelling units, the court shall order that the mortgagor transfer to the purchaser any security deposit paid by a current occupant of a dwelling unit of the mortgaged property. Amends the Security Deposit Return Act. Provides that when a lessor transfers a security deposit received from a lessee including interest to a purchaser of a foreclosed property, the purchaser is liable to the lessee for the security deposit, including interest. Provides that within 21 days after receipt of the security deposits and the names and addresses of lessees who paid a deposit, the purchaser shall, at each dwelling unit for which the purchaser has a security deposit, post a notice that informs the occupant of the receipt of the occupant's security deposit. Makes other changes.

H.B. 1809
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.

H.B. 1810
Amends the Code of Civil Procedure. Provides that a $500 mortgage foreclosure prevention fee shall be collected from the proceeds resulting from a sale of real estate in a foreclosure action and shall be deposited into the Mortgage Foreclosure Prevention Fund. Provides that amounts in the Fund may be expended only for the purpose of funding specified eligible foreclosure mitigation activities, which includes mortgage foreclosure housing counseling, mortgage foreclosure legal services, community-based outreach, and administration of comprehensive court-sponsored foreclosure mediation programs. Sets forth the eligible entities and how the funds shall be allocated to the counties. Amends the State Finance Act to include the Fund as a special fund.

H.B. 1960
Signed by governor 8/12/11, Public Act 97-0329
Amends the Code of Civil Procedure. Provides that in any residential foreclosure action, the deadline for filing a motion to dismiss or to quash service that objects to the court's jurisdiction over the person, unless extended by the court for good cause shown, is 60 days after the earlier of these events: (i) the date that the moving party filed an appearance; or (ii) the date that the moving party participated in a hearing without filing an appearance. Provides that in any residential foreclosure action, if the objecting party files a responsive pleading or a motion prior to the filing of a motion objecting to personal jurisdiction, that party waives all objections to the court's jurisdiction over the party's person.

H.B. 3057
Amends the Condominium Property Act. Provides that the requirement that the purchaser of a condominium unit or a unit of a common interest community at a judicial foreclosure sale, other than a mortgagee, who takes possession of the unit pursuant to a court order or a purchaser who acquires title from a mortgagee has a duty to pay the unit's common expenses, unpaid by the owner, which would have become due in the absence of any assessment acceleration during the 6 months immediately preceding institution of an action to collect the owner's unpaid assessments, has, as an additional component, the following: the purchaser shall have the duty to pay the proportionate share, if any, of the common expenses for the unit which would have become due in the absence of any assessment acceleration during the period beginning six months after institution of an action to enforce the collection of assessments and ending when the purchaser takes possession of a condominium unit pursuant to the court order or acquires title from the mortgagee.

H.B. 3062
Amends the Landlord and Tenant Act. Provides that a landlord shall make a good faith effort to timely disclose by written notice given to each residential or commercial tenant following, or in anticipation of, a significant change concerning the property at which the leased premises is located by stating that the property: is the subject of a foreclosure action, the control of the property has changed or will change, and that the tenant may terminate, without penalty, the lease upon 90 days' written notice; is for sale or has been sold; or that the premises are or will be under different management. Provides that, if the property where the leased premises is located is in foreclosure, a tenant may terminate, without penalty, the lease upon 90 days' written notice to the landlord. Provides that a landlord shall make a good faith effort to disclose in a timely manner to each prospective residential or commercial tenant who is considering leasing premises that the property at which the premises is located: is the subject of a foreclosure action; is for sale or has been sold; or will be under different management.

H.B. 3077
Amends the Condominium Property Act. Provides that to the extent that the governing documents of a common interest community or a master association provide for lien rights and the applicability of forcible entry provisions of the Code of Civil Procedure, the purchaser of a unit in a common interest community or master association at a judicial foreclosure sale, other than a mortgagee, who takes possession of a unit pursuant to a court order or a purchaser who acquires title from a mortgagee has the duty to pay the proportionate share, if any, of the common expenses for the unit which would have become due in the absence of any assessment acceleration during the six months immediately preceding the commencement of an action to collect the unpaid assessments. Provides that if the outstanding assessments are paid at any time during a collection action, the purchaser shall have no obligation to pay any assessments which accrued before he or she acquired title. Provides that this does not create a statutory lien in favor of the common interest community or master association.

H.B. 3183
Amends the Code of Civil Procedure. Creates the Homeowner Bill of Rights in the Article known as the Illinois Mortgage Foreclosure Law. Provides that a mortgagee shall have access to all communications between the mortgagor and the mortgagee and between the mortgagee and any third party concerning the mortgagor, the mortgagee, and the mortgage note. Defines terms. Provides that the mortgagor may utilize a HUD-certified counselor to act as an intermediary or agent in interactions with the mortgagee.

H.B. 3199
Amends the Property Tax Code. In the Real Estate Transfer Tax Law, provides that (i) deeds or trust documents that release property that is security for a debt or other obligation and (ii) deeds issued to a holder of a mortgage pursuant to a mortgage foreclosure proceeding or pursuant to a transfer in lieu of foreclosure are subject to the tax beginning on the effective date of this amendatory Act of the 97th General Assembly and through June 30, 2016. Provides that deeds issued to a holder of a mortgage pursuant to a mortgage foreclosure proceeding or pursuant to a transfer in lieu of foreclosure shall remain exempt for the period prior to July 1, 2016 if the holder (i) originated the mortgage in question, (ii) did not originate more than 10,000 mortgage loans in 2007, and (iii) had less than $5,000,000,000 in assets as of the effective date of the amendatory Act. Provides that, of the moneys received from the real estate transfer tax imposed upon those deeds, 50 percent shall be deposited into the Abandoned Residential Property Municipality Relief Fund, 35 percent shall be deposited into the Open Space Lands Acquisition and Development Fund, and 15 percent shall be deposited into the Natural Areas Acquisition Fund.

H.B. 3335
To House for concurrence 5/17/11
Amends the Code of Civil Procedure. Provides that the mortgagee, judgment creditor, or other lien holder shall furnish the confirmation order to the last-known insurer of a residential building in writing by first-class mail after the mortgagee, judgment creditor, or lien holder becomes the mortgagee-in-possession. Provides that the failure to send or receive a copy of the order does not affect the rights of the mortgagee or purchaser or affect the foreclosure proceedings. Further amends Code of Civil Procedure. Adds to the designated entities who shall be sent a copy of a notice of foreclosure and a confirmation order, in the case of a municipality with a population of more than 2,000,000, the alderman for the ward in which the property is located.

H.R. 10
Adopted 4/12/11
Urges Congress to institute a foreclosure moratorium.

H.R. 45
Adopted 4/12/11
Urges Congress to help prevent residential foreclosures.

S.B. 16
Passed Senate 4/8/11
Amends the Illinois Housing Development Act to authorize the Illinois Housing Authority to establish and administer a foreclosure prevention counseling program using moneys in the Foreclosure Prevention Counseling Fund, appropriated for that purpose, to make grants to HUD-certified housing counseling agencies to support pre-purchase and post-purchase home ownership education and foreclosure prevention counseling. Amends the State Finance Act to create the Foreclosure Prevention Counseling Fund. Provides that 75 percent of the moneys in this Fund shall be used for housing counseling outside Chicago and 25 percent of the moneys shall be used for such counseling in Chicago.

S.B. 61
Amends the Mortgage Rescue Fraud Act. Changes definition of "distressed property consultant" by narrowing the attorney exception to the definition, so that an attorney is only considered to be excluded from the definition of "distressed property consultant" if the attorney is licensed in Illinois and is providing distressed property consultant services as an ancillary matter to the attorney's representation of an owner of distressed property as a client.

S.B. 69
Amends provisions prohibiting a mortgagee from obtaining a personal judgment against the mortgagor for a deficiency in a foreclosure of residential real estate by limiting the prohibition to residential real estate that is the mortgagor's primary residence.

S.B. 111
Amends the Code of Civil Procedure. Provides that in addition to giving notice of a judicial sale pursuant to applicable court rules to all parties in the action who have appeared and have not previously been found by the court to be in default, the notice shall also be sent to the mortgagor, even if the mortgagor was found in default, and to the mortgagor's attorney, if any, at their designated addresses or, if none, at the foreclosed property.

S.B. 129
Amends the Criminal Code of 1961. Creates the offense of perpetrating a fraudulent foreclosure. Provides that a person commits the offense when he or she has a security interest in real property and files a foreclosure action under the Illinois Mortgage Foreclosure Law to terminate the mortgagor's rights and interests in the real property when the circumstances that gave rise to the action are not in violation of the terms of the mortgage agreement, or if the circumstances are in breach of the mortgage agreement, the terms of the mortgage agreement do not permit foreclosure at the time of the filing of the action. Provides that a violation is a Class X felony for which the court shall impose a minimum fine of $500,000.

S.B. 142
Creates the Foreclosure Prevention and Housing Task Force Act. Creates the Foreclosure Prevention and Housing Task Force to help move all communities in this state towards a direction of economic recovery and rebuilding. Contains provisions concerning the composition of the Task Force; Task Force duties; and reporting requirements.

S.B. 1102
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.

S.B. 1259
Sent to governor 11/23/11
Amends the Code of Civil Procedure. Defines "short sale" as the sale of real estate that is subject to a mortgage for an amount that is less than the amount owed to the mortgagee on the outstanding mortgage loan. Provides that in a foreclosure of residential property, if the mortgagor presents to the mortgagee, which is a banking organization or corporation, a bona fide written offer from a third party to purchase the property in foreclosure which is for an amount that constitutes a short sale, and the mortgagor requests that the mortgagee approve the short sale, then the mortgagee must respond within 90 days and must agree to the short sale unless there is a reasonable justification to not do so.

S.B. 1300
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.

S.B. 1301
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.

S.B. 1302
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.

S.B. 1303
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.

S.B. 1304
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.

S.B. 1355
Passed Senate 3/31/11
Amends the Code of Civil Procedure. Provides that a copy of the notice of foreclosure of residential real estate shall be sent to the municipality or county in which the property is located by first class mail (instead of sent pursuant to the Code of Civil Procedure). Provides that the mortgagee, judgment creditor, or other lien holder shall furnish the confirmation order to the last-known insurer of a residential building in writing by first-class mail after the mortgagee, judgment creditor, or lien holder becomes the mortgagee-in-possession. Provides that the failure to send or receive a copy of the order does not affect the rights of the mortgagee or purchaser or affect the foreclosure proceedings. Makes other changes.

S.B. 1370
Amends the Illinois Housing Development Act. Creates the Neighborhood Stabilization Program. Provides that the Illinois Housing Development Authority shall establish and administer the Program and use moneys in the Neighborhood Stabilization Program Fund, and any other funds appropriated for this purpose, to make grants to non-profit organizations that serve communities with high rates of residential foreclosures. Provides that the Authority shall promulgate rules, including emergency rules. Provides that subject to appropriation, the Authority shall make grants from the Neighborhood Stabilization Program Fund to approved non-profit organizations that serve communities with high rates of residential foreclosures. Defines terms. Amends the Code of Civil Procedure. Provides that for uninhabited residential real estate in foreclosure, from the time of the filing of a foreclosure complaint until the plaintiff no longer has any interest in the property, the plaintiff shall pay to the circuit clerk a fee of $1000 per month for each month that the residential real estate is not inhabited until the property is sold to a bona fide buyer who will either inhabit the premises or lease the property to a tenant for inhabitation within 90 days after the closing. Provides that fees collected shall be deposited into the Neighborhood Stabilization Fund, a special fund created in the State treasury. The clerk shall remit the fees to the State Treasurer as follows: 98 percent to the State Treasurer for deposit into the Neighborhood Stabilization Fund Program Fund; and two percent to the circuit clerk for administrative expenses related to this program. Provides that annually, the circuit clerk shall submit to the Authority a report of the funds collected and remitted. Amends the State Finance Act. Creates the Neighborhood Stabilization Fund.

