Foreclosures 2012 Legislation

Foreclosure signUpdated Feb. 6, 2013

(Excludes foreclosures due to tax delinquencies and homeowner associations)

The housing market continues to be turbulent. Delinquent payments and the number of homeowners entering foreclosure continue to rise, affecting even prime and Federal Housing Administration (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 2012, lawmakers in 40 states, 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.

Thirty-three states, the District of Columbia and Puerto Rico enacted legislation or adopted resolutions in 2012.

California enacted several bills that incorporate the mortgage servicing provisions of the National Mortgage Settlement into state law. Colorado amended the administrative procedures related to a foreclosure sale. Connecticut made it easier for applicants to qualify for the state’s emergency mortgage assistance program, which provides short-term loans to homeowners experiencing financial hardships beyond their control. Delaware amended its foreclosure mediation program to make clear that the Superior Court can allow non-profit legal service providers to perform the function of the HUD-certified housing counselors in the mediation process.

Florida redirected revenue from filing fees for certain civil actions in circuit court relating to real property or mortgage foreclosure from the State Courts Revenue Trust Fund to the state's General Revenue Fund. Georgia enacted bills that provide for vacant and foreclosed real property registries and provide that notices of sales made on foreclosure under power of sale shall be provided to all debtors. Hawaii enacted legislation that made permanent the mortgage foreclosure dispute resolution program and the process for converting non-judicial foreclosures of residential property into judicial foreclosures and required the Office of Consumer Protection to educate consumers about fraudulent activities that may be committed against homeowners who face property foreclosures.

Idaho prohibited trustees from profiting, directly or indirectly, based on the publication of a notice of a trustee's sale. Illinois enacted legislation that provides that in a foreclosure of a 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. Indiana provides a procedure that allows a court to find that a mortgaged property is abandoned.

Kentucky created an expedited sale mechanism for foreclosures involving vacant and abandoned real property. Louisiana authorized municipalities to enact ordinances relative to abandoned properties. Maryland, among other bills, required the Department of Labor, Licensing, and Regulation to establish and maintain a Foreclosed Property Registry. Massachusetts provided procedures for the notice and public publishing of a foreclosure sale and established a task force to study mortgage mediation programs. Pennsylvania provided for the Homeowner Assistance Settlement Act to establish a fund for the purpose of funding the Homeowner's Emergency Mortgage Assistance Program.

Puerto Rico created the Compulsory Mediation and Your Home Preservation Act. Rhode Island enacted legislation that stays or prohibits the foreclosure on property owned by persons in the military under certain circumstances. Utah enacted legislation that required a beneficiary or servicer to appoint a single point of contact upon determining that a loan on an owner-occupied residential property is in default and barred an action to recover a deficiency following a short sale of single-family residential property unless the action is commenced no later than three months after the short sale. Washington limited deficiency judgments pertaining to residual debts following short sales of owner-occupied residential property secured by deeds of trust. Wisconsin shortened the redemption period for abandoned properties from two months to five weeks and listed some factors for determining whether a property has been abandoned.

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STATES
BILL SUMMARY
Alabama
H.B. 433
Signed by governor 5/24/12, Act 568
Makes appropriations for the ordinary expenses of the executive, legislative and judicial agencies of the state, for other functions of government, debt service and for capital outlay for the fiscal year ending September 30, 2013; includes appropriations from the National Mortgage Settlement.
Alaska
H.B. 317
Provides that a mortgage business may not bring an action to foreclose on or sell the real property that secures a mortgage unless the mortgage business complies with provisions regarding the filing of an affidavit that the business has made reasonable efforts and offered a reasonable payment plan before bringing a foreclosure action.
Arizona
H.B. 2136
Provides that for any property 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 homeowner’s 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. 2173
Provides an exception on deficiency judgments that if the mortgage was foreclosed by a person who is an assignee or is otherwise not the original mortgagee on the mortgage, the amount of any deficiency that may be recovered from the mortgagor is limited to the amount paid by the assignee for the mortgage assignment, less the fair market value of the property on the date of the sale as determined by the court or the sale price at the foreclosure sale, whichever is higher.
H.B. 2300
Upon receipt of a notice of sale under the deed of trust, this bill provides for an affidavit of temporary stay of the trustee’s sale. The trustee shall set the 60-day postponement period to give the homeowner time to negotiate revised payment terms.
H.B. 2301
Provides that 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 pursuant to subsection a of this section to the beneficiary within 90 days after receiving the notice of pending foreclosure, the city or town 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. 2315
Provides for taxable years beginning from and after Dec. 31, 2011, in computing Arizona adjusted gross income, a qualifying taxpayer may subtract from Arizona gross income a percentage of the amount of rent paid by the taxpayer to lease the taxpayer's primary residence in this state during the taxable year, exclusive of any amount of the rental payments attributable to deposits, utilities, taxes or other fees independent of the right to occupy the residence. To qualify for the subtraction under this section, the taxpayer must have lost title to the taxpayer's owner-occupied residence in this state by foreclosure, or voluntarily in lieu of foreclosure, within the 36 months immediately preceding the last day of the taxable.
H.B. 2326
Provides the defaulting homeowner a right to rent the foreclosed property.
H.B. 2327
Relates to foreclosure, equity purchasers and mortgage consultants, sale of a residence in foreclosure, reconveyance contracts and foreclosure consultants.
H.B. 2517
Provides an exception on deficiency judgments that if the mortgage was foreclosed by a person who is an assignee or is otherwise not the original mortgagee on the mortgage, the amount of any deficiency that may be recovered from the mortgagor is limited to the amount paid by the assignee for the mortgage assignment, less the fair market value of the property on the date of the sale as determined by the court or the sale price at the foreclosure sale, whichever is higher.
H.B. 2584
Limits deficiency judgments on short sales.
H.B. 2618
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 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. 2682
Regulates the duties and conduct of mortgage loan servicers and provides remedies.
H.B. 2833
Establishes a foreclosure mediation program in the administrative office of the courts.
H.B. 2852
Provides for reporting requirements and conditional enactment. Includes appropriates from the National Mortgage Settlement.
S.B. 1523
Signed by governor 5/7/12, Chapter 294
Provides for appropriations and budget reductions, limitations and transfers for the different departments of the state, for state institutions and for public schools for fiscal years 2011-2012, 2012-2013 and 2013-2014. Provides for certain reporting requirements, conditional enactment and appropriates from the National Mortgage Settlement.
Arkansas
none
California
A.B. 278
Signed by governor 7/11/12, Chapter 86
(1) Existing law, until Jan. 1, 2013, requires a mortgagee, trustee, beneficiary, or authorized agent to contact the borrower prior to filing a notice of default to explore options for the borrower to avoid foreclosure, as specified. Existing law requires a notice of default or, in certain circumstances, a notice of sale, to include a declaration stating that the mortgagee, trustee, beneficiary, or authorized agent has contacted the borrower, or has tried with due diligence to contact the borrower, or that no contact was required for a specified reason. This bill adds mortgage servicers, as defined, to these provisions and extends the operation of these provisions indefinitely, except that it deletes the requirement with respect to a notice of sale. The bill, until Jan. 1, 2018, additionally requires the borrower, as defined, to be provided with specified information in writing prior to recordation of a notice of default and, in certain circumstances, within five business days after recordation. The bill prohibits a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent from recording a notice of default or, until Jan. 1, 2018, recording a notice of sale or conducting a trustee's sale while a complete first lien loan modification application is pending, under specified conditions. The bill, until Jan. 1, 2018, establishes additional procedures to be followed regarding a first lien loan modification application, the denial of an application, and a borrower's right to appeal a denial. (2) Existing law imposes various requirements that must be satisfied prior to exercising a power of sale under a mortgage or deed of trust, including, among other things, recording a notice of default and a notice of sale. The bill, until Jan. 1, 2018, requires a written notice to the borrower after the postponement of a foreclosure sale in order to advise the borrower of any new sale date and time, as specified. The bill provides that an entity shall not record a notice of default or otherwise initiate the foreclosure process unless it is the holder of the beneficial interest under the deed of trust, the original or substituted trustee, or the designated agent of the holder of the beneficial interest, as specified. The bill prohibits recordation of a notice of default or a notice of sale or the conduct of a trustee's sale if a foreclosure prevention alternative has been approved and certain conditions exist and, until Jan. 1, 2018, requires recordation of a rescission of those notices upon execution of a permanent foreclosure prevention alternative. The bill, until Jan. 1, 2018, prohibits the collection of application fees and the collection of late fees while a foreclosure prevention alternative is being considered, if certain criteria are met, and requires a subsequent mortgage servicer to honor any previously approved foreclosure prevention alternative. The bill authorizes a borrower to seek an injunction and damages for violations of certain of the provisions described above, except as specified. The bill authorizes the greater of treble actual damages or $50,000 in statutory damages if a violation of certain provisions is found to be intentional or reckless or resulted from willful misconduct, as specified. The bill authorizes the awarding of attorneys' fees for prevailing borrowers, as specified. Violations of these provisions by licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate would also be violations of those respective licensing laws. The bill provides that the requirements imposed on mortgage servicers, and mortgagees, trustees, beneficiaries, and authorized agents, described above are applicable only to mortgages or deeds of trust secured by residential real property not exceeding four dwelling units that is owner-occupied, as defined, and, until Jan. 1, 2018, only to those entities who conduct more than 175 foreclosure sales per year or annual reporting period, except as specified. The bill requires, upon request from a borrower who requests a foreclosure prevention alternative, a mortgage servicer who conducts more than 175 foreclosure sales per year or annual reporting period to establish a single point of contact and provides the borrower with one or more direct means of communication with the single point of contact. The bill specifies various responsibilities of the single point of contact. The bill defines single point of contact for these purposes. (3) Existing law prescribes documents that may be recorded or filed in court. This bill requires that a specified declaration, notice of default, notice of sale, deed of trust, assignment of a deed of trust, substitution of trustee, or declaration or affidavit filed in any court relative to a foreclosure proceeding or recorded by or on behalf of a mortgage servicer shall be accurate and complete and supported by competent and reliable evidence. The bill requires that before recording or filing any of those documents, a mortgage servicer shall ensure that it has reviewed competent and reliable evidence to substantiate the borrower's default and the right to foreclose, including the borrower's loan status and loan information. The bill, until Jan. 1, 2018, provides that any mortgage servicer that engages in multiple and repeated violations of these requirements shall be liable for a civil penalty of up to $7,500 per mortgage or deed of trust, in an action brought by specified state and local government entities, and also authorizes administrative enforcement against licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate. The bill authorizes the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate to adopt regulations applicable to persons and entities under their respective jurisdictions for purposes of the provisions described above. The bill provides that a violation of those regulations would be enforceable only by the regulating agency. (4) The bill states findings and declarations of the Legislature in relation to foreclosures in the state generally, and states the purposes of the bill.