S.B. 1778
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.

S.B. 1785
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.

S.B. 1972
Signed by governor 8/23/11, Public Act 97-0535
Amends the Condominium Property Act. Provides, in provisions concerning master associations, that a purchaser of a unit at a judicial foreclosure sale, other than a mortgagee who takes possession pursuant to a court order or a purchaser who acquires title from a mortgagee, has the duty to pay the proportionate share of the common expenses for the unit during the six months immediately before the filing of an action to collect assessments and the court costs incurred by the association in an action to enforce the collection (instead of the association's costs of collection including reasonable attorney's fees) that remain unpaid by the prior owner. Provides that if the outstanding assessments and the court costs incurred by the association in an action to enforce the collection (instead of the association's costs of collection including reasonable attorney's fees) are paid during an action to collect assessments, the purchaser shall have no obligation to pay any assessments or costs that accrued before he or she acquired title.

S.B. 2002
Passed Senate 4/14/11
Amends the Code of Civil Procedure. Exempts a municipality with more than one million inhabitants from the requirement that a copy of the notice of foreclosure must be sent to the municipality in which the foreclosed property is located.

S.B. 2033
Passed Senate 5/3/11
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.

S.B. 2080
Amends the Code of Civil Procedure. Provides that a foreclosure complaint shall include a copy of all documents that demonstrate the capacity (instead of 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). Provides that at a foreclosure trial, an allegation of fact that is not denied (instead of not denied or if the party has no knowledge to form a belief as to the truth of the allegation) must be proved by a verified complaint or separate affidavit. Provides that a foreclosure judgment shall include: tangible evidence of the indebtedness, who holds the indebtedness 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.

S.J.R. 30
Adopted 5/31/11
Creates the Foreclosure Working Group, appointed by the State Housing Task Force, to create recommendations to address the foreclosure and housing crisis in the state.

Indiana

H.B. 1024
Signed by governor 5/9/11, Public Law 116
Removes a requirement that the insurance producer's contact information be included in written notice concerning a change in a residential policy. Exempts coverage for certain motor vehicles used for business purposes in connection with a commercial policy from the law requiring an insurer to make available uninsured and underinsured motorist coverage. Requires an insurer to provide a written notice of residential policy cancellation in a foreclosure action under certain circumstances. Requires the creditor in a residential property foreclosure action to send a copy of the complaint to the insurance company of record.

H.B. 1066
Requires a person who purchases property at a foreclosure sale to record the deed within 60 days. With respect to mortgaged real property that the mortgagor surrenders in writing to the court or to a mortgagee, provides that 30 days after the date on which the mortgagor surrenders real property the mortgagee is responsible for ensuring that the property does not violate local ordinances or nuisance, unsafe building, and vacant and abandoned structures statutes. Specifies that the mortgagee is personally liable for ensuring that the property complies with local ordinances or nuisance, unsafe building, and vacant and abandoned structures statutes, and provides that the mortgagee may be liable for additional civil penalties as determined by the appropriate local legislative body. Requires a mortgagee to whom property has been surrendered to record the mortgagee's interest in the property not later than 60 days after receipt. Provides that a mortgagee has the authority to enter onto real property in order to carry out its responsibilities.

H.B. 1181
Amends the definition of "mortgage" in the statute concerning foreclosure prevention agreements for residential mortgages to: (1) specify that the term does not include a land contract; (2) specify that the term includes a first lien on residential real estate upon which a dwelling is constructed or intended to be constructed; and (3) more closely correspond to the definition of the term used in the statute concerning first lien mortgage lending. Provides that in a residential foreclosure action filed after June 30, 2011, the creditor shall include with the complaint filed with the court the most recent contact information for the debtor that the creditor has available, including: (1) all telephone numbers and electronic mail addresses; and (2) any mailing address other than the address of the mortgaged property; that the creditor has on file for the debtor.

H.B. 1182
Signed by governor 5/9/11, Public Law 121
Establishes the Consumer Protection Assistance Fund; provides that money in the fund may be used to make payments to qualifying individuals who are awarded restitution by a court in connection with a violation of statutes relating to telephone solicitation, credit services organizations, mortgage rescue fraud, and home loans, and to and assist the Office of the Attorney General with investigation, prosecution, or enforcement of the case.

S.B. 466
Permits a tax sale certificate purchaser to enter onto abandoned property for which the purchaser owns a tax sale certificate to abate a nuisance or comply with unsafe building laws or certain ordinances. Requires a person who purchases property at a foreclosure sale to record the deed within 60 days. With respect to mortgaged real property that the mortgagor surrenders in writing to the court or to a mortgagee, provides that 30 days after the date on which the mortgagor surrenders real property the mortgagee is responsible for ensuring that the property does not violate local ordinances or nuisance, unsafe building, and vacant and abandoned structures statutes. Specifies that the mortgagee is personally liable for ensuring that the property complies with local ordinances or nuisance, unsafe building, and vacant and abandoned structures statutes, and provides that the mortgagee may be liable for additional civil penalties as determined by the appropriate local legislative body. Requires a mortgagee to whom property has been surrendered to record the mortgagee's interest in the property not later than 60 days after receipt. Provides that a mortgagee has the authority to enter onto real property in order to carry out its responsibilities.

S.B. 517
Reduces the tax sale redemption period for vacant and abandoned residential property to six months, and reduces the redemption period for vacant and abandoned nonresidential property to one month. Provides immunity from civil liability to a person who gratuitously: (1) secures; (2) removes trash or debris from; or (3) mows, landscapes, or maintains; vacant or abandoned property. Establishes the interim study committee on mortgage foreclosure issues to study issues relating to: (1) reducing delays in mortgage foreclosures; and (2) mortgage foreclosures of vacant or abandoned property.

S.B. 582
Signed by governor 5/10/11, Public Law 170
Amends the definition of "mortgage" in the statute concerning foreclosure prevention agreements for residential mortgages to: (1) specify that the term does not include a land contract; (2) specify that the term includes a first lien on residential real estate upon which a dwelling is constructed or intended to be constructed; and (3) more closely correspond to the definition of the term used in the statute concerning first lien mortgage lending. Provides that in a residential foreclosure action filed after June 30, 2011, the creditor shall include with the complaint filed with the court the most recent contact information for the debtor that the creditor has available or on file, including: (1) all telephone numbers and electronic mail addresses used by the debtor; and (2) any mailing address for the debtor other than the address of the mortgaged property. Provides that in a residential foreclosure action, any: (1) court costs associated with a settlement conference; or (2) attorney's fees incurred by a creditor in connection with a settlement conference; may not be charged to or collected from the debtor. Provides that in a residential foreclosure action filed after June 30, 2011: (1) a settlement conference between the debtor and creditor must be scheduled by the court upon the creditor's filing of the complaint; and (2) the action may not proceed until the settlement conference has taken place, subject to the debtor's right to opt out of the settlement conference. Provides that in a residential foreclosure action that: (1) is filed before July 1, 2011, and with respect to which the debtor has requested a settlement conference and the court has not issued a judgment; or (2) is filed after June 30, 2011; the court shall issue a stay in the proceedings until the settlement conference is concluded or, for an action filed after June 30, 2011, until the court receives notice of the debtor's election to opt out of the settlement conference. Provides that in such cases, the court shall treat the debtor's participation in a settlement conference under this chapter as an appearance by the debtor in the foreclosure action, notwithstanding the court's stay. Requires the court to deny a creditor's motion for a default judgment that is based on the debtor's failure to appear in the action if the motion is filed: (1) before a settlement conference is held, unless the debtor opts out of the conference or fails to participate in a scheduled conference; or (2) after the debtor participates in a settlement conference. Provides that during the pendency of a residential foreclosure action filed after June 30, 2011, if the debtor continues to occupy the mortgaged dwelling, the court may issue an order requiring the debtor to continue to make monthly payments with respect to the mortgage on which the action is based. Provides that the court shall determine the amount of the payment, which: (1) may be based on debtor's ability to pay; and (2) may not exceed the debtor's monthly obligation under the mortgage. Provides that any payments made: (1) shall be held in trust for the parties by the clerk of the court or in an attorney trust account; and (2) may be disbursed only upon order of the court. Provides that any payments held shall be credited: (1) to the debtor if the parties subsequently enter into a foreclosure prevention agreement; or (2) against the amount of the judgment entered or the amount owed if a judgment of foreclosure is subsequently entered. In a residential foreclosure action, provides that a court may impose sanctions, including a civil penalty, on any party for a violation of: (1) the statute concerning foreclosure prevention agreements for residential mortgages; or (2) a court order or rule relating to an action subject to the statute. Provides that any civil penalties collected shall be deposited in the home ownership education account to support programs conducted by specified entities to facilitate settlement conferences in residential foreclosure actions. Makes conforming changes.

Iowa

H.S.B. 8
This bill relates to the foreclosure of a real estate mortgage. This bill allows a successful bidder at a sheriff’s sale who is not affiliated with the judgment creditor to elect to receive, in lieu of a sheriff’s deed or sheriff’s certificate of sale, an assignment of all of the judgment creditor’s interest in the judgment, the underlying indebtedness, and any policies of title, property, and any other similar insurance or guaranty owned by the judgment creditor relating to the affected property. Except for a sale that is subject to redemption, an assignment under the bill bars junior interests in the property as if an assignment had not been elected. If the sale is subject to redemption, the period to redeem begins on the date of the sale resulting in the assignment.

S.F. 494
Passed Senate 3/15/11
S.S.B. 1041
Became S.F. 494 3/8/11
The bill allows a successful bidder at a sheriff’s sale who is not affiliated with the judgment creditor to elect to receive, with the written consent of the mortgagor, in lieu of a sheriff’s deed or sheriff’s certificate of sale, an assignment of all of the judgment creditor’s in rem interest in the judgment, the underlying indebtedness net of any deficiency judgment, and any policies of title, property, and any other similar insurance or guaranty owned by the judgment creditor relating to the affected property.

Kansas
none
Kentucky

H.B. 82
Creates a new section of KRS Chapter 82, relating to cities, to require a creditor to register vacant residential property with the local government in which the property is located; create penalty for failure to comply.

H.B. 128
Passed House 2/15/11
Amends KRS 382.110 to require mortgage holders to file deeds in lieu of foreclosure within 10 days of executing the deed; amends KRS 382.990 to provide that a mortgage holder failing to record a deed within 10 days is guilty of a violation.

H.B. 155
Amends KRS 142.050 to clarify that a voluntary surrender under a mortgage in lieu of a foreclosure proceeding is not subject to the real estate transfer tax.

H.B. 304
Amends KRS 413.140 and 413.090 to reduce the statute of limitations for filing an action for a deficiency judgment after a foreclosure sale of real estate from 15 years to one year from the date of sale; amends KRS 426.520 to require the plaintiff in a foreclosure action to serve notice to the defendant of a deficiency within one year of the initial filing of the foreclosure if the property sells for two-thirds of the appraisal.

H.B. 354
Amends KRS 413.140 and 413.090 to reduce the statute of limitations for filing an action for a deficiency judgment after a foreclosure sale of real estate from 15 years to one year from the date of sale; amends KRS 426.520 to require the plaintiff in a foreclosure action to serve notice to the defendant of a deficiency within one year of the initial filing of the foreclosure if the property sells for two-thirds of the appraisal.

Louisiana

H.B. 262
Signed by governor 6/20/11, Act 90
Provides that a certified reproduction of a security agreement shall be deemed as authentic evidence in an action for executory process.

H.B. 410
Limits the tax liability of seizing creditors and keepers of property.

S.B. 269
Signed by governor 7/6/11, Act 408
Authorizes the Louisiana Housing Corporation to establish a program to provide free mortgage foreclosure counseling and education to homeowners who have defaulted or are in danger of defaulting on the mortgages on their homes.

Maine

L.D. 145
This bill requires a mortgagee bringing a civil foreclosure action on real property to produce the original mortgage note, signed by the mortgagor, as part of the complaint.

L.D. 1360
Signed by governor 6/9/11, Public Chapter 269
This bill allows a mortgagor to recover court costs and attorney's fees if the mortgagor prevails in a foreclosure action.

Maryland

H.B. 366
Signed by governor 4/12/11, Chapter 37
S.B. 205
Signed by governor 4/12/11, Chapter 36
Requires that an affidavit regarding the accuracy of the contents of a specified intent to foreclose be included in an order to docket or a complaint to foreclose on a mortgage or deed of trust on residential property; and applies the Act prospectively.

H.B. 412
Signed by governor 5/19/11, Chapter 478
S.B. 450
Signed by governor 5/19/11, Chapter 477
Prohibits a court, in an action to foreclose a mortgage or deed of trust on residential property, from accepting a lost note affidavit in lieu of a copy of the debt instrument unless the affidavit contains specified information; and applies the Act prospectively.

H.B. 509
Signed by governor 4/12/11, Chapter 127
Clarifies the authority of the commissioner of Financial Regulation to enforce the provisions of the Protection of Homeowners in Foreclosure Act (PHIFA) and the Maryland Mortgage Fraud Protection Act (MMFPA) by exercising specified investigative and enforcement powers of the commissioner; authorizes the commissioner to seek a specified injunction; authorizes the commissioner to require a violator of PHIFA and MMFPA to take affirmative actions, including restitution, to correct the violation.

H.B. 631
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 regular monthly assessments, or regular monthly assessments and charges, under a lien imposed for assessments, or assessments and charges 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.

H.B. 691
S.B. 206
Passed Senate 3/25/11
Defines the term "secured party" for purposes of provisions of law governing actions to foreclose mortgages and deeds of trust on residential property.

H.B. 728
Signed by governor 5/10/11, Chapter 355
Requires a notice of intent to foreclose for an owner-occupied residential property to be accompanied by an envelope addressed to a specified person; alters the documents that must accompany an order to docket or complaint to foreclose on residential property; clarifies the documents that must be served on a mortgagor or grantor in a residential foreclosure action.

H.B. 842
Signed by governor 5/10/11, Chapter 246
S.B. 516
Signed by governor 5/10/11, Chapter 245
Prohibits a foreclosure sale purchaser from exercising any right to collect rent payments from a bona fide tenant in possession of a residential property unless the purchaser conducts a specified reasonable inquiry concerning the occupancy of the residential property and serves on each bona fide tenant a specified notice concerning rent payments.

H.B. 1177
Authorizes the secured party to petition a circuit court for leave to immediately commence an action to foreclose a mortgage or deed of trust that is the subject of the mortgage or deed of trust when the property has been destroyed, is abandoned or vacant, is not intended and has never been used for human habitation, or is intended for human habitation but has never been occupied, and a use and occupancy permit, if required, has never been issued.

H.B. 1246
Signed by governor 5/10/11, Chapter 387
S.B. 946
Provides that, in the case of a foreclosure on a mortgage or deed of trust on or for a condominium unit, the portion of a lien on the condominium unit that represents up to six months of specified unpaid assessments, including specified fees and costs, has priority over a first mortgage or deed of trust under specified circumstances; provides that lot owners in a homeowners association are liable for specified assessments and charges.

H.B. 1337
Requires a bank or investment company that owns residential property that has been foreclosed on and repossessed by the bank or investment company to secure and maintain the property according to specified standards; authorizes a local government to enact a local law that requires the bank or investment company to register, secure, and maintain the property located within the boundaries of the local government and subjects the bank or investment company to a civil penalty for failing to secure and maintain the property.

S.B. 503
Requires a sheriff or county official directed to evict a tenant to give notice to the purchaser and the tenant of the scheduled date of execution of the warrant of restitution; establishing that the tenant has the right to reclaim any personal property left in the premises within three full days after the eviction; specifies how the purchaser may secure the tenant's personal property; requires the purchaser to allow the tenant to make reasonable arrangements to obtain and move the personal property.

S.B. 918
Requires, in the case of a foreclosure sale, a deed to be recorded within 60 days after the date of the final order of ratification.

Massachusetts

H.B. 363
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.

H.B. 503
Requires all foreclosures of residential mortgages on one to four family owner-occupied properties to be initiated by the filing of a foreclosure complaint against the mortgagor in the superior court for the county in which the property is located. A defendant-residential mortgagor may raise all legal and equitable claims and defenses. The court shall have the authority to modify the mortgage or grant any other appropriate relief as to the mortgagor but nothing in this section shall affect the rights of tenants or other legal occupants residing in the property that is the subject of the complaint. The court may set aside a default judgment for good cause shown.

H.B. 1183
Provides mortgage consolidation and relief; gives the Massachusetts Home Mortgage Finance Agency further powers to provide non-delinquent homeowner relief, including but not limited to low or moderate income homeowners, so that the Commonwealth will be able to provide its citizens with a means to once again afford their homes and avoid foreclosure.

H.B. 1193
Issues an immediate moratorium on foreclosures of any mortgages that are, or ever were, registered at MERS (Mortgage Electronic Registry Service).

H.B. 1219
Relates to preventing unlawful and unnecessary foreclosures.

H.B. 1355
Establishes mandatory foreclosure mediation with judicial review.

H.B. 1454
Facilitates mediation of mortgage foreclosures of owner occupied residential real property in the city of Boston.

H.B. 2131
Creates a Historic District Stabilization Committee that shall be authorized, by this legislation, commencing upon the effective date of the passage of this bill, to acquire by eminent domain any real estate or real estate related property interest including mortgages, tax obligation, assignments of mortgages, or any other interest relating to any real estate mortgage in default within the community in consideration of fair market value as determined by certified Massachusetts Real Estate Appraisers, and shall be authorized to pay for these interests with proceeds of eventual sales of the said property interests.

H.B. 2246
Creates a special commission (including members of the General Court) to study the viability of a foreclosure mediation program and the establishment and implementation of said program.

H.B. 2766
Updates the law relative to discharge of certain mortgages.

H.B. 2854
Relates to judicial foreclosures, focuses on unemployed homeowners.

H.B. 3282
Provides, notwithstanding any general or special law, or rule, or regulation to the contrary, any foreclosure of real property located within the commonwealth shall be initiated by the process of filing a civil foreclosure complaint; provided, however, that said complaint shall be filed in the superior or housing court of the county in which the real property is located. Such action, after any and all notices required by state or federal law have been provided to the mortgagor by the mortgagee, shall be commenced with a pleading for breach of contract in accordance with the rules of civil procedure. A residential mortgagor may raise any and all available defenses to the foreclosure and to the contract for the underlying mortgage loan, in law and in equity. The court shall have the authority to modify the mortgage or grant any other appropriate relief, including attorney’s fees, costs and disbursements to the prevailing party in such judicial proceeding. Mortgagors shall have a right of redemption for six months after the entry of judgment.

S.B. 463
Relates to right to cure and foreclosures.

S.B. 673
Establishes mandatory foreclosure mediation with judicial review.

S.B. 676
Requires that all foreclosures of residential mortgages on one to four family owner-occupied property located in the commonwealth can only be initiated by the filing of a foreclosure complaint in the Superior or Housing Court for the county in which the property is located. A residential mortgagor may raise any and all available defenses to the foreclosure and to the contract for the underlying mortgage loan, in law and in equity. The court shall have the authority to modify the mortgage or grant any other appropriate relief.

S.B. 684
Enables judicial clarification of ownership in evictions.

S.B. 767
Allows for the mortgagor to rent the home after a foreclosure.

S.B. 771
Assures the integrity of the mortgage foreclosure process through affidavits.

S.B. 809
Provides that all foreclosures of residential mortgages on one to four family owner-occupied properties shall be initiated by the filing of a foreclosure complaint against the mortgagor in the superior court for the county in which the property is located. Such filing shall include notice pursuant to 50 U.S.C. App. §501 et seq., the Service Members Civil Relief Act (“SCRA”) as it exists or may be amended, and no additional filing in the Land Court, pursuant to SCRA shall be required. A defendant-residential mortgagor may raise all legal and equitable claims and defenses. The court shall have the authority to modify the mortgage or grant any other appropriate relief as to the mortgagor but nothing in this section shall affect the rights of tenants or other legal occupants residing in the property that is the subject of the complaint. The court may set aside a default judgment for good cause shown.

S.B. 830
Clears titles to foreclosed properties.

S.B. 844
Notwithstanding any general or special law to the contrary, residential mortgage lenders and landlords shall offer provisions to allow a mortgagee or lessee to defer payments and extend a mortgage term or lease term for a period proportional to the length of deferment. This provision shall apply to a residential mortgagee or lessee who has an active application for long-term disability assistance. The residential mortgage lender or landlord may require proof of hardship. This provision shall apply only to a primary residence.

S.B. 865
Establishes a foreclosure mediation program.

S.B. 868
Prevents unlawful and unnecessary foreclosures.

Michigan

H.B. 4118
Requires meeting between lender and borrower before foreclosure by advertisement in regard to foreclosures of Michigan State Housing Development Authority mortgages.

H.B. 4222
Requires 30-day notice of foreclosure of property to tenants.

H.B. 4404
Makes one-year moratorium on residential mortgage and land contract foreclosures applicable to MSHDA mortgages and land contracts.

H.B. 4405
Provides for a one-year moratorium on residential mortgage and land contract foreclosures.

H.B. 4417
Eliminates the sunset for the mortgage modification negotiation program.

H.B. 4536
Extends sunset on the mortgage loan modification negotiation program.

H.B. 4542
Signed by governor 12/21/11, Public Act 301
Amends Chapter 32 (Foreclosure of Mortgages by Advertisement) of the Revised Judicature Act to change the process for modifying the mortgage on a principal residence, and extend the modification program through 2012. The mortgage modification program would not apply to a mortgage of property used for agricultural purposes if it were subject to borrowers' rights under the Federal Farm Credit Act, the Consolidated Farm and Rural Development Act, and regulations promulgated under those Acts, the mortgage were subject to the restructuring of distressed loans under the Federal Acts, and other criteria were met.

H.B. 4543
Signed by governor 12/21/11, Public Act 302
Amends Chapter 32 (Foreclosure of Mortgages by Advertisement) of the Revised Judicature Act to change the process for modifying the mortgage on a principal residence, and extend the modification program through 2012.

H.B. 4544
Signed by governor 12/21/11, Public Act 303
Deletes the three-acre limit on residential property subject to a six-month redemption period if the amount due exceeds two-thirds of the original indebtedness. Prescribes a one-year redemption period for property used for agricultural purposes. Establishes a rebuttable presumption that property was used for agricultural purposes if certain criteria were met.

H.B. 4651
Requires judicial foreclosure for certain residential mortgages.

H.B. 5020
Amends Section 3204 of the Revised Judicature Act to specify that if the party foreclosing a mortgage by advertisement is not the original mortgagee, a chain of title containing each assignment of the mortgage, including the most recent assignment, would need to be recorded with the register of deeds before proceedings to foreclose the mortgage are commenced. The bill also amends Section 3212 of the act so that every notice of foreclosure by advertisement would have to include (a) the names of the mortgagor, the original mortgage, and each assignee, including the foreclosing assignee if the mortgage has been assigned; (b) the date of the mortgage, the date the mortgage was recorded, the date of each assignment, and the date each assignment was recorded; (c) the amount claimed to be due on the mortgage on the date of the notice; (d) a description of the mortgaged premises; and (e) the length of the redemption period. The underlined bolded language is the new language to be added by the bill.