A.B. 856
Died pursuant to Art. IV, Sec. 10(c) of the Constitution 2/1/12
The Personal Income Tax Law conforms to specified provisions of the federal Mortgage Forgiveness Debt Relief Act of 2007, relating to the exclusion of the discharge of qualified principal residence indebtedness, as defined, from a taxpayer's income if that debt is discharged after Jan. 1, 2007, and before Jan. 1, 2010, as provided. The federal Emergency Economic Stabilization Act of 2008 extended the operation of those provisions to debt that is discharged before Jan. 1, 2013. This bill would provide further conformity to those federal acts, as provided.
A.B. 935
Died pursuant to Art. IV, Sec. 10(c) of the Constitution 2/1/12
This bill, until Jan. 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 money in trust until a notice of rescission is filed, at which time the funds would be returned to the mortgage servicer, or until a trustee deed of sale is filed, at which time the money 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 money 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
Died pursuant to Art. IV, Sec. 10(c) of the Constitution 2/1/12
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 recording. 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.
A.B. 1464
Signed by governor 6/27/12, Chapter 21
Makes appropriations for support of state government for the 2012-13 fiscal year; includes appropriations from the National Mortgage Settlement.
A.B. 1495
Makes appropriations for support of state government for the 2012-13 fiscal year; includes appropriations from the National Mortgage Settlement.
A.B. 1547
(1) Existing law, until Jan. 1, 2013, requires a 30-day notice, as specified, to be given to the borrower of certain home mortgages, as specified, before a mortgagee, trustee, beneficiary, or authorized agent may file a notice of default. Existing law requires the notice of default to include certain information, as specified. Existing law also requires contact with the borrower, as defined, in order to assess the borrower's financial situation and explore options for the borrower to avoid foreclosure. Existing law authorizes a borrower to designate a HUD-certified housing counseling agency, attorney, or other advisor to discuss with the mortgagee, beneficiary, or authorized agent, on the borrower's behalf, options for the borrower to avoid foreclosure. Under existing law, it is a crime to tear down the notice of sale posted on a property within 72 hours of posting. Existing law, until Jan. 1, 2013, requires a legal owner to maintain vacant residential property acquired through foreclosure. Existing law also authorizes a governmental entity to impose civil fines and penalties for failure to maintain that property of up to $1,000 per day for a violation, after notice and an opportunity to correct the violation is given. This bill deletes the repeal clause for these provisions and thus extends the operation of these provisions indefinitely. (2) Existing law, until Jan. 1, 2013, requires a tenant or subtenant in possession of a rental housing unit at the time the property is sold in foreclosure to be given 60 days written notice to quit the property before being removed. This bill deletes the repeal clause for this provision and thus extends the operation of this provision indefinitely.
A.B. 1557
Existing law, until Jan. 1, 2013, requires a legal owner to maintain vacant residential property purchased at a foreclosure sale, or acquired by that owner through foreclosure under a mortgage or deed of trust. Existing law, until Jan. 1, 2013, authorizes a governmental entity to impose civil fines and penalties for failure to maintain that property of up to $1,000 per day for a violation. Existing law, until Jan. 1, 2013, requires a governmental entity that seeks to impose those fines and penalties to give notice of the claimed violation and an opportunity to correct the violation at least 14 days prior to imposing the fines and penalties, and to allow a hearing for contesting those fines and penalties. This bill extends the operation of these provisions until Jan. 1, 2018.
A.B. 1599
Signed by governor 9/25/12, Chapter 556
(1) Existing law requires that, upon a breach of the obligation of a mortgage or transfer of an interest in property, the mortgagee, trustee, or beneficiary record a notice of default in the office of the county recorder where the mortgaged or trust property is situated and mail the notice of default to the mortgagor or trustor. Existing law specifies other requirements and procedures for completion of a foreclosure sale, including recording a notice of sale prior to exercising a power of sale. Existing law requires, under specified circumstances, that a summary of mortgage terms be provided to the borrower in one of five specified languages. This bill, with respect to residential real property containing no more than four dwelling units, requires a mortgagee, trustee, beneficiary, or authorized agent to provide to the mortgagor or trustor attached to a copy of the recorded notice of default and a copy of the notice of sale a summary of the information required to be contained in those notices in English and five specified languages. The bill also requires the notice of default and notice of sale to include a statement, in English and five specified languages, that a summary of the key provisions of the respective notice in English and five specified languages is attached. The bill provides that the attached summaries are not required to be recorded or published. Those provisions become operative on April 1, 2013, or 90 days following the issuance of summary translations by the Department of Corporations, whichever occurs later. The bill also requires the Department of Corporations to provide a standard translation of the statement and summaries described above for a notice of default and a notice of sale, respectively, in those languages, and to make those documents available without charge on its Internet Web site. The bill specifies that any mortgagee, trustee, beneficiary, or authorized agent who provides the department's translations, in the manner prescribed, shall be in compliance with that provision. (2) This bill incorporates additional changes to Section 2924 of the Civil Code proposed by AB 278, to be operative only if AB 278 and this bill are both enacted, both bills amend Section 2924 of the Civil Code and are effective on or before Jan. 1, 2013, and this bill is enacted last. (3) The bill repeals duplicate provisions of law.
A.B. 1602
(1) Existing law, until Jan. 1, 2013, requires a mortgagee, trustee, beneficiary, or authorized agent to contact the borrower prior to filing a notice of default to explore options for the borrower to avoid foreclosure, as specified. Existing law requires a notice of default to include a declaration stating that the trustee, beneficiary, or authorized agent has contacted the borrower, or has tried with due diligence to contact the borrower, or that no contact was required for a specified reason. This bill additionally requires the borrower to be provided, if applicable, with a deadline for the borrower to submit an initial application for a loan modification. The bill requires the declaration to also state that the borrower was not a servicemember or dependent of a servicemember entitled to benefits under the federal Servicemembers Civil Relief Act, that the mortgagee, trustee, beneficiary, or authorized agent has possession of the note and mortgage, or deed of trust, and other specified documents that evidence the right to foreclose, and has attached copies thereof to the declaration, as specified, or a separate declaration containing specified information, if the above described documents cannot be located. The bill prescribes procedures and notices that must be sent by the mortgagee, trustee, beneficiary, or authorized agent if the notice of default was filed prior to Jan. 1, 2013, and a notice of rescission was not subsequently recorded. The bill prohibits recording a notice of default unless a specified written notice has been sent at least 14 days before a notice of default is recorded. The bill prohibits a notice of default from being recorded while a loan modification application is pending, under specified conditions, and establishes additional procedures to be followed regarding the loan modification application before a notice of default could be recorded. (2) Existing law imposes various requirements that must be satisfied prior to exercising a power of sale under a mortgage or deed of trust, including, among other things, recording a notice of sale. This bill imposes additional requirements pertaining to applications for loan modifications that must be satisfied prior to recording a notice of sale in order to exercise a power of sale. The bill requires a written notice to the borrower after the postponement of a foreclosure sale in order to advise the borrower of any new sale date, time, and location when the new sale date is at least 10 calendar days after the date of postponement, as specified. The bill establishes procedures for a loan modification application process to be used after a notice of sale has been recorded. The bill prohibits a notice of sale from being recorded under certain conditions, including, among others, if the borrower is in compliance with a loan modification plan, forbearance, or loan repayment plan, as specified, or if a short sale or deed-in-lieu of foreclosure has been approved, as specified. The bill requires mortgagees, trustees, beneficiaries, or authorized agents to track and record specified data pertaining to loan modification agreements. The bill prohibits the collection of late fees while a loan modification or short sale is being considered, if certain criteria are met. (3) The bill repeals duplicate provisions of law. (4) The bill authorizes a borrower to seek an injunction of a pending trustee's sale if a notice of sale has been recorded and the borrower reasonably believes that the mortgagee, trustee, beneficiary, or authorized agent failed to comply with specified requirements. The bill authorizes the greater of actual damages or $10,000 in statutory damages if there is a failure to comply with specified requirements by the mortgagee, trustee, beneficiary, or authorized agent and the property is sold at a foreclosure sale. The bill authorizes the greater of treble damages or $50,000 in statutory damages if the failure to comply is found to be intentional or reckless or resulted from willful misconduct, as specified. (5) The bill establishes the Office of Homeowner Protection, that would have responsibility, among other things, for responding to inquiries and complaints from individuals regarding foreclosures and other procedures and requirements as described above, attempting to seek compliance by mortgagees, trustees, beneficiaries, or authorized agents regarding foreclosures and other procedures and requirements as described above, and maintaining an Internet Web site that is capable of receiving inquiries and complaints from individuals and that provides information to the public about publicly available resources intended to help individuals avoid foreclosure. The bill expresses the intent of the Legislature that the office be funded by payments made available to the attorney general via the Special Deposit Fund, created pursuant to specified federal settlement agreements.
A.B. 1745
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. As of April 1, 2012, existing law also requires that the notice of sale 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. This bill prohibits a mortgagee, beneficiary, or authorized agent from recording a notice of sale pursuant to the above provisions after providing written approval of a short sale, as defined. The bill also authorizes a mortgagee, trustee, beneficiary, or authorized agent to withdraw an approval of a short sale if the mortgagor or trustor fails to comply with a condition of the written short sale agreement. The bill also requires a written notice to be provided to a mortgagor or trustor not less than three days following the written the withdrawal of approval that includes the reason or reasons for the withdrawal. The bill also provides that the prohibition against recording a notice of sale would not apply after written withdrawal of a short sale approval is provided to a mortgagor or trustor, unless subsequent approval of a short sale is provided.
A.B. 1950
Signed by governor 9/25/12, Chapter 569
Existing law, until Jan. 1, 2013, prohibits any person who negotiates or arranges residential mortgage loan modifications, as specified, for a fee, from demanding or receiving pre-performance compensation, as specified, or requiring security as collateral or taking a power of attorney from the borrower and makes a violation of that prohibition a misdemeanor subject to specified fines. Existing law, until Jan. 1, 2013, also prohibits certain conduct by a real estate licensee in connection with a mortgage loan modification or forbearance, including demanding compensation before service is fully performed, taking a lien on property or wage assignment, or taking a power of attorney from the borrower. A violation of those prohibitions is a misdemeanor. This bill extends the operation of the above-described provisions indefinitely. Existing law provides that any person advertising or holding himself or herself out as practicing or entitled to practice law or otherwise practicing law who is not an active member of the State Bar, or any person acting or advertising themselves as a real estate broker, real estate salesperson, or mortgage loan originator without a license or license endorsement, is guilty of a misdemeanor. Existing law requires any person, including a person licensed to practice law, who performs a mortgage loan modification or other form of mortgage loan forbearance for a fee or other compensation, as specified, to provide a specified notice to the borrower concerning third parties arranging loan modifications. Existing law also prohibits certain conduct by that person including, among other things, demanding compensation before service is fully performed, taking a lien on property or a wage assignment, or taking a power of attorney from the borrower. Existing law provides that a violation of these requirements or prohibitions is a misdemeanor with specified penalties. Existing law requires that a prosecution for these offenses be commenced within one year of the commission of the offense. This bill extends the time to commence a prosecution for these offenses to three years from the discovery of the commission of the offense, or within three years after completion of the offense, whichever is later.