H.B. 5021
Amends Section 3240 of the Revised Judicature Act that establishes the redemption periods for property sold at a foreclosure sale under Chapter 32. The bill amends the section to require the affidavit to be delivered to the register of deeds not later 15 days before the expiration of the redemption period.

H.B. 5022
Allows county registers of deeds to calculate amount due to redeem property in foreclosure.

H.B. 5176
Revises redemption periods for mortgages foreclosed by advertisement.

S.B. 398
Signed by governor 7/1/11, Act 72
Amends Chapter 32 (Foreclosure of Mortgages by Advertisement) of the Revised Judicature Act to delay for six months, until January 5, 2012, the sunset on sections that provide for the modification of residential mortgage loans.

S.B. 513
Requires judicial foreclosure for certain residential mortgages.

S.B. 573
Prohibits power to foreclose mortgages by advertisement if mortgage holder does not participate in help for hardest hit program.

S.B. 690
Requires lender to modify mortgage if borrower meets certain qualifications.

S.B. 705
Prohibits deficiency judgments.

Minnesota

H.F. 395
S.F. 137
Signed by governor 5/24/11, Chapter 66
Relates to real property; clarifies deeds to correct title and certain acknowledgments; providing for cancellation of residential purchase agreements; clarifies redemption period for foreclosure of certain mortgages.

H.F. 492
S.F. 600
Relates to taxation; property; provides property valuation freeze and an exclusion for improvements made to purchased foreclosed properties.

H.F. 1180
Relates to mortgage foreclosures; provides a uniform process for use by lenders in responding to mortgage loan modification requests by homeowners; requires mortgage lenders to record proof of compliance prior to foreclosure.

H.F. 1443
Indefinitely postponed 5/13/11
S.F. 1162
Signed by governor 5/24/11, Chapter 58
Relates to real property; landlord and tenant; clarifies application of foreclosure provisions for residential tenants.

H.F. 1515
S.F. 1272
Relates to real property; landlord and tenant; modifies certain late fee provisions; clarifies certain provisions related to eviction from property subject to foreclosure.

H.F. 1637
S.F. 666
Relates to real property; requires transaction agents to disclose information on lenders for residential mortgage loans; requires additional data in foreclosure notices.

Mississippi

H.B. 322
Died in committee 2/1/11
Establishes procedures for the foreclosure of mortgages by advertisement under which a borrower must be given an opportunity to meet with a lender regarding modification of a mortgage loan on a principal residence before foreclosure proceedings may be begun; prohibits a party from beginning foreclosure proceedings by advertisement if the prescribed procedures have not been followed or the applicable time limits have not expired, or if the parties have agreed to modify the loan and the borrower is not in default; requires a foreclosing party, before proceeding with a foreclosure sale by advertisement, to mail to the borrower a written notice containing specified information, including the name of a designated contact person who will have the authority to make modification agreements and a list of approved housing counselors; allows the borrower to bring an action to enjoin the foreclosure if the required notice was not served; requires the borrower to contact a housing counselor if he or she wishes to work out a modification, and requires the counselor to schedule a meeting with the designated contact person; provides that foreclosure proceedings may not be begun until 90 days after the notice was sent, if the borrower requests a meeting; requires the borrower, the designated person, or the housing counselor to calculate a modified payment if the meeting does not result in an agreement; requires the Mississippi Home Corporation to prepare a list of approved housing counselors.

H.B. 418
Died in committee 2/1/11
Creates the Mississippi Foreclosure Rescue Business Act; expresses legislative findings and intent; defines certain terms; prohibits certain acts; requires written agreements regarding foreclosure-related rescue services; requires written agreements regarding foreclosure-related transactions; provides a rebuttable presumption regarding foreclosure-related transactions; provides penalties for violations of this act.

H.B. 425
Died in committee 2/1/11
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; to provide that the corporation shall enter into agreements with mortgagors who receive assistance under the act for the repayment of that assistance; requires all mortgagors who receive assistance under the act to receive consumer credit counseling; creates the homeowner's emergency mortgage assistance fund in the state treasury.

H.B. 737
Died in committee 2/1/11
Amends §11-5-99 and §13-3-169 to reduce the time period during which sales of real estate by court order and sales under execution may be held.

S.B. 2251
Died in committee 2/1/11
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.

S.B. 2665
Died in committee 2/1/11
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

H.B. 292
Prohibits real estate appraisers from using the foreclosure price of a foreclosed property as a comparable property when developing an appraisal.

H.B. 485
This bill changes the notice requirement to a tenant in a foreclosure action from 10 business days to 90 days.

H.B. 721
This bill requires a lending institution purchasing property at a foreclosure sale and selling the property within one year for an amount that exceeds the purchase price to apply the excess amount to any deficiencies or judgments. Any amount exceeding the deficiencies will remain the property of the lending institution.

H.B. 922
This bill requires each office of the circuit court in every county to establish a loss mitigation application and a residential mortgage foreclosure mediation negotiation program to assist mortgagors and mortgagees in achieving a mutually agreeable resolution to a mortgage foreclosure action. The Missouri Supreme Court must develop model guidelines for the implementation of the program. In its main provisions, the bill: (1) Requires a residential mortgagor of a one- to four-family owner-occupied property to be served with a loss mitigation application and a preforeclosure notice or other official communication at the earliest opportunity, but not less than 90 days prior to the start of foreclosure proceedings, to inform the mortgagor of eligibility for foreclosure alternatives. The application cannot be a substitute for other efforts to contact the mortgagor. (2) Requires the mortgagor to be informed of his or her right to meet with a United States Department of Housing and Urban Development (HUD)-approved counseling agency prior to the entry of a judgment in a foreclosure action and of the process required to schedule the negotiation. The mortgagor and/or servicer must notify the mortgagee's legal representative when a negotiation conference has been scheduled. (3) Requires the court to assign mediators who are trained in mediation and all relevant aspects of the law, have knowledge of mortgage assistance programs and available community-based resources, and are trained in using the relevant Federal Deposit Insurance Corporation forms and worksheets. The court may establish a training program and require a mediator to receive the training prior to being appointed. (4) Requires each party and each party's attorney, if any, and/or a representative of a HUD-approved counseling agency to be present at the negotiation conference and make a good faith effort to mediate all issues within the 90-day period. The mortgagor may waive his or her right to representation if it is in writing and agreed upon by both parties prior to the scheduled negotiation conference. (5) Requires the negotiation conference to address all issues of the loss mitigation application and the lender's response including specified options to help resolve the foreclosure action or to restructure the mortgage debt. All parties must reach a mutual agreement within 90 days. (6) Specifies that if a mortgagor fails to appear for a required scheduled negotiation conference, the state can authorize the mortgagee to proceed with the foreclosure action. (7) Specifies that if the mortgagee or his or her legal representative fails to appear for a required scheduled negotiation conference, the case cannot proceed until a rescheduled negotiation conference is held; and (8) Requires the mortgagee, after entry of a final judgment in favor of the mortgagee, to provide a copy of the foreclosure judgment to any resident of the premises 90 days prior to eviction.

H.B. 1018
This bill changes the laws regarding mortgage foreclosures by requiring a preforeclosure notice which is a written notice by the mortgagee to the mortgagor to contain: (1) The mortgagor's right to cure the default; (2) An itemization of all past due amounts causing the default; (3) An itemization of any other charges that must be paid to satisfy the full obligations of the loan; and (4) Contact information for persons having authority to modify the loan to avoid foreclosure and for approved counseling agencies to assist mortgagors. A preforeclosure notice must be served at the earliest opportunity but at least 60 days prior to a foreclosure and must inform the mortgagor of any residential mortgage foreclosure mediation negotiation process that may apply. A notice cannot be substituted for other efforts to contact the mortgagor but to assist with reviewing the mortgagor's eligibility for a foreclosure alternative. Considering negotiations between the 50 attorney generals and the possibility of federal action, the provisions of the bill will expire December 31, 2015.

S.B. 52
This act requires county assessors to consider foreclosures, bank sales, and the average time homes remain on the market when establishing the value of parcels of real property for property tax purposes.

Montana

H.B. 333
Vetoed by governor 5/10/11
Requires the Department of Revenue to include sales of residential property that has been sold because of nonpayment of mortgage when using the comparable sales method of determining market value of residential property; establishes requirements for including the sales in the comparable sales method.

S.B. 295
Became law without governor’s signature 5/12/11, Chapter 399
Revises the manner of appraising certain properties for property tax purposes; provides that the consideration paid on a mortgage foreclosure must be disclosed in a realty transfer certificate; requires the use of the uniform standards of professional appraisal practice; requires that erroneous calculation errors must be corrected for all affected properties.

Nebraska
none
Nevada

A.B. 259
Signed by governor 6/17/11, Act 525
Reduces the fee for the account for foreclosure mediation collected at the time of recording a notice of default and election to sell.

A.B. 273
Signed by governor 6/10/11, Chapter 311
Revises provisions governing the amount which a person holding a junior lien on real property may recover in a civil action under certain circumstances; prohibits certain persons holding a junior lien on certain residential property from bringing a civil action under certain circumstances; revises provisions governing the amount of a deficiency judgment after the foreclosure of a mortgage or a deed of trust.

A.B. 300
Vetoed by governor 6/16/11
Revises the procedures concerning foreclosure mediations. Requires a mediator to complete and submit a statement that includes the findings of the mediator; authorizes the homeowner to petition the court for an order imposing sanctions against the lender; and creates a rebuttable presumption that the court will impose sanctions against the lender under certain circumstances which include, without limitation, the failure of the lender to attend the mediation. Authorizes either party to the mediation to petition for judicial review if the party is dissatisfied with the findings or recommendations of the mediator. This bill requires, under certain circumstances, a foreclosure to take place within 90 days after the specific date by which the homeowner is required to vacate the property pursuant to an agreement reached by the parties to such a mediation. This bill sets forth certain requirements governing an agreement reached by the parties to such a mediation that authorizes a “short sale” of the property. This bill prohibits a lender from assessing any fee to a homeowner for participating in such a mediation or any subsequent court action. Establishes additional duties of the mediation administrator, including, without limitation, collecting and compiling statistics on the participation of lenders in such mediations.

A.B. 308
Signed by governor 6/10/11, Chapter 278
This bill revises provisions governing certain mortgage lending professionals to be consistent with certain federal law governing the provision of mortgage assistance relief services; provides a penalty.

A.B. 373
Signed by governor 5/29/11, Chapter 144
This bill provides that a person in possession of real property who, under certain circumstances, willfully removes, damages or destroys any real property that is subject to foreclosure or any other action affecting the title or possession of the real property is guilty of a category E felony.

A.B. 388
Signed by governor 6/10/11, Chapter 306
Under existing law, the trustee under a deed of trust concerning owner-occupied housing has the power to sell the property to which the deed of trust applies, subject to certain restrictions. One such restriction: (1) requires the trustee under the deed of trust to include a form to request mediation with the notice of default and election to sell which is mailed to the grantor of the deed of trust or the person who holds the title of record; and (2) authorizes the grantor of the deed of trust or the person who holds the title of record to request mediation under rules adopted by the Supreme Court. This bill requires the notice of default and election to sell which is mailed to the grantor or the person who holds the title of record to include a notice provided by the entity designated to administer the Foreclosure Mediation Program which states that the grantor or the person who holds the title of record has a right to seek foreclosure mediation in the Foreclosure Mediation Program. Under existing law, another restriction on the exercise of the trustee’s power of sale prohibits the trustee from exercising the power of sale unless, not later than 60 days before the date of the sale, the trustee causes a notice to be served on the grantor or the person who holds the title of record which contains the telephone numbers of certain agencies which may provide assistance to the grantor or the person who holds the title of record. This bill amends this notice to include: (1) a statement that the person receiving the notice may have a right to participate in the State of Nevada Foreclosure Mediation Program if the time to request mediation has not expired; (2) the telephone number of the State of Nevada Foreclosure Mediation Program; and (3) the telephone number of the Division of Mortgage Lending of the Department of Business and Industry.

A.B. 394
Under existing law, the association has a lien for certain amounts due the association. This lien is prior to the lien of a first security interest on the unit to the extent of charges incurred by the association to maintain certain units which are being foreclosed and to the extent of a specified number of months of assessments. (NRS 116.3116) This bill provides that if the title to the unit is acquired at a foreclosure sale or trustee’s sale and the mortgage on the unit was insured by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association, the amount secured by the lien given priority must not exceed the amount of common expenses and assessments authorized to be given such priority by the federal regulations or underwriting guidelines of the federal entity which insured the debt.

A.B. 455
Existing law concerning the foreclosures of real property upon default requires the trustee under a deed of trust with respect to owner-occupied housing who has the power to sell the property to which the deed of trust applies to attend mediation, if requested by the grantor of a deed of trust or the person who holds the title of record, for the purpose of obtaining a modification in the terms of the loan. The Nevada Supreme Court is authorized to adopt rules providing for the conduct of the mediation. (NRS 107.086) This bill requires the court to include in its rules authority for a mediator who determines that the beneficiary of the deed of trust or the representative in attendance at a mediation is acting in bad faith to order that the mediation be continued, establish a new date and time for its resumption and require the beneficiary to pay the full amount of any additional mediation costs incurred as a result of the continuance.

A.B. 581
Signed by governor 6/17/11, Chapter 511
Existing law creates the Account for Foreclosure Mediation for the purpose of supporting a program of foreclosure mediation established by Supreme Court Rule. This bill authorizes money in the Account to be used for any purpose authorized by the Legislature. This bill authorizes the transfer of certain funds from the Account to the operating budget for the Supreme Court for the 2011-2013 biennium.

S.B. 307
Signed by governor 6/13/11, Chapter 357
This bill establishes additional restrictions on the trustee’s power of sale with respect to owner-occupied housing which are based on Maryland law and which require an analysis of the eligibility of the grantor or person who holds the title of record for a loan modification or other loss mitigation alternative. Under this bill, the trustee must include with the notice of default and election to sell mailed to the grantor or the person who holds title of record an application for a loan modification program or other loss mitigation alternative. If the application is returned to the trustee: (1) the trustee must forward it to the person responsible for analyzing the eligibility of the grantor or the person who holds title of record for a loan modification or other loss mitigation alternative and that must complete an analysis of the application; and (2) the mediation administrator may not issue to the trustee the certificate which must be recorded before the exercise of the power of sale unless the trustee serves on the mediation administrator an affidavit certifying that an analysis of the application was completed. This bill also provides the procedures to be followed if a loss mitigation application is not returned within 30 days after service of the notice of default and election to sell and the procedures to be followed with respect to loss mitigation applications if mediation is required under existing law. Finally, this bill requires the mediation administrator to create standard forms for the required affidavits.

S.B. 314
Signed by governor 6/16/11, Chapter 456
Existing law provides for the licensure or registration and regulation of various professions in this State. This bill provides for the registration, permitting and regulation of asset management companies and asset managers by the Real Estate Division of the Department of Business and Industry. Asset management companies provide asset management services for real property which is in foreclosure and which is owned by a bank, mortgage broker, mortgage banker, credit union, thrift company or savings and loan association, or any subsidiary thereof, a mortgage holding entity chartered by Congress or a federal, state or local governmental entity. Such companies and persons manage the property, performing services such as securing the property by changing locks, removing trash and debris, cleaning the home and surrounding property, performing maintenance and repairs of homes and disposing of the personal property of homeowners left in homes which are in foreclosure and which the legal owner has deemed abandoned.

S.B. 346
This bill revises the prohibition against an award of a deficiency judgment by prohibiting a court from awarding a deficiency judgment after a foreclosure sale or trustee’s sale of any real property which is a single-family dwelling: (1) owned by the debtor or grantor of the deed of trust; and (2) occupied by the debtor or grantor continuously as his or her principal residence. Moreover, this bill prohibits such a deficiency judgment regardless of the date on which the obligation secured by the mortgage, deed of trust or other encumbrance on real property was created, unless a deficiency judgment with respect to that obligation is awarded before the effective date of this bill.

S.B. 402
To Assembly for concurrence 6/6/11
Revises provisions relating to covenants that may be adopted by reference in a deed of trust; provides methods by which assumption fees for a change of parties in a deed of trust may be set; requires a foreclosure sale of commercial property to be held in a location specified in certain recorded documents; limits the amount of certain secured interests in foreclosure sales and deficiency judgments; revises provisions relating to accounting for impound accounts for the payment of certain obligations relating to certain real property; provides a civil penalty.

S.B. 414
Signed by governor 6/13/11, Chapter 361
Prohibits a banking or other financial institution from unreasonably delaying a response to an offer for a short sale on real property secured by a residential mortgage loan; prohibits a banking or other financial institution from obtaining a deficiency judgment in certain circumstances; provides a penalty.

New Hampshire

S.B. 109
Passed Senate 2/23/11
This bill establishes a committee to study the foreclosure process in New Hampshire.

S.B. 111
Signed by governor 6/7/11, Chapter 145
This bill exempts short sales from certain requirements pertaining to foreclosure consultants.

New Jersey

A.B. 359
Signed by governor 12/20/11, Chapter 146
S.B. 1651
Substituted 6/29/11
This bill, the "Foreclosure Rescue Fraud Prevention Act," requires foreclosure consultants and distressed property purchasers, who contract with owners of residential properties in financial distress, to adhere to certain practices in providing foreclosure prevention services to owners. The bill requires a foreclosure consultant to post a bond with the Division of Consumer Affairs prior to conducting any business in the state. In addition, the bill provides certain contract rights for owners of a financially distressed residential property, as defined in the bill, who contract with foreclosure consultants, including requirements that: (1) the contract for foreclosure consulting services must be in writing and must contain certain disclosures and notice requirements in 14-point boldface type; and (2) the owner has a right to cancel the foreclosure consulting contract at any time until after the foreclosure consultant has fully performed every service the consultant contracted to perform. The bill also prohibits certain practices by foreclosure consultants, including: (1) collecting any fee prior to the completion of all agreed upon services, unless compensation for partial performance is expressly agreed upon in the contract; and (2) collecting fees in excess of certain limits as described in the bill. In situations in which there is a distressed property conditional conveyance, whereby an owner transfers the distressed property to a distressed property purchaser, occupies the property, and retains an option to purchase the property back from the purchaser, or a distressed property conveyance, whereby an owner simply transfers the distressed property to a distressed property purchaser, the bill provides certain contract rights to owners, including requirements that: (1) the contract be in writing and include certain notices and disclosures in 14-point boldface type; and (2) the owner has a right to cancel the contract during certain periods as described in the bill. As to distressed property conditional conveyances, the bill places certain obligations on distressed property purchasers, including requirements to: (1) verify that the owner has a reasonable ability to pay for a subsequent conveyance of title back to the owner; (2) ensure that the owner is paid at least 82 percent of the property’s fair market value in consideration for the owner’s conveyance of title, or transfer of a beneficial interest through a trust, to the distressed property purchaser; and (3) provide to the owner, prior to a distressed property conditional conveyance, a disclosure statement that includes all costs the owner will incur in connection with the conveyance and any option for the owner to purchase the property back from the purchaser. As to distressed property conveyances, the bill places certain obligations on distressed property purchasers, including a requirement that the owner is paid at 82 percent of the property’s fair market value in consideration of the owner’s transfer of title to the distressed property purchaser. For a violation of the bill’s provisions, the bill provides for a civil penalty of not more than $10,000 for the first offense, and not more than $20,000 for the second and each subsequent offense, which penalty may be collected in a summary proceeding pursuant to the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.). The bill provides that any person who violates any provision of the bill is guilty of a crime of the third degree. A person who violates any provision of the bill in connection with a pattern of foreclosure rescue fraud or a conspiracy or endeavor to engage in a pattern of foreclosure rescue fraud is guilty of a crime of the second degree. The bill also provides that any distressed property conditional conveyance or distressed property conveyance involving the transfer of an interest in fee or a beneficial interest through a trust document, which is made in violation of any provision of the bill, is voidable and the transfer may be rescinded by the owner within two years of the date of the transfer and outlines certain restrictions and rights of owners of such properties. In addition, the bill provides that an owner or a municipal tax lien holder of interest in a distressed property on behalf of an owner, may bring an action in Superior Court against a foreclosure consultant or a distressed property purchaser for any violation of the bill’s provisions, for treble damages, attorney’s fees, costs of suit and appropriate equitable relief. If an owner or municipal tax lien holder commences such an action, the party may: (1) cause a notice of lis pendens to be filed in the office of the county clerk in the county in which the property is located, pursuant to N.J.S.2A:15-6 et seq.; and (2) introduce or provide as evidence in the action, any contemporaneous oral agreements or representations made to the owner by any party to a foreclosure consultant contract or distressed property conveyance contract signed by the owner. Finally, the bill provides that the director of the Division of Consumer Affairs, within the Department of Law and Public Safety, in consultation with the commissioner of Banking and Insurance, shall enforce the provisions of the bill, and may promulgate regulations necessary to effectuate the purposes of the bill.

A.B. 3537
Signed by governor 1/17/12, Chapter 222
S.B. 2444
This bill requires that an owner who takes title to a residential property through either a sheriff’s sale or a deed in lieu of foreclosure must provide the municipality where the property is located with the owner’s contact information within three business days. If the owner does not reside in New Jersey, then the owner shall designate a representative who is authorized to accept service of process on behalf of the owner and provide the representative’s contact information to the municipality.

New Mexico

H.B. 171
Prohibits deficiency judgments in certain mortgage foreclosures.

H.B. 174
Passed House 2/28/11
Enacts the Foreclosure Fairness Act; allows recovery of attorney fees for the prevailing defendant in a foreclosure action.

S.B. 200
Clarifies that the home loan protection act does not affect foreclosure processes pursuant to the deed of trust act.

S.B. 406
Passed Senate 3/4/11
Enacts the Mortgage Fair Foreclosure Act; provides penalties.

New York

A.B. 373
Signed by governor 7/29/11, Chapter 257
S.B. 663
Substituted by A.B. 373 6/20/11
S.B. 5759
Provides for the creation and administration of land banks, for the conversion of vacant, abandoned or tax-delinquent properties into productive use.

A.B. 629
Passed Assembly 6/22/11
S.B. 697
Provides that only the owner and holder of a mortgage and note, or its agent, shall have standing to commence a mortgage foreclosure action; lack of standing shall be defense that may be raised at any time; requires the plaintiff in a foreclosure action to affirm that it is the holder and owner, or its designed agent, of the subject mortgage and note; the summons and complaint shall include a copy of the original mortgage and note, and all endorsements, assignments and transfers thereof, and any delegations of authority by the owner and holder of the mortgage and note.

A.B. 1310
S.B. 3162
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. 1597
Enacts the "Foreclosure Diversion Act of 2011"; provides for a one-year moratorium on foreclosures; requires a homeowner to attend a counseling session; requires courts to meet with parties at a mandatory settlement conference.

A.B. 2444
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. 3538
Enacts the "Foreclosure Prevention Act of 2011"; 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. 3661
S.B. 3589
Grants tenants relocation costs from the proceeds of a foreclosure sale.

A.B. 3996
S.B. 3588
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. 4236
Increases the bond limit of the state of New York mortgage agency for the purpose of refinancing subprime loans at risk of foreclosure.

A.B. 4717
Requires banks to defer mortgage payments of customers who are delinquent.

A.B. 4880
Enacting clause stricken 3/9/11
S.B. 1649
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. 5856
Enacting clause stricken 4/20/11
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. 6744
S.B. 3149
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.