A.B. 2057
Existing law specifies the time during which a mortgagor, trustor, or other authorized person may cure a default on an obligation secured by deed of trust or mortgage on real property that has been declared due by reason of default, as specified. Existing law also provides that if the trustor, mortgagor, or other person authorized to cure the default, as specified, does cure the default, the beneficiary or mortgagee or the agent for the beneficiary or mortgagee is required to, within 21 days following the reinstatement, execute and deliver to the trustee a notice of rescission that rescinds the declaration of default and demand for sale and advises the trustee of the date of reinstatement. This bill makes a nonsubstantive change to those provisions.
A.B. 2314
Signed by governor 9/27/12, Chapter 201
(1) Existing law, until Jan. 1, 2013, requires a legal owner to maintain vacant residential property purchased at a foreclosure sale or acquired by that owner through foreclosure under a mortgage or deed of trust. Existing law, until Jan. 1, 2013, authorizes a governmental entity to impose civil fines and penalties for failure to maintain that property of up to $1,000 per day for a violation. Existing law, until Jan. 1, 2013, requires a governmental entity that seeks to impose those fines and penalties to give notice of the claimed violation and an opportunity to correct the violation at least 14 days prior to imposing the fines and penalties, and to allow a hearing for contesting those fines and penalties. This bill deletes the repeal clause for these provisions and thus extends the operation of these provisions indefinitely. (2) The State Housing Law requires the housing or building department or, if there is no building department, the health department, of every city, county, or city and county, or a specified environmental agency, to enforce within its jurisdiction all of the State Housing Law, the building standards published in the State Building Standards Code, and other specified rules and regulations. If there is a violation of these provisions or any order or notice that gives a reasonable time to correct that violation, or if a nuisance exists, an enforcement agency is required, after 30 days' notice to abate the nuisance, to institute any appropriate action or proceeding to prevent, restrain, correct, or abate the violation or nuisance. This bill prohibits an enforcement agency from commencing any action or proceeding until at least 60 days after a person takes title to the property, unless a shorter period of time is deemed necessary by the enforcement agency in its sole discretion, as specified, if the person has purchased and is in the process of diligently abating any violation at a residential property that had been foreclosed on or after Jan. 1, 2008. This bill requires any entity that releases a lien securing a deed of trust or mortgage on a property for which a notice of pendency of action, as defined, has been recorded against the property, as specified, to notify in writing the enforcement agency that issued the order or notice within 30 days of releasing the lien. (3) Existing law authorizes, among other things, the enforcement agency to seek and the court to order imposition of specified penalties or the enforcement agency, tenant, or tenant association or organization to seek, and the court to order, the appointment of a receiver for a substandard building, if the owner of the property fails to comply within a reasonable time with the terms of an order or notice. This bill authorizes a court to require the owner of the property to pay all unrecovered costs associated with the receivership in addition to any other remedy authorized by law.
A.B. 2425
(1) Existing law prescribes foreclosure procedures, including, among other things, procedures for recording a notice of default, recording a notice of sale, and conducting a foreclosure sale. This bill defines a mortgage servicer, and, commencing July 1, 2013, requires a mortgage servicer to establish a single point of contact when a borrower on a residential mortgage or deed of trust is 60 or more days delinquent, has had a notice of default recorded, or is seeking a loan modification or other loss mitigation, as specified. The bill imposes various obligations on the single point of contact in connection with loan modification or other loss mitigation options. (2) Existing law imposes various requirements that must be satisfied prior to exercising a power of sale under a mortgage or deed of trust, including, among other things, recording a notice of default. This bill prohibits an entity from recording a notice of default or otherwise initiating foreclosure procedures unless the entity is the holder of the beneficial interest under the deed of trust, and prohibits an entity acting as an agent from doing so without specific direction from the actual owner of the beneficial interest under the deed of trust. (3) Existing law authorizes the recording by the county recorder of various documents. This bill provides that a document that contains factual assertions that are not accurate, are incomplete, or are unsupported by competent, reliable evidence, or a document that has not been reviewed by its signer to substantiate the factual assertions contained in the document is a robosigned document. The bill provides that any entity that records a robosigned document, or files a robosigned document in a court relative to a foreclosure proceeding is liable for a civil penalty of $10,000 for each robosigned document. The bill authorizes specified governmental entities to enforce the civil penalty, and authorizes the Department of Real Estate, the Department of Corporations, and the Department of Financial Institutions to enforce the civil penalty provisions against their respective licensees. (4) The bill authorizes a borrower to seek an injunction of a pending trustee's sale, if a notice of sale has been recorded and the borrower reasonably believes that the mortgagee, trustee, beneficiary, or authorized agent failed to comply with specified requirements. The bill authorizes the greater of actual damages or $10,000 in statutory damages if there is a failure to comply with specified requirements by the mortgagee, trustee, beneficiary, or authorized agent and the property is sold at a foreclosure sale. The bill authorizes the greater of treble damages or $50,000 in statutory damages if the failure to comply is found to be intentional or reckless or resulted from willful misconduct, as specified. (5) Existing law provides that where the power to sell real property is given to a mortgagee or other encumbrancer, in an instrument intended to secure the payment of money, the power is part of the security and vests with any person who by assignment becomes entitled to payment of the money. This bill expands these provisions to include a power to sell real property given to a trustee or a beneficiary of a deed of trust in an instrument intended to secure the payment of money. (6) The bill repeals duplicate provisions of law.
A.B. 2447
Passed Assembly 5/29/12
This bill establishes the California Neighborhood Revitalization Partnership Act of 2012, to be administered by the Department of Housing and Community Development, to provide funding to local public agencies or nonprofit corporations for the purchase and improvement of foreclosed or abandoned single-family or multifamily residential properties and for down-payment assistance associated with the resale of an improved property, subject to specified requirements. The bill authorizes the Department of Housing and Community Development to expend $25 million of the bond money available in the Self-Help Housing Fund for this purpose.
A.B. 2528
This bill requires that in order for a notice of default to be recorded, it include a declaration stating that the mortgagee, trustee, or authorized agent contacted the borrower to determine if the borrower is an active duty service member. If the borrower is an active duty service member, or was an active duty service member 90 days prior to the date the notice of default is to be recorded, that the mortgagee, trustee, or authorized agent has complied with the federal Servicemembers Civil Relief Act.
H.B. 2532
Existing law regulates the terms and conditions of mortgages and deeds of trust secured by real property. Existing law provides that a mortgagee, trustee, beneficiary, or authorized agent may not file a notice of default until 30 days after initial contact with the borrower is made, as specified, or 30 days after satisfying specified due diligence requirements. This bill makes a nonsubstantive change to these provisions.
A.B. 2557
Existing law, until Jan. 1, 2013, requires a legal owner to maintain vacant residential property purchased or acquired through foreclosure. Existing law also authorizes a governmental entity to impose civil fines for failure to maintain that property of up to $1,000 per day for a violation, after notice and an opportunity to correct the violation is given. This bill, until Jan. 1, 2016, authorizes a person whose property is in Los Angeles County and who is injuriously affected or whose enjoyment is lessened by a property owner's violation of those property maintenance provisions to bring an action for injunctive relief. The bill requires a person who seeks an injunction to provide the legal owner by mail a written description of the conditions that gave rise to the violation, and identify the person's intent to seek an injunction if action to correct the violation is not commenced and completed within a specified period of time. The bill authorizes an action to be brought either in a small claims court or the Superior Court of Los Angeles County. The bill also authorizes a prevailing plaintiff to recover court costs and reasonable attorney's fees if the action is brought in superior court. Existing law provides for abatement of substandard conditions in buildings and authorizes an enforcement agency to issue an order or notice to repair or abate violations of specified building standards. Under existing law, if the owner of a property with substandard conditions fails to comply within a reasonable time period with the terms of the order or notice, the enforcement agency, tenant, or tenant association or organization may seek, and the court may order, the appointment of a receiver for the substandard building. This bill also authorizes any district attorney, county counsel, or city attorney with jurisdiction over the substandard building, acting in the name of the people, to seek a court order for the appointment of a receiver for the substandard building.
A.B. 2610
Signed by governor 9/25/12, Chapter 562
(1) Existing law requires a notice of sale to be posted before any power of sale can be exercised under the power of sale contained in any deed of trust or mortgage. Existing law, until Jan. 1, 2013, requires a resident of property upon which a notice of sale has been posted to be provided a specified notice advising the resident that, among other things, if the person is renting the property, the new property owner may either give the tenant a new lease or rental agreement, or provide the tenant with a 60-day eviction notice, and that other laws may prohibit the eviction or provide the tenant with a longer notice before eviction. Existing law makes it an infraction to tear down the notice within 72 hours of posting. Existing law requires a state government entity to make translations of the notice available in five specified languages, for use by a mortgagee, trustee, beneficiary, or authorized agent, in order to satisfy the notice requirements. This bill revises certain portions of the notice to instead require a resident of property upon which a notice of sale has been posted to be advised that if the person is renting the property, the new property owner may either give the tenant a new lease or rental agreement, or provide the tenant with a 90-day eviction notice. The bill requires the notice to advise a tenant who has a lease that the new property owner is required to honor the lease unless the new owner will occupy the property as a primary residence or under other limited circumstances. The bill requires the Department of Consumer Affairs to make translations of the notice available, as described above. The bill provides that these changes to the notice would become operative on March 1, 2013, or 60 days following posting of a dated notice incorporating those amendments on the Department of Consumer Affairs Internet Web site, whichever date is later. The bill extends the operation of these provisions until Dec. 31, 2019. (2) Existing law provides that, in an unlawful detainer action, if an owner or owner's agent has obtained service of a prejudgment claim of right to possession, as specified, no occupant of the premises, whether or not that occupant is named in the judgment for possession, may object to the enforcement of the judgment, as specified. This bill provides that in any action for unlawful detainer resulting from a foreclosure sale of a rental housing unit pursuant to specified provisions, the above provisions regarding objection to the enforcement of a judgment do not limit the right of a tenant or subtenant to file a prejudgment claim of right of possession or to object to enforcement of a judgment for possession, regardless of whether the tenant or subtenant was served with a prejudgment claim of right to possession, as specified. (3) Existing law, until Jan. 1, 2013, requires a tenant or subtenant in possession of a rental housing unit at the time that property is sold in foreclosure to be provided 60 days' written notice to quit before the tenant or subtenant may be removed from the property, as specified. This bill instead requires a tenant or subtenant in possession of a rental housing unit under a month-to-month lease at the time that property is sold in foreclosure to be provided 90 days' written notice to quit before the tenant or subtenant may be removed from the property. The bill provides tenants or subtenants holding possession of a rental housing unit under a fixed-term residential lease entered into before transfer of title at the foreclosure sale the right to possession until the end of the lease term, except in specified circumstances. The bill also extend the operation of these provisions until Dec. 31, 2019.