A.B. 6745
S.B. 3148
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.

A.B. 6896
S.B. 1649
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. 7264
S.B. 5636
Establishes certain proof and settlement requirements for plaintiffs seeking summary judgment or a default judgment in a residential foreclosure proceeding; provides that only the owner and holder of a mortgage and note, or its agent, shall have standing to commence a mortgage foreclosure action; lack of standing shall be defense that may be raised at any time; requires the plaintiff in a foreclosure action to affirm that it is the holder and owner, or its delegated agent, of the subject mortgage and note; the summons and complaint shall include a copy of the original mortgage and note, and all endorsements, assignments and transfers thereof, and any delegations of authority by the owner and holder of the mortgage and note.

A.B. 7277
Provides for mediation in foreclosure actions for fundamentally unaffordable mortgage loans, provides for a tax credit for banks that renegotiate loans; directs the banking board to promulgate rules and regulations further defining mediation requirements.

A.B. 7338
Relates to procedures at mandatory settlement conferences in residential foreclosure actions and requires good faith settlement discussions in connection with such foreclosure actions.

S.B. 442
Relates to presumption of dismissal of residential mortgage foreclosure actions for repeated plaintiff non-appearance or failure to meet readiness deadlines.

S.B. 1520
Expands the definition of "tenant" for purposes of notice upon the commencement of an action to foreclose upon the leased residential real property.

S.B. 1674
Establishes the Rural Homeowners Assistance Program for assisting first time, low or moderate income, or minority homeowners from foreclosure by authorizing and directing the commissioner of state division of housing and community renewal to enter into contracts with neighborhood preservation companies to provide such assistance to residents in certain rural communities; appropriates $1,000,000 for such purposes.

North Carolina

H.B. 164
Signed by governor 6/23/11, Chapter 204
Requires that the notice of sale and the notice filed by an upset bidder in a foreclosure proceeding include an explanation of the effect of a bankruptcy petition that is filed during the 10-day upset bid period.

H.B. 484
Signed by governor 6/24/11, Chapter 288
Transfers management of the state home foreclosure prevention project and fund to the North Carolina Housing Finance Agency, exempts the North Carolina Housing Finance Agency from the requirements of Articles 6 and 7 of chapter 143 of the general statutes, and authorizes the commissioner of Banks to acquire property subject to approval of the state banking commission.

H.B. 654
Passed House 6/3/11
Amends the Homeowner and Homebuyer Protection Act; amends provisions regarding a foreclosure rescue transaction.

S.B. 679
Signed by governor 6/27/11, Chapter 312
Modernizes and enacts certain provisions regarding deeds of trust, including releases, short sales, future advance provision terminations and satisfactions, terminations and satisfactions for equity line liens, release of ancillary documents, eliminating trustee of deed of trust as necessary party for certain transactions and litigation, and indexing of subsequent instruments related thereto.

North Dakota
none
Ohio

H.B. 56
Amends §§323.47, 2303.20, 2323.07, 2329.01, 2329.02, 2329.09, 2329.191, 2329.20, 2329.26, 2329.31, 2329.33, 2329.36, 2329.52, 2909.05, 2941.47, and 5723.01 and to enact sections 2308.01 to 2308.09 of the Revised Code to permit the trial of a corporation in absentia in a criminal proceeding initiated by complaint and relative to residential foreclosure actions.

H.B. 181
Amends §5321.04 and 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 to specify that a rental agreement for a residential property that is sold pursuant to a foreclosure action converts to a month-to-month rental agreement.

S.B. 43
Amends §§169.02, 1349.20, 4735.18, and 4735.24 of the Revised Code to require earnest money for the purchase of residential real estate to be deposited in an interest-bearing account to be used to fund foreclosure prevention programs.

S.B. 109
Amends §2911.21 and enacts §2305.117 of the Revised Code to provide that a person is not criminally or civilly liable for trespassing on certain abandoned land, blighted parcels, or similar places of public amusement if the person enters or remains on the land or parcel to beautify it.

S.B. 234
Amends §2329.26 of the Revised Code to authorize county sheriffs to advertise foreclosure sales via a web site.

Oklahoma

H.B. 1689
Passed House 2/21/11
Relates to property; allows mortgagee of abandoned property to make written request to sheriff; requires sheriff to inspect abandoned property; permits mortgagee to take possession of property in certain circumstances; exempts mortgagee's liability for dispossession of mortgagor or tenant; requires written notice to mortgagor.

S.B. 522
Provides that the filing date of a Statement of Judgment filed as a result of a mortgage foreclosure judgment pursuant to §686 of this title shall determine the priority among lien holders. A postjudgment deficiency order relating to the foreclosure shall not require the filing of a Statement of Judgment and has no effect on the priority status of lien holders.

S.B. 798
Signed by governor 5/26/11, Chapter 380
Relates to mortgaged property; authorizes remedy for abandoned or vacated property pending foreclosure proceedings; provides procedure for motion, notice, hearing and determination of abandonment or occupancy; prohibits denial of certain order without certain appearance at hearing; requires demonstration of proof to court's satisfaction; requires sheriff to inspect and post certain notice within certain time.

Oregon

H.B. 2002
Requires an owner of a foreclosed residential real property to provide contact information to the neighborhood association or local government official designated to receive contact information. Permits the local government to issue a citation and impose a fine on the person that fails to comply with requirement to provide contact information.

H.B. 2219
Requires beneficiary under trust deed to offer grantor under trust deed opportunity to remain in possession of residential unit during period in which trustee's sale for residential unit is pending if sale does not occur on date scheduled for trustee's sale or if trustee postpones trustee's sale. Requires grantor to pay rent to beneficiary at market rate for residential unit and agree to vacate residential unit not later than 10 days after receiving notice that residential unit has sold. Provides that agreement to permit grantor to remain in possession does not create tenancy or require beneficiary to assume duties of landlord. Provides that grantor must maintain residential unit in habitable condition and pay for utilities and services supplied to residential unit.

H.B. 2472
Requires trustee or beneficiary named in trust deed to respond in writing to grantor not later than 30 calendar days after receiving communication from grantor that is related to grantor's mortgage loan. Prescribes standards for response. Makes violation of requirement to respond to communication, requirement to provide loan modification request form and process request for loan modification and certain other violations unlawful practice subject to enforcement under Unlawful Trade Practices Act. Removes sunset from laws that require response to loan modification request.

H.B. 2571
Adds assigns and successors in interest to persons authorized to redeem real property in foreclosure.

H.B. 2916
Signed by governor 6/23/11, Chapter 480
Prohibits lender or assignee of lender from bringing action or otherwise seeking payment for residual debt following short sale if lender reports to Internal Revenue Service that, for specified reasons, lender has canceled all or portion of borrower's debt under real estate loan agreement and if lender provides to borrower written evidence of report.

H.B. 2957
Prohibits owner of foreclosed residential real property from neglecting real property during periods of vacancy. Permits local government to assess civil penalty for each day during which owner fails to remedy conditions of neglect. Sunsets January 2, 2014.

H.B. 3265
Prohibits financial institution from using broker price opinion to value real property or interest in real property in certain circumstances. Classifies use of broker price opinion as unlawful practice.

H.B. 3639
Prohibits owner of foreclosed residential real property from neglecting real property during periods of vacancy. Permits local government to assess civil penalty for each day during which owner fails to remedy conditions of neglect.

S.B. 198
Requires mandatory mediation between trustee and grantor before sale to foreclose residential trust deed. Requires certain notices and procedures for conducting mediation. Requires trustee to provide grantor with documentation as part of notice of sale that identifies beneficial owner of loan. Prohibits owner of foreclosed residential real property from neglecting real property during periods of vacancy. Permits local government to assess civil penalty for each day during which owner fails to remedy conditions of neglect.

S.B. 293
Signed by governor 5/16/11, Chapter 42
Modifies provisions regulating negotiation of rental agreements and disclosure of rent and fees. Modifies provisions related to retaliatory actions of landlord. Modifies provisions authorizing tenant to use security deposit or prepaid rent to pay rent when tenant receives notice of foreclosure of property that is subject of tenant's rental agreement.

S.B. 484
Requires notice of sale in trust deed foreclosure to include documentation that establishes beneficiary or beneficiary's agent as real party in interest with respect to loan to be foreclosed. Requires documentation to consist of true copy of original debt instrument and evidence of chain of title from date of original loan to date of notice of sale.

S.B. 491
Signed by governor 6/23/11, Chapter 510
Modifies requirements for notice of foreclosure and termination of tenancy for residential dwellings in foreclosure.

S.B. 492
Removes certain exemptions from requirement to comply with law governing mortgage loan modifications. Extends sunset date for mortgage loan modification law. Requires trustee to be resident of this state or have registered agent that meets certain qualifications.

S.B. 519
Signed by governor 8/2/11, Chapter 712
Provides, in sale or judgment of foreclosure proceeding, that if trustee sells property upon which single residential unit that is subject to affordable housing covenant is situated, eligible covenant holder may purchase property from trustee for lesser of total sum of obligations secured by trust deed or mortgage on property or highest bid received for property other than bid from eligible covenant holder.

S.B. 827
Passed Senate 5/25/11
Provides that failure to include required modification form with notice of sale, failure to comply with provisions governing loan modifications and failure to record required affidavit of compliance with loan modification requirements are unlawful practices subject to enforcement under unlawful trade practices law. Prescribes time within which beneficiary or beneficiary's agent must file affidavit for recording. Requires trustee to send copy of required affidavit to Department of Justice. Requires Department of Consumer and Business Services by rule to prescribe form of affidavit and specifies minimum requirements for affidavit. Removes certain exemptions from requirement to comply with law governing mortgage loan modifications. Permits grantor to record affidavit stating that grantor requested loan modification in accordance with law and by applicable deadline. Requires trustee to be resident of this state or have registered agent that meets certain qualifications.

S.B. 932
Directs state public officials in depositing public funds to give preference to depositories state treasurer determines make significant number of loans to small businesses in this state, maintain certain ATM and overdraft fees, calculate overdraft fees in manner beneficial to customers and engage in fair foreclosure practices.

Pennsylvania

H.B. 1846
Amends the act of April 6, 1951 (P.L.69, No.20), known as The Landlord and Tenant Act of 1951, provides for notice of foreclosure.

H.R. 194
Urges the Supreme Court of Pennsylvania to revise the Rules of Civil Procedure to provide for tempor OK Server: Apache-Coyote/1.1 expires: Thu, 01 Jan 1970 00:0r>

H.R. 238
Directs the Legislative Budget and Finance Committee to examine the causal factors of home foreclosure in this Commonwealth and make recommendations on best practices for mitigating foreclosure.

Puerto Rico

H.B. 3310
Passed House 5/23/11
Creates the Protecting the Family Home Program for the purpose of providing reasonable alternatives to families whose primary residence is at risk of foreclosure; provides that such program shall be administered by the Authority for the Housing Finance of Puerto Rico and establishes managerial authority

H.B. 3386
Signed by governor 10/31/11, Chapter 215
Amends Law 101 of May 12, 1943, as amended, to establish rules for canceled stamps for the Legal Aid Society with respect to the writings of foreclosure.

H.B. 3700
Establishes control over housing that is repossessed with the purpose of pattern requirements on supply control, custody and sale of foreclosed homes in Puerto Rico.

S.B. 2114
Relates to the law to prevent foreclosures; requires the mortgagor to present arrears on your mortgage; establishes certain requirements prior to beginning the foreclosure process.

S.R. 1656
Adopted 3/29/11
Directs the Committee on Banking, Consumer Affairs and Public Corporations of the Senate to conduct an investigation into cases for recovery of money, personal loans, or other obligations, including those sought by foreclosures levied on residential real estate and other measures filed or settled in the courts by the banks, companies or financial institutions, cooperatives and other entities as assignees or administrators of the above.