S.B. 2
Returned to secretary of Senate pursuant to Joint Rule 56 1/31/12
Existing law, until Jan. 1, 2013, prohibits any person who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform residential mortgage loan modifications or forbearance for a fee paid by the borrower, from demanding or receiving any preperformance compensation, requiring collateral to secure final payment, or taking power of attorney from the borrower, and makes a violation of those provisions a misdemeanor. Existing law also requires those persons, when providing services for mortgage loan modifications or forbearance, to provide a 14-point bold type statement to the borrower regarding the borrower's right to contact his or her lender directly rather than using a third party to arrange for those services, and makes a violation of those provisions a misdemeanor. This bill extends those provisions until Jan. 1, 2015, and to persons who facilitate or attempt to facilitate mortgage loan modifications or forbearance. The bill further extends those prohibitions to persons who for a fee negotiate, attempt to negotiate, arrange, attempt to arrange, facilitate, attempt to facilitate, or otherwise offer to accomplish the sale of a residential dwelling for less than the remaining amount of indebtedness due to a mortgagor, mortgagors, trustor, or trustors at the time of sale. The bill makes conforming changes to the 14-point bold type statement that is required to be provided to a borrower, as specified.
S.B. 412
Returned to secretary of Senate pursuant to Joint Rule 56 1/31/12
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
Returned to secretary of Senate pursuant to Joint Rule 56 1/31/12
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 be postponed, as described above, for any period of time not to 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. 825
Signed by governor 8/28/12, Chapter 210
Existing law, until Jan. 1, 2013, requires that any notice to quit regarding a housing unit served within one year after a foreclosure sale include a separate cover sheet that contains an additional notice to renters. Existing law sets forth the content of this notice, which provides the tenant with specified information regarding tenants' rights. Existing law provides that, under certain circumstances, the cover sheet need not be served, as specified. The bill extends the operation of these provisions until Dec. 31, 2019.
S.B. 900
Signed by governor 7/11/12, Chapter 87
(1) Existing law, until Jan. 1, 2013, requires a mortgagee, trustee, beneficiary, or authorized agent to contact the borrower prior to filing a notice of default to explore options for the borrower to avoid foreclosure, as specified. Existing law requires a notice of default or, in certain circumstances, a notice of sale, to include a declaration stating that the mortgagee, trustee, beneficiary, or authorized agent has contacted the borrower, has tried with due diligence to contact the borrower, or that no contact was required for a specified reason. This bill adds mortgage servicers, as defined, to these provisions and extends the operation of these provisions indefinitely, except that it deletes the requirement with respect to a notice of sale. The bill, until Jan. 1, 2018, additionally requires the borrower, as defined, to be provided with specified information in writing prior to recordation of a notice of default and, in certain circumstances, within five business days after recordation. The bill prohibits a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent from recording a notice of default or, until Jan. 1, 2018, recording a notice of sale or conducting a trustee's sale while a complete first lien loan modification application is pending, under specified conditions. The bill, until Jan. 1, 2018, establishes additional procedures to be followed regarding a first lien loan modification application, the denial of an application, and a borrower's right to appeal a denial. (2) Existing law imposes various requirements that must be satisfied prior to exercising a power of sale under a mortgage or deed of trust, including, among other things, recording a notice of default and a notice of sale. The bill, until Jan. 1, 2018, requires a written notice to the borrower after the postponement of a foreclosure sale in order to advise the borrower of any new sale date and time, as specified. The bill provides that an entity shall not record a notice of default or otherwise initiate the foreclosure process unless it is the holder of the beneficial interest under the deed of trust, the original or substituted trustee, or the designated agent of the holder of the beneficial interest, as specified. The bill prohibits recordation of a notice of default or a notice of sale or the conduct of a trustee's sale if a foreclosure prevention alternative has been approved and certain conditions exist and, until Jan. 1, 2018, requires recordation of a rescission of those notices upon execution of a permanent foreclosure prevention alternative. The bill, until Jan. 1, 2018, prohibits the collection of application fees and the collection of late fees while a foreclosure prevention alternative is being considered, if certain criteria are met, and requires a subsequent mortgage servicer to honor any previously approved foreclosure prevention alternative. The bill authorizes a borrower to seek an injunction and damages for violations of certain of the provisions described above, except as specified. The bill authorizes the greater of treble actual damages or $50,000 in statutory damages if a violation of certain provisions is found to be intentional or reckless or resulted from willful misconduct, as specified. The bill authorizes the awarding of attorneys' fees for prevailing borrowers, as specified. Violations of these provisions by licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate would also be violations of those respective licensing laws. The bill provides that the requirements imposed on mortgage servicers, and mortgagees, trustees, beneficiaries, and authorized agents, described above are applicable only to mortgages or deeds of trust secured by residential real property not exceeding four dwelling units that is owner-occupied, as defined, and, until Jan. 1, 2018, only to those entities who conduct more than 175 foreclosure sales per year or annual reporting period, except as specified. The bill requires, upon request from a borrower who requests a foreclosure prevention alternative, a mortgage servicer who conducts more than 175 foreclosure sales per year or annual reporting period to establish a single point of contact and provide the borrower with one or more direct means of communication with the single point of contact. The bill specifies various responsibilities of the single point of contact. The bill defines single point of contact for these purposes. (3) Existing law prescribes documents that may be recorded or filed in court. This bill requires that a specified declaration, notice of default, notice of sale, deed of trust, assignment of a deed of trust, substitution of trustee, or declaration or affidavit filed in any court relative to a foreclosure proceeding or recorded by or on behalf of a mortgage servicer shall be accurate and complete and supported by competent and reliable evidence. The bill requires that, before recording or filing any of those documents, a mortgage servicer shall ensure that it has reviewed competent and reliable evidence to substantiate the borrower's default and the right to foreclose, including the borrower's loan status and loan information. The bill, until Jan. 1, 2018, provides that any mortgage servicer that engages in multiple and repeated violations of these requirements shall be liable for a civil penalty of up to $7,500 per mortgage or deed of trust, in an action brought by specified state and local government entities, and also authorizes administrative enforcement against licensees of the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate. The bill authorizes the Department of Corporations, the Department of Financial Institutions, and the Department of Real Estate to adopt regulations applicable to persons and entities under their respective jurisdictions for purposes of the provisions described above. The bill provides that a violation of those regulations would be enforceable only by the regulating agency. (4) The bill states findings and declarations of the Legislature in relation to foreclosures in the state generally, and states the purposes of the bill.
S.B. 980
Signed by governor 9/25/12, Chapter 563
Existing law, until Jan. 1, 2013, prohibits any person who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform residential mortgage loan modifications for mortgages and deeds of trust secured by real property containing four or fewer dwelling units, or other forms of mortgage loan forbearance for a fee paid by the borrower, from demanding or receiving any preperformance compensation, requiring collateral to secure payment, or taking a power of attorney from the borrower. Existing law makes the violation of those provisions a crime and, with respect to an attorney, cause for imposition of discipline. This bill extends the operation of those provisions until Jan. 1, 2017.
S.B. 1004
Passed Senate 3/22/12
Makes appropriations for support of state government for the 2012-13 fiscal year; includes appropriations from the National Mortgage Settlement.
S.B. 1006
Signed by governor 6/27/12, Chapter 32
Existing law, until Jan. 1, 2013, requires a mortgagee, trustee, beneficiary, or authorized agent to comply with certain procedures in dealing with a borrower who is in default prior to filing a notice of default and to explore options for the borrower to avoid foreclosure, as specified. Existing law provides that a violation of these provisions would result in specified civil penalties, including penalties for unfair business practices. Existing law provides that civil penalties collected for unfair business practice violations brought by the attorney general are deposited in the Unfair Competition Law Fund within the General Fund. This bill establishes the National Mortgage Special Deposit Fund in the state treasury as a continuously appropriated fund and requires certain direct payments made to the state under the National Mortgage Settlement to be deposited in the fund for allocation by the director of Finance, as specified. This bill further authorizes the director of Finance to allocate moneys from the fund to offset General Fund expenditures during the 2011-12, 2012-13, and 2013-14 fiscal years for purposes consistent with the National Mortgage Settlement. The bill also requires that civil penalties collected under the National Mortgage Settlement be deposited into the Unfair Competition Fund, and be continuously appropriated to the Department of Justice to offset the General Fund costs incurred by the department, thereby also making an appropriation.
S.B. 1035
Passed Senate 3/22/12
Amends the Budget Act of 2012 by revising items of appropriation, loans, and transfers of money specified that the act; includes appropriations from the National Mortgage Settlement.
S.B. 1069
Signed by governor 7/9/12, Chapter 64
Existing law provides that no deficiency judgment shall lie following a judicial foreclosure with respect to, among other things, a deed of trust or mortgage given to the vendor to secure payment of the balance of the purchase price of real property, or under a deed of trust or mortgage on a dwelling to secure repayment of a purchase money loan which was in fact used to pay all or part of the purchase price of that dwelling. This bill additionally provides that no deficiency judgment shall lie in any event on any loan, refinance, or other credit transaction that is used to refinance a purchase money loan, as defined, or subsequent refinances of a purchase money loan, except to the extent that the lender or creditor advances new principal which is not applied to any obligation owed or to be owed under the purchase money loan, or to fees, costs, or related expenses of the refinance. The bill provides, for purposes of these provisions, that any payment of principal for a refinanced purchase money loan would be deemed to be applied first to the principal balance of the purchase money loan, and then to the remaining principal balance, as specified. The bill's provisions applies to a loan, refinance, or other credit transaction used to refinance a purchase money loan which is executed on or after Jan. 1, 2013.
S.B. 1191
Signed by governor 9/25/12, Chapter 566
This bill, until Jan. 1, 2018, requires every landlord who offers for rent a single-family dwelling, or a multifamily dwelling not exceeding four units, and who has received a notice of default that has not been rescinded with respect to a mortgage or deed of trust secured by that property to disclose the notice of default in writing to any prospective tenant prior to executing a lease agreement for the property. The bill provides that a violation of those provisions allows the tenant to void the lease and entitle the tenant to recovery of one month's rent or twice the amount of actual damages from the landlord, and all prepaid rent, if the tenant voids the lease and vacates the property in addition to any other remedies that are available. The bill also provides that if the tenant elects not to void the lease and the foreclosure sale has not yet occurred, the tenant may deduct a total amount equal to one month's rent from future rent obligations owed the landlord who received the notice of default. The bill specifies the content of the written disclosure notice, and requires the notice to be provided in English and other languages, as specified. The bill exempts a property manager from liability for failing to provide the written disclosure notice unless the landlord notified the property manager of the notice of default and directed him or her in writing to deliver the written disclosure.