Rhode Island

H.B. 5048
This act permits cities and towns to freeze tax rates and valuations on property purchased at foreclosure and renovated within the existing size and footprint.

H.B. 5252
This act 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 also 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. This act requires a successor in interest to a foreclosed mortgagor to give tenants written notice to quit at least 60 days in advance.

H.B. 5253
This act 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 establish a monthly “periodic tenancy,” subject to the provisions of the "residential landlord and tenant act," for bona fide tenants of a mortgagor.

H.B. 5532
This act prohibits foreclosures by newspaper advertisement by those who are not the actual owners of the promissory notes secured by the mortgage deeds.

H.B. 5673
This act provides that owners of property be provided with notice of an intent to foreclose. It would further require that assignments or transfers of mortgages be recorded in the land evidence records of the city or town in which the property is located.

H.B. 5902
This act 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.

H.B. 5903
This act requires judicial foreclosure rather than foreclosure pursuant to the statutory power of sale with respect to a mortgaged estate having the Mortgage Electronic Registration Systems (“MERS”) appearing in its chain of title.

H.B. 5942
This act requires any mortgagee who is commencing foreclosure proceedings on owner-occupied residential property, to advise the mortgagor of the availability of counseling through HUD-approved mortgage counseling agencies. Failure upon the part of the mortgagee to provide said notice to the mortgagor of this requirement would render the foreclosure void. Counseling between the parties under this section would be mandatory, and at no cost to the mortgagee. Furthermore, the mortgagee must include in the foreclosure deed an affidavit of compliance with the provisions of this act.

H.B. 6016
This act provides a tenant of a foreclosed property greater protection against eviction.

S.B. 243
This act requires judicial foreclosure rather than foreclosure pursuant to the statutory power of sale with respect to a mortgaged estate having the Mortgage Electronic Registration Systems (MERS) appearing in its chain of title.

S.B. 313
This act 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 also 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. This act requires a successor in interest to a foreclosed mortgagor to give tenants written notice to quit at least 60 days in advance.

S.B. 328
This act allows for the 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 requires that the purchaser of property sold at a foreclosure sale give notice within seven days to every household residing in that dwelling unit.

S.B. 332
This act 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 if the municipality determines that the property is in violation of state and local housing codes if and when the property becomes vacant during the foreclosure proceeding.

S.B. 344
This act requires any successor in interest to a foreclosed mortgagor to meet certain notification requirements prior to evicting a tenant legally occupying a foreclosed property.

S.B. 673
This act allows for the 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 requires that the purchaser of property sold at a foreclosure sale give notice within seven days to every household residing in that dwelling unit.

S.B. 683
This act requires any mortgagee who is commencing foreclosure proceedings on owner-occupied residential property, to advise the mortgagor of the availability of counseling through HUD-approved mortgage counseling agencies. Failure upon the part of the mortgagee to provide said notice to the mortgagor of this requirement would render the foreclosure void. Counseling between the parties under this section would be mandatory, and at no cost to the mortgagee. Furthermore, the mortgagee must include in the foreclosure deed an affidavit of compliance with the provisions of this act.

South Carolina

H.B. 3107
Adds §29-3-795 so as to create the South Carolina Foreclosure Database in the office of the secretary of state by December 31, 2011; 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.

H.B. 3108
Adds §14-1-240 so as to create the "mandatory mortgage foreclosure mediation program" within the judicial department, to provide a required mediation process before a competent jurisdiction may order the sale of property subject to the foreclosure action, and to provide the department may promulgate rules needed to carry out the purpose of this section; and adds §29-3-625 so as to mandate mediation of a foreclosure action within a specific period following the initiation of a foreclosure action.

H.B. 3231
Adds §27-33-60 so as to provide that a preexisting rental agreement does not terminate upon the subsequent foreclosure of the landlord's mortgage.

H.B. 3237
Adds §39-5-180 so as to make it an unlawful trade practice for a bank, building and loan association, savings and loan association, savings bank, or other financial institution doing any kind of banking business in this state to fail to respond to a short sale offer for the purchase of real estate within 30 calendar days of the offer's receipt.

H.B. 3538
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.

H.B. 3988
Adds §29-3-795 so as to provide the commission of an act constituting the unauthorized practice of law in the course of or in conjunction with the negotiation, preparation, execution, or recording of a mortgage or mortgage modification shall not impair the validity or enforceability of the mortgage or mortgage modification, shall not impair the right of the mortgage holder to foreclose on or otherwise enforce a provision of the mortgage or modified mortgage, and shall not impair or restrict the right of a mortgagee to seek a legal or equitable remedy, and to provide that the limitations of this section are not intended and may not be construed to alter, impair, or otherwise affect the power of the South Carolina Supreme Court to define and regulate the practice of law in this state.

S.B. 789
Amends §15-39-720, relating to upset bids within 30 days after a foreclosure sale or an execution sale, so as to provide when a judicial sale occurs at the regular sale date and time for a county, the regularly scheduled sale date for the following month must be considered to be the 30th day for the purposes of submitting a timely upset bid regardless of the actual number of calendar days separating the two sale dates.

South Dakota
none
Tennessee

H.B. 1155
S.B. 1066
Revises various statutory provisions relevant to foreclosure.

H.B. 1522
S.B. 1610
Requires mandatory mediation between a bank or other financial institution and a borrower before foreclosure proceedings may be instituted on a deed of trust, mortgage, or other lien securing the payment of money or other thing of value.

H.B. 1531
S.B. 1613
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.

H.B. 1549
S.B. 1487
Excludes certain residential mortgage transactions from the application of the Tennessee Home Loan Protection Act; creates a pilot project in Shelby County for voluntary mediation prior to the foreclosure of loans entered into under such act.

H.B. 1920
Signed by governor 6/16/11, Public Chapter 505
S.B. 1299
Amends the requirement of advertisement for judicial or trust sales to one publication in the county where the sale is to be made and alters the description required in such advertisement.

H.B. 1921
Substituted 4/7/11
S.B. 1451
Signed by governor 4/25/11, Public Chapter 122
Revises various provisions related to the notice of the right to foreclose that must be sent by the lender to the debtor prior to foreclosure.

H.B. 1967
S.B. 2030
Requires Tennessee housing development agency to study feasibility of establishing a Tennessee foreclosure mediation program.

H.B. 2066
S.B. 1526
Authorizes the secretary of state to make a determination regarding whether or not a publication is a "newspaper of general circulation" for purposes of the publication of notices relative to foreclosures, land sales, transactions involving real property, or other legal notices required by statute.

Texas

H.B. 1218
Relates to foreclosure sales of residential real property occupied by a tenant.

H.B. 1392
Relates to a fee imposed on the transfer of property following a foreclosure sale to fund civil legal services for indigents.

H.B. 2197
Passed House 5/7/11
Clarifies what land can be acquired by a land bank. This bill states that to be sold to a land bank without a public sale, a property would not need to have a market value less than the total amount due under the foreclosure judgment. This bill also clarifies that a property would be eligible for the sale as long as it does not have a habitable building or an uninhabitable building that is occupied as a residence by a person who is legally entitled to do so. Also, the property owner would not be able to receive any sales proceeds unless the proceeds exceed the total amount due under the tax judgment. Taxing units would be prohibited from consenting to the sale of a property if the market value of the property (as appraised by the appraisal district and specified in the foreclosure judgment) exceeds the total amount due under the judgment.

H.B. 2224
Relates to reporting of certain information regarding foreclosure sales of residential real property.

H.B. 2410
Relates to servicer’s requirements to serve notice of default.

H.B. 2684
Relates to the foreclosure process; creating an offense; provides penalties.

H.B. 3116
Passed House 5/5/11
S.B. 1320
Signed by governor 6/17/11, Chapter 1242
Relates to deceptive trade practices in connection with executing and filing deeds in lieu of foreclosure.

H.B. 3363
S.B. 1507
Relates to the collection of certain foreclosure data by the Texas Department of Housing and Community Affairs.

H.B. 3364
Relates to the posting of a notice of foreclosure sale on a county’s Internet Website.

H.B. 3593
S.B. 1712
Relates to providing notice of foreclosure to certain lien holders.

H.B. 3760
Relates to home loans that are not federally related mortgage loans; provides restrictions on the use of deeds in lieu of foreclosure; and provides civil penalties.

S.B. 767
Signed by governor 6/17/11, Chapter 902
Amends current law relating to the regulation of certain residential mortgage foreclosure consulting services and provides a criminal penalty.

S.B. 1233
Signed by governor 6/17/11, Chapter 1341
Sets out procedures relating to foreclosure data collection by the Texas Department of Housing and Community Affairs.

S.B. 1508
Relates to the right of certain debtors to elect to mediate a dispute before the debt is accelerated or a contract lien on real property is foreclosed; provides civil penalties.

Utah

H.B. 326
Enacting clause stuck 3/10/11
This bill: modifies successor trustee provisions; requires successor lenders to record a notice of acquisition of beneficial interest; modifies notice of default provisions; requires trustees to mail a notice of default to the trustor; provides for additional information to be included in a notice of default; allows a trustor to request mediation following a notice of default; provides for a tolling of the period required before a notice of sale if the trustor makes a monthly payment; modifies a provision relating to reinstatement or payoff statements; and makes technical changes.

H.B. 379
Enacting clause struck 3/10/11
This bill: modifies a provision containing requirements for a notice of default relating to a nonjudicial foreclosure of a trust deed; requires the notice of default to include specified information; and makes technical changes.

H.B. 390
Short form bill that relates to wrongful foreclosure penalties.

S.B. 80
Short form bill that relates to a foreclosure mediation program.

S.B. 218
Enacting clause struck 3/10/11
This bill: modifies how fair market value may be calculated for purposes of some trust property involved in a trustee's sale; enacts provisions relating to certain loans by member-based lenders, as defined, including: provisions relating to borrowers, guarantors, and sureties on those loans; and mediation; and makes technical changes.

S.B. 261
Signed by governor 3/22/11, Chapter
This bill modifies provisions relating to trust deed foreclosures. This bill: imposes civil liability on a person who violates specified trustee provisions; modifies a provision relating to successor trustees; imposes a duty on a trustee who exercises a power of sale; and requires a beneficiary or the beneficiary's agent to provide notice to a trustor on a residential property if the beneficiary or agent does not intend to instruct a trustee to defer a notice of sale despite a temporary reduced payment arrangement and imposes civil liability for a failure to do so.

Vermont

H.B. 403
This bill proposes to update and consolidate statutory provisions regarding foreclosure of mortgages.

Virginia

H.B. 1506
Provides that the trustee under any deed of trust or mortgage shall not proceed with any sale of the property unless the land records of the locality in which the property is located contain a duly recorded assignment to the person who asserts that he is the holder of the obligation. The trustee may proceed with the sale (i) upon the recordation of any assignments not recorded or, if an intervening assignment cannot be located, upon the receipt of an affidavit from the party secured that he is the party secured by the deed of trust, and (ii) upon the payment by the person who asserts that he is the holder of the obligation of any fees and taxes for recording the assignment. The bill also provides that a nominee of a grantee or mortgagee for a deed of trust or mortgage has no authority to request that the trustee proceed with any sale of the property conveyed to him by the deed of trust or mortgage. The bill also requires that the party secured by the deed of trust or mortgage provide notice of his intent to foreclose to the property owner at least 45 days before any proposed sale. The bill provides further that a person who (i) knowingly makes, used, or causes to be made or used any false or fraudulent record, document, or statement or (ii) knowingly swears or affirms falsely to any matter, in support of any foreclosure is liable for a civil penalty of $5,000, which shall be paid into the local treasury. The bill also creates a civil cause of action for such a violation in favor of the owner of the property foreclosed upon.

H.B. 1665
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 informing the grantor (i) that the beneficiary has taken such action with respect to the loan and (ii) 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, de-accelerate, 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.