S.B. 1470
(1) Existing law, until Jan. 1, 2013, requires a mortgagee, trustee, beneficiary, or authorized agent to contact the borrower prior to filing a notice of default to explore options for the borrower to avoid foreclosure, as specified. Existing law requires a notice of default to include a declaration stating that the trustee, beneficiary, or authorized agent has contacted the borrower, or has tried with due diligence to contact the borrower, or that no contact was required for a specified reason. This bill additionally requires the borrower to be provided, if applicable, with a deadline for the borrower to submit an initial application for a loan modification. The bill requires the declaration to also state that the borrower was not a service member or dependent of a service member entitled to benefits under the federal Servicemembers Civil Relief Act, that the mortgagee, trustee, beneficiary, or authorized agent has possession of the note and mortgage, or deed of trust, and other specified documents that evidence the right to foreclose, and has attached copies thereof to the declaration, as specified, or a separate declaration containing specified information, if the above described documents cannot be located. The bill prescribes procedures and notices that must be sent by the mortgagee, trustee, beneficiary, or authorized agent if the notice of default was filed prior to January 1, 2013, and a notice of rescission was not subsequently recorded. The bill prohibits recording a notice of default unless a specified written notice has been sent at least 14 days before a notice of default is recorded. The bill prohibits a notice of default from being recorded while a loan modification application is pending, under specified conditions, and establishes additional procedures to be followed regarding the loan modification application before a notice of default could be recorded. (2) Existing law imposes various requirements that must be satisfied prior to exercising a power of sale under a mortgage or deed of trust, including, among other things, recording a notice of sale. This bill imposes additional requirements pertaining to applications for loan modifications that must be satisfied prior to recording a notice of sale in order to exercise a power of sale. The bill requires a written notice to the borrower after the postponement of a foreclosure sale in order to advise the borrower of any new sale date, time, and location when the new sale date is at least 10 calendar days after the date of postponement, as specified. The bill establishes procedures for a loan modification application process to be used after a notice of sale has been recorded. The bill prohibits a notice of sale from being recorded under certain conditions, including, among others, if the borrower is in compliance with a loan modification plan, forbearance, or loan repayment plan, as specified, or if a short sale or deed-in-lieu of foreclosure has been approved, as specified. The bill requires mortgagees, trustees, beneficiaries, or authorized agents to track and record specified data pertaining to loan modification agreements. The bill prohibits the collection of late fees while a loan modification or short sale is being considered, if certain criteria are met. The bill authorizes a borrower to seek an injunction of a pending trustee's sale if a notice of sale has been recorded and the borrower reasonably believes that the mortgagee, trustee, beneficiary, or authorized agent failed to comply with specified requirements. The bill authorizes the greater of actual damages or $10,000 in statutory damages if there is a failure to comply with specified requirements by the mortgagee, trustee, beneficiary, or authorized agent and the property is sold at a foreclosure sale. The bill authorizes the greater of treble damages or $50,000 in statutory damages if the failure to comply is found to be intentional or reckless or resulted from willful misconduct, as specified. The bill establishes the Office of Homeowner Protection, which would have responsibility, among other things, for responding to inquiries and complaints from individuals regarding foreclosures and other procedures and requirements as described above, attempting to seek compliance by mortgagees, trustees, beneficiaries, or authorized agents regarding foreclosures and other procedures and requirements as described above, and maintaining an Internet Web site that is capable of receiving inquiries and complaints from individuals and that provides information to the public about publicly available resources intended to help individuals avoid foreclosure. The bill expresses the intent of the Legislature that the office be funded by payments made available to the attorney general via the Special Deposit Fund, created pursuant to specified federal settlement agreements.
S.B. 1471
(1) Existing law prescribes foreclosure procedures, including, among other things, procedures for recording a notice of default, recording a notice of sale, and conducting a foreclosure sale. This bill defines a mortgage servicer, and, commencing July 1, 2013, requires a mortgage servicer to establish a single point of contact when a borrower on a residential mortgage or deed of trust is 60 or more days delinquent, has had a notice of default recorded, or is seeking a loan modification or other loss mitigation, as specified. The bill imposes various obligations on the single point of contact in connection with loan modification or other loss mitigation options. (2) Existing law imposes various requirements that must be satisfied prior to exercising a power of sale under a mortgage or deed of trust, including, among other things, recording a notice of default. This bill prohibits an entity from recording a notice of default or otherwise initiating foreclosure procedures unless the entity is the actual holder of the beneficial interest under the deed of trust, and prohibits an entity acting as agent from doing so without specific direction from the actual owner of the beneficial interest under the deed of trust. The bill authorizes a borrower to seek an injunction of a pending trustee's sale, if a notice of sale has been recorded and the borrower reasonably believes that the mortgagee, trustee, beneficiary, or authorized agent failed to comply with specified requirements. The bill authorizes the greater of actual damages or $10,000 in statutory damages if there is a failure to comply with specified requirements by the mortgagee, trustee, beneficiary, or authorized agent and the property is sold at a foreclosure sale. The bill authorizes the greater of treble damages or $50,000 in statutory damages if the failure to comply is found to be intentional or reckless or resulted from willful misconduct, as specified. (3) Existing law authorizes the recording by the county recorder of various documents. This bill provides that a document that contains factual assertions that are not accurate, are incomplete, or are unsupported by competent, reliable evidence, or a document that has not been reviewed by its signer to substantiate the factual assertions contained in the document is a robosigned document. The bill provides that any entity that records a robosigned document, or files a robosigned document in a court relative to a foreclosure proceeding is liable for a civil penalty of $10,000 for each robosigned document. The bill authorizes specified governmental entities to enforce the civil penalty, and authorizes the Department of Real Estate, the Department of Corporations, and the Department of Financial Institutions to enforce the civil penalty provisions against their respective licensees. (4) Existing law provides that where the power to sell real property is given to a mortgagee or other encumbrancer, in an instrument intended to secure the payment of money, the power is part of the security and vests with any person who by assignment becomes entitled to payment of the money. This bill expands these provisions to include a power to sell real property given to a trustee or a beneficiary of a deed of trust in an instrument intended to secure the payment of money. (5) The bill repeals duplicate provisions of law.
S.B. 1472
Passed Senate 5/3/12
(1) Existing law, until Jan. 1, 2013, requires a legal owner to maintain vacant residential property purchased at a foreclosure sale or acquired by that owner through foreclosure under a mortgage or deed of trust. Existing law, until Jan. 1, 2013, authorizes a governmental entity to impose civil fines and penalties for failure to maintain that property of up to $1,000 per day for a violation. Existing law, until Jan. 1, 2013, requires a governmental entity that seeks to impose those fines and penalties to give notice of the claimed violation and an opportunity to correct the violation at least 14 days prior to imposing the fines and penalties, and to allow a hearing for contesting those fines and penalties. This bill deleted the repeal clause for these provisions and thus extends the operation of these provisions indefinitely. (2) The State Housing Law requires the housing or building department or, if there is no building department, the health department, of every city, county, or city and county, or a specified environmental agency, to enforce within its jurisdiction all of the State Housing Law, the building standards published in the State Building Standards Code, and other specified rules and regulations. If there is a violation of these provisions or any order or notice that gives a reasonable time to correct that violation, or if a nuisance exists, an enforcement agency is required, after 30 days' notice to abate the nuisance, to institute any appropriate action or proceeding to prevent, restrain, correct, or abate the violation or nuisance. This bill prohibits an enforcement agency from commencing any action or proceeding until at least 60 days after a person takes title to the property, unless a shorter period of time is deemed necessary by the enforcement agency in its sole discretion, as specified, if the person has purchased and is in the process of diligently abating any violation at a residential property that had been foreclosed on or after January 1, 2008. This bill requires any entity that releases a lien securing a deed of trust or mortgage on a property for which a notice of pendency of action, as defined, has been recorded against the property, as specified, to notify, in writing, the enforcement agency that issued the order or notice within 30 days of releasing the lien. (3) Existing law authorizes, among other things, the enforcement agency to seek and the court to order imposition of specified penalties or the enforcement agency, tenant, or tenant association or organization to seek, and the court to order, the appointment of a receiver for a substandard building, if the owner of the property fails to comply within a reasonable time with the terms of an order or notice. This bill authorizes a court to require the owner of the property to pay all unrecovered costs associated with the receivership in addition to any other remedy authorized by law.
S.B. 1473
Passed Senate 5/31/12
(1) Existing law requires a notice of sale to be posted before any power of sale can be exercised under the power of sale contained in any deed of trust or mortgage. Existing law, until Jan. 1, 2013, requires a resident of property upon which a notice of sale has been posted to be provided a specified notice advising the resident that, among other things, if the person is renting the property, the new property owner may either give the tenant a new lease or rental agreement, or provide the tenant with a 60-day eviction notice, and that other laws may prohibit the eviction or provide the tenant with a longer notice before eviction. Existing law makes it an infraction to tear down the notice within 72 hours of posting. Existing law requires a state government entity to make translations of the notice available in five specified languages, for use by a mortgagee, trustee, beneficiary, or authorized agent, in order to satisfy the notice requirements. This bill revises certain portions of the notice to instead require a resident of property upon which a notice of sale has been posted to be advised that if the person is renting the property, the new property owner may either give the tenant a new lease or rental agreement, or provide the tenant with a 90-day eviction notice. The bill requires the notice to advise a tenant who has a lease that the new property owner is required to honor the lease unless the new owner will occupy the property as a primary residence or under other limited circumstances. The bill requires the Department of Consumer Affairs to make translations of the notice available, as described above. The bill provides that these changes to the notice would become operative on March 1, 2013, or 60 days following the issuance of an amended notice translation by the Department of Consumer Affairs Internet Web site, whichever date is later. The bill extends the operation of these provisions until Dec. 31, 2019. (2) Existing law provides that, in an unlawful detainer action, if an owner or owner's agent has obtained service of a prejudgment claim of right to possession, as specified, no occupant of the premises, whether or not that occupant is named in the judgment for possession, may object to the enforcement of the judgment, as specified. This bill provides that in any action for unlawful detainer resulting from a foreclosure sale of a rental housing unit pursuant to specified provisions, the above provisions regarding objection to the enforcement of a judgment do not limit the right of a tenant or subtenant to file a prejudgment claim of right of possession or to object to enforcement of a judgment for possession, regardless of whether the tenant or subtenant was served with a prejudgment claim of right to possession, as specified. (3) Existing law, until January 1, 2013, requires a tenant or subtenant in possession of a rental housing unit at the time that property is sold in foreclosure to be provided 60 days' written notice to quit before the tenant or subtenant may be removed from the property, as specified. This bill instead requires a tenant or subtenant in possession of a rental housing unit under a month-to-month lease or periodic tenancy at the time that property is sold in foreclosure to be provided 90 days' written notice to quit before the tenant or subtenant may be removed from the property. The bill provides tenants or subtenants holding possession of a rental housing unit under a fixed-term residential lease entered into before transfer of title at the foreclosure sale the right to possession until the end of the lease term, except in specified circumstances. The bill also extends the operation of these provisions until Dec. 31, 2019.
Colorado
H.B. 1156
Postponed indefinitely 3/13/12
Current law allows a "holder of an evidence of debt" (holder), generally, a bank or other financial institution, to foreclose on real property under a deed of trust even if the holder's interest is based on an assignment from the original lender and the assignment or other intermediate documents are not produced, simply by providing a statement from the holder's attorney that the holder's interest in the property is valid. Sections 1 and 3 of the bill remove this provision and otherwise tighten the rules for documentation of the holder's interest that must be filed with the public trustee before a foreclosure sale is authorized. Section 2 amends provisions governing the court order authorizing sale by a public trustee (rule 120 order, referring to C.R.C.P. 120) to place the burden of proof on the holder in all cases to demonstrate that the holder does in fact have a valid assignment or other basis for its assertion that it is entitled to foreclose on the property. Section 2 also explicitly states that the rule 120 order is not a final judgment adjudicating all claims of rights and interests in the property, as a judgment under rule 105 (a "quiet title judgment") would be. Section 4 suspends any eviction proceeding if the rule 120 order has been challenged, until the challenge is resolved.
S.B. 30
Signed by governor 4/12/12, Chapter 96
Concerns administrative matters related to a foreclosure sale; relates to an electronic payment to an account of a public trustee, evidence of debt, cure statements, Rule 120 hearing notices, confirmation deed recording fees, bankruptcy proceedings, confirmation deeds and deeds of trust, excess proceeds from a foreclosure sale, assignment of a lien, the execution and recording of a confirmation deed, and the release of a deed of trust recorded in the wrong county.
S.B. 71
The bill requires the holder of an evidence of debt (typically a mortgage lender), before initiating or completing the process of foreclosing on residential real property containing four or fewer dwelling units, to make and fully document its efforts to: contact the borrower directly; negotiate in good faith with the borrower in an effort to effectuate a cure for default rather than move directly into the foreclosure process; fully assess the eligibility of the borrower, the property, and the loan for any available public or private loan modification programs or other alternatives to foreclosure; communicate with, and inform, the borrower about impending deadlines and the consequences of missing them at every major step of the foreclosure process; carry the burden of proof in court proceedings regarding the holder's compliance with procedural as well as substantive requirements before obtaining an order authorizing sale of the property under rule 120 in the Colorado rules of civil procedure; and abide by the terms of any offer of modification it makes, if the borrower signs and returns documents containing those terms.
Connecticut
H.B. 6001, Special Session
Signed by governor 6/15/12, Public Act 12-1
The act makes it easier for applicants to qualify for the state’s emergency mortgage assistance program (EMAP), which provides short-term loans to homeowners experiencing financial hardships beyond their control. The loans help them pay their mortgages. The program covers one-to-four-family owner-occupied homes, including single-family units in a condominium or planned unit development. The act eliminates pensions and retirement funds valued at $100,000 or less from the list of assets that an EMAP applicant must disclose to CHFA. The applicant must still report all household income, liabilities, and assets, including: 1. the sum of the household's savings and checking accounts; 2. market value of stocks, bonds, and securities; 3. other capital investments; 4. personal property and equity in real property, including the subject mortgage property; 5. pension and retirement funds valued at over $100,000; and 6. lump-sum additions to family assets. The act also allows applicants to include delinquent taxes; insurance; and condominium or common interest community charges, assessments, and fees, whether or not they are paid into escrow or impound accounts as reserves, in their applications as proof of EMAP eligibility. The act eliminates a requirement for qualifying debts to be contractually delinquent. Thus, an applicant may qualify for EMAP whether or not there is a contractual obligation to pay an otherwise allowable debt. The act also makes mortgages insured by the Federal Housing Administration (FHA) eligible for EMAP. The act specifies that CHFA may consider the length of time the mortgagor has lived in his or her home when determining the mortgagor's ability to repay EMAP within a reasonable time. Existing law allows CHFA to consider the mortgage's structure, its repayment schedules, and any other relevant factors or criteria it deems appropriate. The act also allows EMAP recipients to file defenses, counterclaims, or set-offs against foreclosure on the assisted mortgage. Under existing law, CHFA can make EMAP monthly payments to a mortgagee either consecutively or nonconsecutively for up to 60 months. The act specifies that the calculation of the maximum 60 months of EMAP payments begins with the first payment.
S.B. 159
Passed Senate 4/25/12
Repeals the provision that permits the mortgage to follow the note regardless of whether the holder of the note has legal title.
S.B. 360
Passed Senate 5/4/12
This bill authorizes up to $60 million in bond funds to finance the Connecticut Housing Finance Authority's (CHFA) Emergency Mortgage Assistance Program (EMAP). It also (1) makes it easier for mortgagors to qualify for the program; (2) allows EMAP recipients to file defenses, counterclaims, or set-offs against foreclosure on the assisted mortgage; and (3) specifies that the calculation of the maximum 60 months of EMAP payments begins with the first payment. The bill requires a business to inform the attorney general, in addition to the affected state resident, when there is a security breach involving the resident's computerized personal information. It makes failure to do so a violation of the Connecticut Unfair Trade Practices Act (CUTPA). Lastly, the bill makes information on foreclosure mediation widely available.
Delaware
H.B. 231
Signed by governor 7/5/12, Chapter 295
This bill makes it clear that the Superior Court can allow for non-profit legal service providers to perform the function of the HUD-certified housing counselors in the mediation process. Legal Services Corporation of Delaware has been authorized to serve in that role by Superior Court Administrative Directive No. 2011-2 and this bill allows the Superior Court to preserve that role.
S.B. 260
Signed by governor 7/1/12, Chapter 290
Makes appropriations for the expense of the state government for the fiscal year ending in 2013; specifies certain procedures, conditions, and limitations for the expenditure of such funds to include appropriations from the National Mortgage Settlement.
District of Columbia
B19-674
Amends on an emergency basis an act to establish a code of law for the District of Columbia to provide borrowers 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; establishes 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; provides that the commissioner can set all applicable fees through rulemaking; to provide that mediation shall conclude within 180 days; clarifies that the District of Columbia Procurement Practices Act does not apply to contracts entered into by the mediation administrator for mediation services; provides that nothing in this Act shall be construed to create any new administrative, judicial or other review not otherwise available under existing laws; provides new definitions for the term residential mortgage and mediation services; and amends the 21st Century Financial Modernization Act of 2000 to provide that judicial review of any final order or action of the Department of Insurance, Securities and Banking shall be in the Superior Court of the District of Columbia unless D.C. Official Code §2-510 applies.
B19-675
Amends on a temporary basis an act to establish a code of law for the District of Columbia to provide borrowers 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; establishes 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; to provide that the commissioner can set all applicable fees through rulemaking; provides that mediation shall conclude within 180 days; clarifies that the District of Columbia Procurement Practices Act does not apply to contracts entered into by the mediation administrator for mediation services; provides that nothing in this Act shall be construed to create any new administrative, judicial or other review not otherwise available under existing laws; provides new definitions for the term residential mortgage and mediation services; and amends the 21st Century Financial Modernization Act of 2000 to provide that judicial review of any final order or action of the Department of Insurance, Securities and Banking shall be in the Superior Court of the District of Columbia unless D.C. Official Code §2-510 applies.
B19-676
Amends an act to establish a code of law for the District of Columbia to provide borrowers 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; establishes 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; provides that the commissioner can set all applicable sees through rulemaking; provides that mediation shall conclude within 180 days; clarifies that the District of Columbia Procurement Practices Act does not apply to contracts entered into by the mediation administrator for mediation services; provides that nothing in this Act shall be construed to create any new administrative, judicial or other review not otherwise available under existing laws ; provides new definitions for the term residential mortgage and mediation services; and amends the 21st Century Financial Modernization Act of 2000 to provide that judicial review of any final order or action of the Department of Insurance, Securities and Banking shall be in the Superior Court of the District of Columbia unless D.C. Official Code §2-510 applies.
B19-785
Signed by mayor 6/15/12, Act 378 (expires 9/13/12)
Amends, on an emergency basis, an 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, to provide 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, to provide for a new definition for residential mortgage, and to change the Foreclosure Mediation Fund provisions to allow mortgage-related or foreclosure-related settlement funds to be transferred into the fund and allow those funds to be used for specified mortgage-related or foreclosure-related matters.
B19-786
Passed Congressional review 10/9/12, Act A19-0397
Amends, on a temporary basis, an 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, to provide 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, to provide for a new definition for residential mortgage, and to change the Foreclosure Mediation Fund provisions to allow mortgage-related or foreclosure-related settlement funds to be transferred into the fund and allow those funds to be used for specified mortgage-related or foreclosure-related matters.
B19-914
Signed by mayor 10/26/12, Act A19-0493
Amends, on an emergency basis, an 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, to provide 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, to provide for a new definition for residential mortgage, and to change the Foreclosure Mediation Fund provisions to allow mortgage-related or foreclosure-related settlement funds to be transferred into the fund and allow those funds to be used for specified mortgage-related or foreclosure-related matters.
PR19-579
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; establishes 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; clarifies that the District of Columbia Procurement Practices Act does not apply to contracts entered into by the mediation administrator for mediation services; provides that nothing in this Act shall be construed to create any new administrative, judicial or other review not otherwise available under laws; provides new definitions for the term residential mortgage and mediation services; and amends the 21st Century Financial Modernization Act of 2000 to provide that judicial review of any final order or action of the Department of Insurance, Securities and Banking shall be in the Superior Court of the District of Columbia unless D.C. Official Code §2-510 applies.
PR19-709
Adopted 6/5/12, R19-0450
Declares the existence of an emergency with respect to the need to amend an act to establish a code of law for the District of Columbia to provide a borrower 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; to provide that a foreclosure sale of a property secured by a residential mortgage shall be void if a lender files a notice of intention to foreclose on a residential mortgage without a mediation certificate; to provide for a new definition of residential mortgage; and to amend the Foreclosure Mediation Fund to allow mortgage-related or foreclosure-related settlement funds to be transferred into the fund and allow those funds to be used for specified mortgage-related or foreclosure-related matters.
PR19-922
Adopted 10/2/12, Resolution R19-0594
Declares the existence of an emergency, due to Congressional review, with respect to the need to amend an act to establish a code of law for the District of Columbia to provide a borrower 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; to provide that a foreclosure sale of a property secured by a residential mortgage shall be void if a lender files a notice of intention to foreclose on a residential mortgage without a mediation certificate; to provide for a new definition of residential mortgage; and to amend the Foreclosure Mediation Fund to allow mortgage-related or foreclosure-related settlement funds to be transferred into the fund and allow those funds to be used for specified mortgage-related or foreclosure-related matters.