H.B. 1920
Provides that the trustee under a deed of trust or mortgage entered into on or after July 1, 2011, shall not proceed with any sale of property at the request of a person asserting that he is the holder of the obligation secured by the deed of trust or mortgage unless an instrument evidencing the assignment of the deed of trust or mortgage to such person is recorded in the land records of the locality where the property is located.

H.B. 1921
Provides that the trustee under any deed of trust or mortgage entered into on or after July 1, 2011, shall not proceed with any sale of the property unless the land records of the locality in which the property is located contain a duly recorded assignment to the person who asserts that he is the holder of the obligation. If the deed of trust or mortgage has been assigned more than once, the trustee shall not proceed with any sale unless each assignment has been duly recorded.

H.B. 2473
Provides that the trustee under any deed of trust or mortgage shall not proceed with any sale of the property unless the land records of the locality in which the property is located contain a duly recorded assignment to the person who asserts that he is the holder of the obligation. The trustee may proceed with the sale (i) upon the recordation of any assignments not recorded or, if an intervening assignment cannot be located, upon the receipt of an affidavit from the party secured that he is the party secured by the deed of trust, and (ii) upon the payment by the person who asserts that he is the holder of the obligation of any fees and taxes for recording the assignment. The bill also provides that a nominee of a grantee or mortgagee for a deed of trust or mortgage has no authority to request that the trustee proceed with any sale of the property conveyed to him by the deed of trust or mortgage. The bill also requires that the party secured by the deed of trust or mortgage provide notice of his intent to foreclose to the property owner at least 45 days before any proposed sale. The bill provides further that a person who (i) knowingly makes, used, or causes to be made or used any false or fraudulent record, document, or statement or (ii) knowingly swears or affirms falsely to any matter, in support of any foreclosure is liable for a civil penalty of $5,000, which shall be paid into the local treasury. The bill also creates a civil cause of action for such a violation in favor of the owner of the property foreclosed upon.

S.B. 795
Passed by indefinitely 2/7/11
Makes various changes to procedures for foreclosure, including requiring additional documentation showing the right of the beneficiary to request foreclosure, altering the requirements for providing notice prior to a foreclosure sale, and imposing additional fiduciary duties on the trustee. The bill also provides that violating foreclosure provisions is a prohibited practice under the Virginia Consumer Protection Act.

S.B. 798
Passed by indefinitely 2/7/11
Provides that a court must order the sale of property subject to foreclosure for deeds of trust entered into on or after July 1, 2011. Property secured by deeds of trust entered into prior to July 1, 2011, may still be foreclosed upon using current non-judicial procedures.

S.B. 836
Provides that written notice of the intent to foreclose shall be sent to the present owner of the property at least 30 days before any proposed sale in execution of a deed of trust. The notice shall contain the name and contact information for (i) the party secured, (ii) the mortgage servicer, if any, and (iii) an agent of the party secured who is authorized to modify the terms of the loan. The failure to comply with the notice requirements gives a private cause of action to the property owner.

S.B. 837
Passed Senate 2/8/11
Provides that a person who knowingly makes, uses, or causes to be made or used any false or fraudulent record, document, or statement in support of any foreclosure is liable for a civil penalty of $2,500, which shall be paid into the local treasury. The bill clarifies that the civil penalty provisions apply in addition to any applicable criminal penalties. The bill also creates a civil cause of action for such a violation in favor of the owner of the property foreclosed upon.

S.B. 1220
Signed by governor 3/25/11, Chapter 530
Provides that if a landlord fails to notify the tenant of a notice of mortgage acceleration, or notice of foreclosure sale relative to the loan on the dwelling unit, then the tenant has the right to terminate the rental agreement upon written notice to the landlord at least five business days prior to the effective date of termination. In addition, the bill requires a landlord to disclose in writing to any prospective tenant if he has received any notice of mortgage default, notice of mortgage acceleration, or notice of foreclosure sale relative to the loan on the dwelling unit.

Washington

H.B. 1362
Signed by governor 4/14/11, Chapter 58
S.B. 5275
Establishes the foreclosure fairness act to: (1) Encourage homeowners to use the skills and professional judgment of housing counselors as early as possible in the foreclosure process; (2) Create a framework for homeowners and beneficiaries to communicate with each other to reach a resolution and avoid foreclosure whenever possible; and (3) Provide a process for foreclosure mediation when a housing counselor or attorney determines that mediation is appropriate. Creates the foreclosure fairness account.

H.B. 1558
Creates incentives for lenders to renegotiate loans for borrowers who have negative equity but who have the ability to pay a lower mortgage that reflects the actual value of the house to prevent foreclosure and costs associated with foreclosure.

H.B. 2119, First Special Session
Signed by governor 6/7/11, Chapter 24
The beneficiaries required to remit payments to the Department of Commerce must make a one-time lump sum payment of $250 per owner-occupied residential real property for which notices of default were issued from April 14, 2011, through June 30, 2011. Beneficiaries must remit the onetime payment by July 31, 2011.

H.B. 2163, Second Special Session
Provides foreclosure mediators immunity from civil liability, except in cases of willful or wanton misconduct. Removes the requirement that a foreclosure mediator obtain a waiver signed by both parties stating that neither party may call the mediator as a live witness.

S.B. 5058
Signed by governor 4/13/11, Chapter 34
Modifies provisions regarding receiverships. Clarifies the time at which an action or proceeding for foreclosure or forfeiture is commenced for purposes of a provisional appointment of a receiver. Courts are provided flexibility to lengthen or shorten time frames addressed in administering receiverships for good cause.

S.B. 5590
Signed by governor 5/16/11, Chapter 364
Addresses lien holder requirements for certain foreclosure sales.

S.B. 5988, Second Special Session
Signed by governor 12/20/11, Chapter 4
Eliminates the requirement that the mediator have both parties sign a live-witness waiver and adds the live-witness waiver language to the statute. Mediators are provided with immunity while acting as a foreclosure mediator, except in cases of willful or wanton misconduct. In addition to the mediator's certification being admissible evidence, any and all information and material used as part of the mediation may be considered admissible evidence, subject to court rules, in any litigation relating to a foreclosure action between the parties.

West Virginia
none
Wisconsin

A.B. 137
This bill creates a process to allow a borrower who is in default on a first mortgage loan on a residential property (a one-family to four-family dwelling) to pursue a loan modification during a mortgage foreclosure action. Under the bill, before a first lien residential mortgage holder or its servicing agent (mortgagee) may commence an action to foreclose the mortgage, the mortgagee must provide a written notice (default-foreclosure notice) to the borrower that contains all of the following information: 1) that the mortgage is in default and a mortgage foreclosure action may be commenced, the reason that the mortgage is in default, and the action required of the borrower to cure the default; 2) the name, address, and telephone number of a mortgagee negotiator with authority to enter into negotiations regarding modifications to the residential mortgage loan; 3) the names and addresses of credit counseling services for homeowners; 4) that the borrower may request loan modifications by sending the request to the mortgagee negotiator within ten working days after receiving the notice; 5) the calculations and eligibility criteria used to determine if the borrower is eligible for any loan modifications; 6) the documents needed to determine the borrower’s gross income; 7) that, if the borrower makes a timely request for loan modifications and provides the documents needed to determine the borrower’s gross income, the borrower may meet with the mortgagee negotiator to discuss the modifications accompanied by an attorney or other person; 8) that, if the borrower does not make a timely request for loan modifications or provide the documents needed to determine the borrower’s gross income, the mortgage foreclosure action may proceed; 9) that, if the parties reach an agreement to modify the residential mortgage loan, the mortgage may not be foreclosed if the borrower complies with the terms of the modified agreement; and 10) that the mortgagee and borrower may agree to a method other than loan modifications to resolve the loan default. A borrower, within 10 working days of receiving this notice, may request loan modifications by sending the request to the mortgagee negotiator. If a timely request is made and if the documents are provided that are needed to determine the borrower’s gross income, the mortgagee negotiator and borrower must meet in person in the county where the residential property is located or by telephone or other communication to negotiate, in good faith, modifications to the residential mortgage loan. Based on available information, the mortgagee negotiator must determine if the borrower is eligible for a loan modification. The borrower is eligible if the borrower’s current housing-related debt is 38 percent or more of the borrower’s gross income. If the borrower is eligible, the mortgagee negotiator must offer one or more of the following loan modifications to lower the borrower’s housing-related debt to less than 38 percent of the borrower’s gross income: 1) an interest rate reduction, subject to a floor of three percent, for a fixed period of at least five years, after which the interest rate may increase within specified parameters; 2) an extension of the amortization period for the residential mortgage loan term to 40 years or less from the date of the loan modification; 3) the deferral of payment of up to 20 percent of the unpaid balance of the residential mortgage loan, until maturity of the loan, refinancing of the loan, or sale of the residential property; or 4) the reduction or elimination of late fees or penalties. However, for certain residential mortgage loans, the mortgagee negotiator must follow government guidelines for loan modifications. Not later than 30 calendar days after the borrower submits the documents that are needed to determine the borrower’s gross income, the mortgagee negotiator must notify the borrower as to whether the borrower is eligible for modifications to the residential mortgage loan. If the borrower is not eligible, the notice must include a statement explaining the eligibility criteria and why the borrower has not met these criteria. If the borrower is eligible, the notice must include two copies of the mortgage modification agreement proposed by the mortgagee negotiator along with a notice telling the borrower to sign a copy of the proposal and return it to the mortgagee negotiator within ten working days after receipt of the proposal. If the borrower is eligible, but the mortgagee negotiator determines that it is not possible to lower the borrower’s housing-related debt to less than 38 percent of the borrower’s gross income, the mortgagee negotiator shall inform the borrower of how that determination was made. Regardless of whether the borrower is eligible, the notice must include a copy of any calculations used by the mortgagee negotiator to determine the borrower’s eligibility. The notice must also include, if requested by the borrower, a copy of the program, process, or guidelines the mortgagee negotiator used to determine which loan modification to offer the borrower or that none of the available modifications lower the borrower’s housing-related debt to less than 38 percent of the borrower’s gross income. If the borrower is eligible, the borrower must, to accept the proposal, mail his or her signed acceptance of the proposed mortgage modification agreement to the mortgagee negotiator within ten working days of receiving it. A mortgagee may only foreclose on a residential property if: 1) the mortgage has been properly recorded; 2) the borrower has defaulted on a condition of the mortgage that gives the mortgagee the right to foreclose; 3) there is a record chain of title for the mortgage, if the mortgagee is not the original mortgagee; and 4) the mortgagee has satisfied the requirements specified above, unless the mortgagee and borrower agreed within the previous three years to a loan modification and the mortgagee but not the borrower complied with the terms of the modification agreement. If the mortgagee negotiator determines that the borrower is not eligible for a modification to the residential mortgage loan, or that none of the available modifications reduce the borrower’s housing-related debt to less than 38 percent of gross income, the mortgagee must wait at least 20 working days after mailing the ineligibility notice before commencing an action to foreclose on the mortgage. If the mortgagee negotiator determines that the borrower is eligible for a loan modification, the mortgagee may only commence the action if the mortgagee negotiator in good faith offered the borrower a mortgage modification agreement and the borrower failed to timely accept it. A court must dismiss the foreclosure action of a mortgagee that has failed to comply with the requirements of the bill. The bill applies only to foreclosure actions commenced on or after the bill’s effective date and before December 31, 2014, or involving default-foreclosure notices provided before December 31, 2014.

Wyoming

H.B. 189
Signed by governor 3/3/11, Chapter 173
Relates to real property; specifies conditions under which a foreclosure sale can be rescinded by a seller; specifies damages in the event of rescission; amends redemption periods for agricultural land; amends manner in which distinct lots or tracts are sold; and provides for an effective date.

 

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