Florida
H.B. 65
Withdrawn prior to introduction 1/6/12
S.B. 496
Died in committee 3/9/12
Creates the "Foreclosure Debt Claims Act"; authorizes creation and administration of deficiency judgment reimbursement program by Florida Housing Finance Corporation contingent upon occurrence of certain conditions precedent; provides for future termination of program; authorizes continuation of program after depletion of funds; provides procedures and eligibility requirements for homeowners & financial institutions to file specified monetary claims.
H.B. 145
Died in committee 3/9/12
S.B. 628
Died in committee 3/9/12
Cites this act as the "Florida Mortgage Collection Fairness Act"; prohibits certain acts by mortgage collection firms; provides that violations are deceptive and unfair trade practices; provides penalties and remedies; provides for the award of attorney fees and costs under certain circumstances.
H.B. 149
Died in committee 3/9/12
S.B. 230
Died in committee 3/9/12
Provides that legal publication, advertisement, or notice of foreclosure action may be placed on publicly accessible Internet website of clerk of court in lieu of publication in any other form of media; provides criteria for publicly accessible Internet website; provides for user access to website; provides for access by clerks of court and chief judges; provides requirements for website provider; provides posting requirements; authorizes clerk of court to contract with publicly accessible Internet website provider; provides for terms and revenue sharing in contract; provides for notice of foreclosure action to be posted on publicly accessible Internet website.
H.B. 213
Passed House 2/29/12
Reduces limitations period for action to enforce deficiency judgment subsequent to foreclosure; specifies contents of complaint seeking to foreclose on certain types of residential properties with respect to authority of plaintiff to foreclose on note and location of note; provides exception; limits amount of deficiency judgment; expands class of persons authorized to move for expedited foreclosure; provides requirements and procedures for order directed to defendants to show cause why final judgment of foreclosure should not be entered; provides that certain failures by defendant may have specified legal consequences; requires court to enter final judgment of foreclosure and order foreclosure sale; limits restriction requests to order mortgagor defendant to make payments or to vacate premises during foreclosure to all but owner-occupied residential property; provides presumption regarding owner-occupied residential property; establishes expedited foreclosure proceedings for abandoned residential real property; provides application of act.
H.B. 713
Died in committee 3/9/12
S.B. 706
Withdrawn from further consideration 1/24/12
Prohibits share of common expenses of unit in condominium which is in foreclosure from being assessed against other units in condominium.
H.B. 1149
Died in committee 3/9/12
Reduces limitations period for commencing action to enforce claim of deficiency judgment pursuant to foreclosure action; provides that entry of deficiency judgment must be commenced within specified period after date of court foreclosure sale or short sale; bars attempts to collect deficiency judgment if not commenced within such period; limits amount of deficiency judgment in foreclosure action; authorizes reduction of amount of deficiency judgment by insurance setoff; authorizes lienholders and condominium or homeowners' associations to request order to show cause for entry of final judgment of foreclosure; provides requirements and procedures with respect to order directed to defendants to show cause why final judgment of foreclosure should not be entered; provides that failures by defendant to make certain filings or to make certain appearances may have specified legal consequences; requires court to enter final judgment of foreclosure and order foreclosure sale; establishes expedited foreclosure proceedings for abandoned residential real property and procedures and requirements with respect thereto; provides procedures and requirements for actions to foreclose on mortgages on actual or potential homestead property.
H.B. 1453
Died in committee 3/9/12
Provides for automatic stay of foreclosure proceedings concerning owner-occupied residential property upon submission of proof owner is currently receiving unemployment compensation benefits; provides for remedies in foreclosure proceeding concerning residential property upon finding holder of mortgage or corporation hired to service or collect payments on mortgage has engaged in fraudulent or bad faith act in relation to mortgage; prohibits deficiency judgments following foreclosures of homestead property.
H.B. 1457
Died in committee 3/9/12
S.B. 636
Died in committee 3/9/12
Prohibits entities providing loan modification services from encouraging borrowers to cease making their mortgage payments; provides criminal penalty and fine for violations of loan modification prohibitions.
H.B. 5403
Signed by governor 4/20/12, Chapter 138
Redirects revenue from filing fees for certain civil actions in circuit court relating to real property or mortgage foreclosure from State Courts Revenue Trust Fund to General Revenue Fund; revises distribution of portion of filing fees received for certain civil actions in circuit court relating to real property or mortgage foreclosure.
S.B. 586
Died in committee 3/9/12
Provides that the purchaser of a foreclosed residential dwelling unit may not take possession until a specified period after notifying a tenant of the intent to take possession; provides that the tenant may terminate a lease upon receiving the notice; provides requirements for landlords following commencement of a foreclosure action; requires that the landlord hold the security deposit and advance rent in an interest-earning account in specified circumstances; requires that the landlord disclose in writing to a prospective tenant a foreclosure action and its possible effects on the tenancy; provides an exception to liability for failure to provide notice; requires the purchaser in a foreclosure sale to credit the tenant for security deposits and advance rents under certain conditions.
S.B. 970
Died in committee 3/9/12
Cites this act as the “Florida Property Preservation Act"; authorizes a financial institution or lender that institutes a foreclosure action to file a motion requesting that the circuit court issue a certificate of abandonment and preservation of property; requires that the sheriff or deputy sheriff conduct an inspection of the property to determine if it appears to be abandoned; requires that the sheriff or deputy sheriff post a notice on the property if it appears to be abandoned; authorizes the financial institution or lender instituting the mortgage foreclosure proceeding to perform certain actions in order to preserve the property.
S.B. 1266
Died in committee 3/9/12
Deletes a restriction on a mortgagee to request a court to order a mortgagor defendant to make payments or to vacate the premises during an action to foreclose on residential real estate; making technical and grammatical changes.
S.B. 1612
Died in committee 3/9/12
Creates the Foreclosure and Eviction Prevention Trust Fund within the Department of Economic Opportunity as a depository for funds appropriated to provide payment assistance for housing accommodations for certain state residents who become unemployed.
S.B. 1672
Died in committee 3/9/12
Provides that a mortgage instrument recorded in the name of a nominee does not provide sufficient notice of the existence of a lien; provides that the use of the term “nominee” in a mortgage instrument does not provide sufficient notice of the actual economic ownership of interests in the real property; requires that an assignment of a mortgage be recorded upon each transfer of beneficial ownership of the mortgage before a foreclosure action may be initiated.
S.B. 1890
Died on calendar 3/9/12
Reduces the limitations period for commencing an action to enforce a claim of a deficiency judgment subsequent to a foreclosure action; specifies required contents of a complaint seeking to foreclose on certain types of residential properties with respect to the authority of the plaintiff to foreclose on the note and the location of the note; expands the class of persons authorized to move for expedited foreclosure; requires the court to enter a final judgment of foreclosure and order a foreclosure sale under certain circumstances.
Georgia
H.B. 110
Signed by governor 5/1/12, Act 644
Provides for vacant and foreclosed real property registries; provides for definitions; provides for required elements of a form for such registrations; provides for exemptions from registration; provides for maximum fees and penalties for registration and failure to register; provides for appellate rights.
H.B. 419
Passed House 2/24/12
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; provides for a method of payment; provides for a limitation.
H.B. 742
Signed by governor 5/7/12, Act 775
Makes and provides appropriations for the State Fiscal year beginning July 1, 2012, and ending June 30, 2013; includes appropriations from the National Mortgage Settlement.
H.B. 781
Provides that after Dec. 31, 2012, any document or instrument made for the purpose of securing the payment of money for real property shall be deemed to be a mortgage; provides that a court shall not enter a deficiency decree; provides that no law suit to recover deficiency shall be maintained.
H.B. 1042
Relates to the recording of foreclosure and deed under power documents, so as to amend the time in which a mortgage holder must file deeds under power after a foreclosure sale; provides for a cause of action for failure to file a deed under power after a foreclosure sale; provides for jurisdiction; provides for presumed damages and a maximum recovery amount.
H.B. 1047
Provides for a showing of a property's fair market value in order to obtain a judgment on a deed to secure debt or mortgage prior to a foreclosure and sale under power; provides for fair market value to be used as the opening bid in sales under power when a money judgment has been obtained prior to foreclosure.
S.B. 284
Signed by governor 5/2/12, Act 729
Amends Chapter 4 of Title 48 of the Official Code of Georgia Annotated, relating to tax sales, so as to provide for provisions governing the creation and operation of land banks on and after July 1, 2012; provides a short title and a statement of construction, intent, and scope; provides for legislative findings; defines certain terms; provides for the creation, existence, and board membership of land banks; provides for land bank powers, including those powers related to the acquisition and disposition of tax delinquent and other properties; provides for financing of land banks; provides for public meetings of land banks, for the adoption of rules and regulations to address potential conflicts of interest, and for the dissolution of land banks.
S.B. 333
Signed by governor 5/2/12, Act 735
Provides that notices of sales made on foreclosure under power of sale shall be provided to all debtors.
S.B. 479
Requires the purchaser in a condominium development or other property development at a foreclosure sale to take title subject to a lien in favor of the condominium or property owners' association.
Guam
not available
Hawaii
H.B. 1862
Clarifies the contents of a notice of intention of foreclosure by making a technical amendment.
H.B. 1863
Clarifies the public sale requirement for conducting a foreclosure sale by making a technical amendment.
H.B. 1875
Signed by governor 6/28/12, Act 182
Implements the 2011 recommendations of the mortgage foreclosure task force, and other best practices, to address various issues relating to the mortgage foreclosures law and related issues affecting homeowner association liens and the collection of unpaid assessments. Repeals the non-judicial foreclosure process under part I of chapter 667, HRS. Makes permanent the mortgage foreclosure dispute resolution program and the process for converting non-judicial foreclosures of residential property into judicial foreclosures.
H.B. 2018
Passed House 3/6/12
Repeals the provision automatically making all violations of the mortgage foreclosure law an unfair or deceptive act or practice. Following the expiration of the mortgage foreclosure dispute resolution program in 2014, specifies certain foreclosure violations as unfair or deceptive acts or practices, limits the types of violations that may void a title transfer of foreclosed property, and establishes a time limit for filing actions to void title transfers of foreclosed property.
H.B. 2019
Passed House 3/6/12
Prohibits deficiency judgments to recover the remaining balance on mortgage loans for certain residential property sold in a foreclosure action or short sale.
H.B. 2020
Repeals part I of chapter 667, HRS, relating to foreclosure by action or foreclosure by power of sale.
H.B. 2033
Prohibits mortgage collection firms from certain acts, such as knowingly breaching a bona fide mortgage modification agreement. Provides penalties.
H.B. 2103
Passed House 3/6/12
Directs the Department of Commerce and Consumer Affairs to conduct a comprehensive review of relevant state laws to develop legislation to establish the bank of the State of Hawaii. Appropriates funds to conduct the review. Directs the Hawaii housing and finance and development corporation to establish and operate an interim purchase program for distressed residential properties encumbered by problematic mortgages until the bank of the state of Hawaii is operational. Establishes minimum percentages of state funds that shall be deposited in the bank of the state of Hawaii.
H.B. 2375
Signed by governor 6/28/12, Act 183
Requires the office of consumer protection to educate consumers about fraudulent activities that may be committed against homeowners who face property foreclosures, liens, or encumbrances, as appropriate. Establishes criminal penalties and a mandatory fine for certain violations of the mortgage rescue fraud prevention act.
H.B. 2378
For mortgage foreclosures by judicial action, specifically prohibits evictions or ejections of persons in possession of mortgaged property used as a primary residence until the foreclosure action has been finally adjudicated.
H.B. 2622
Repeals the provision in the mortgage foreclosure law that makes a violation of the mortgage foreclosure law subject to the penalties provided under the state's unfair or deceptive act or practice laws.
H.B. 2708
S.B. 2657
Establishes an alternate power of sale process for condominium and planned community associations. Revises provisions on condominium liens for unpaid assessments and establishes similar provisions for planned community associations. Specifies the jurisdiction of the circuit courts over actions to foreclose association liens.
H.B. 2738
Encourages the use of the mortgage foreclosure dispute resolution process for nonjudicial foreclosures of residential property, by shortening the time period for completing the process.
S.B. 2428
Repeals part I of chapter 667, HRS, relating to foreclosure by action or foreclosure by power of sale.
S.B. 2429
To conference committee 4/17/12
Implements the 2011 recommendations of the mortgage foreclosure task force.
S.B. 2442
Establishes an alternate power of sale process for condominium and planned community associations. Revises provisions on condominium liens for unpaid assessments and establishes similar provisions for planned community associations. Specifies the jurisdiction of the circuit courts over actions to foreclose association liens.
S.C.R. 39
Directs the attorney general of the state of Hawaii to investigate cases where fraudulent transfers and assignments of mortgage loan documents are alleged.
S.R. 16
Directs the attorney general of the state of Hawaii to investigate cases where fraudulent transfers and assignments of mortgage loan documents are alleged.
Idaho
H.B. 624
Signed by governor 4/5/12, Chapter 326
Amends existing law relating to trust deeds to prohibit trustees from having a financial interest in a newspaper publishing certain notices and to prohibit trustees from profiting, directly or indirectly, based on requisite publication of notice of trustee's sale; provides that such conduct shall constitute a misdemeanor and provides penalties.
H.B. 703
Signed by governor 4/5/12, Chapter 338
Relates to the National Mortgage Settlement Agreement and appropriates and transfers $500,000 from the General Fund to the Consumer Protection Fund upon receipt of an estimated $13.3 million in settlement proceeds provided for in the March 12, 2012 National Mortgage Settlement Agreement and remitted to the General Fund; contingent upon receipt of those settlement proceeds, an additional $500,000 is appropriated from the Consumer Protection Fund to the attorney general to help distressed Idaho homeowners with assistance, counseling, and legal aid services.
Illinois
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. 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. 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. 4469
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. 4560
Amends the Common Interest Association Act. Provides that the purchaser of a unit of a common interest community, other than a mortgagee, must pay the common expenses for the unit, including attorneys' fees, that would have been due during the 12 months before a foreclosure judicial sale or the execution of a deed in lieu of foreclosure and if common expenses are paid at any time, the purchaser, other than the mortgagee, has no obligation to pay any common expenses that accrued before the purchaser acquired title. Amends the Condominium Property Act. Provides that the purchaser of a condominium unit at a judicial foreclosure sale, other than a mortgagee, or a purchaser who acquires title from a mortgagee following a judicial foreclosure sale or the execution of deed in lieu of foreclosure must pay the proportionate share of the unit's common expenses, including attorneys' fees, that would have been due during the 12 months before a judicial sale or execution of a deed in lieu of foreclosure (instead of must pay common expenses, without attorney's fees included, for the 6 months incurred immediately before the filing of an action to collect common expenses) and if the common expenses are paid, the purchaser, other than the mortgagee, has no obligation to pay any common expenses that accrued before the purchaser acquired title.
H.B. 5001
Amends provisions of the Code of Civil Procedure requiring a copy of a notice of foreclosure of residential real estate or a copy of a confirmation order after a confirmation of sale of residential real estate following a foreclosure to be sent by a party seeking foreclosure to the municipality or county where the mortgaged real estate is located and to the known insurers. Provides that if the municipality or county has not posted an address to which the notice of foreclosure or copy of a confirmation order must be sent, the notice of foreclosure or copy of a confirmation order must be sent to the chairperson of the county board or county clerk, mayor or city clerk, president of the board of trustees or village clerk, or president or town clerk (rather than sent in accordance with specified provisions of the Code). If the real estate is located in a city with a population of more than 2 million, also requires a notice of foreclosure or copy of a confirmation order to be sent to the city clerk, requires an affidavit attesting that the notice of foreclosure or copy of a confirmation order was sent, requires the city clerk to send a copy of a notice of foreclosure to the alderman for the ward in which the real estate is located, provides for dismissal of a complaint or counterclaim without prejudice if the requirements regarding a notice of foreclosure are not met, and adds notice requirements when a party refiles the complaint or counterclaim after a dismissal. Makes other changes.
H.B. 5019
Signed by governor 1/28/13, Public Act 97-1159
Amends the Code of Civil Procedure. Provides that certain provisions concerning the Making Home Affordable Program become inoperative on January 1, 2014 (instead of January 1, 2013) for all mortgage foreclosure actions filed after December 31, 2013 (instead of December 31, 2012) in which the mortgagor did not apply for assistance under the Making Home Affordable Program on or before December 31, 2013 (instead of December 31, 2012). Amends Public Act 97-849 by providing that sections of the Public Act concerning the High Risk Home Loan Act take effect on the effective date of the federal regulations implementing §§1431, 1432, and 1433 of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act (instead of January 1, 2013).
H.B. 5339
Amends the Code of Civil Procedure. 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 instituting the proceedings to take adequate steps to prevent frozen pipes and to take reasonable steps to secure the property and protect it against loss or damage due to acts of God or the conduct of third parties.
H.B. 5453
Creates the Vacant Building in Foreclosure Responsibility Act. Provides that for real estate in foreclosure on which there is a vacant building, the person who has legal title to the real estate or is the mortgagee of the real estate is required to register the vacant building with the Department of Financial and Professional Regulation. Provides that the registration fee for a vacant building is $250; the registration must be renewed every six months and a renewal fee of $250 must be paid. Establishes requirements for the maintenance of a vacant building's interior, exterior, and grounds and for security. Provides for inspection by the Department or any applicable municipal or county enforcement entity. Provides for penalties, rules, limiting home rule powers, and other matters.
H.B. 5454
Creates the Vacant Residential Building Database Act. Provides that a Vacant Residential Building Database Program shall be established and administered by the Department of Financial and Professional Regulation. Provides that within 10 days after obtaining information that a residential building is vacant, a lender, real estate broker, title insurance company, municipality, or county shall report that building and that the United States Postal Service and the Department of Housing and Urban Development may also submit information online to the department's database of vacant residential buildings. Provides that the department shall send regular periodic reports concerning vacant residential buildings to those municipalities and counties within whose jurisdiction any newly reported vacant residential buildings are located, but that no building need be reported to a county in which the building is located if the department knows that the building is located within the jurisdiction of a municipality. Provides that the department shall organize and maintain the database and report a summary of the data, by county, to the General Assembly and the governor semi-annually. Contains provisions regarding confidentiality, violations, and other matters. Creates the Vacant Residential Building Database Fund. Amends the State Finance Act and the Consumer Fraud and Deceptive Business Practices Act to make conforming changes.
H.B. 5456
Amends the Illinois Banking Act and the Illinois Savings and Loan Act of 1985. Provides that upon the conviction of a director or officer of a bank or savings and loan association, or the conviction of a bank or savings and loan association, of the offense of wrongful inducement of abandonment of a residence, the Secretary of the Department of Financial and Professional Regulation shall take control of the financial institution. Amends the Residential Mortgage License Act of 1987. Provides that if a licensee is convicted of wrongful inducement of abandonment, the person's license shall be revoked. Amends the Code of Civil Procedure. Amends provisions setting forth the elements of the offense of wrongful inducement of abandonment (a Class B misdemeanor) by adding language making it a Class A misdemeanor for a mortgagee or a person acting on behalf of a mortgagee to engage in specified prohibited conduct with the intent of inducing a mortgagor or occupant to abandon mortgaged residential real estate or with the intent of obtaining a finding of abandonment of residential real estate. Makes additions to provisions concerning a notice that is required to be sent to mortgagors whose loans are past due. Authorizes a fast-track foreclosure procedure for abandoned residential real estate under specified circumstances. Makes other changes.
H.B. 5665
Passed House 5/10/12
Amends the Code of Civil Procedure. Provides that a person commits false representation concerning title to real estate, a Class 4 felony, when he or she knowingly, as part of any transaction or legal proceeding under the Mortgage Foreclosure Article of the Code, claims an interest in real estate or executes, notarizes, or records a fraudulent real estate document and that a person commits a pattern of making false representations concerning title to real estate, a Class 3 felony, by committing false representation concerning title to real estate in two or more instances with a similar pattern or purpose which are not isolated incidents within the preceding four years and in which the aggregate loss or intended loss is more than $250. Provides that the attorney general has a private right of action for civil penalties arising from such conduct. Provides that a private cause of action for the owner or holder of the beneficial interest in real estate which is the subject of a false representation concerning title may bring a civil action in the circuit court in the county in which the real estate is located to recover damages suffered by the owner or holder of the beneficial interest plus reasonable attorney's fees.
H.B. 5731
Amends the Code of Civil Procedure. Provides that a mortgagor has a right to remain in the mortgaged premises as a renter following foreclosure proceedings by paying rent to the mortgagee in possession or the purchaser at the judicial sale. Defines terms. Provides for a mortgagee's notice to the mortgagor of the right to remain in the mortgaged premises as a tenant, terms of tenancy, mortgagor's responsibilities while renting the foreclosed property, rental rate set by the court, responsibility for maintenance of the foreclosed property, and other matters.
H.B. 5759
Amends the Mortgage Foreclosure Article of the Code of Civil Procedure and the State Finance Act. Provides that an attorney appointed by the chief judge of the judicial circuit shall be assigned as a mediator for mandatory foreclosure mediation prior to the filing of a residential real estate foreclosure action. Provides that a mortgagor who is delinquent by more than 45 days may petition for mediation. Provides that, unless a mortgagor has filed for bankruptcy, if a mortgage is delinquent by more than 60 days and the mortgagee intends to foreclose the mortgage, the mortgagee shall file a mediation notice with the circuit clerk. Provides that, upon the filing of a petition for mediation by a mortgagee or the filing of a mediation notice by a mortgagor, the mortgagee shall freeze the mortgagor's account and any obligation to pay any installment on the mortgage loan or any additional charge, fee, or penalty is stayed until a final mortgage modification plan is reached or the mediator's written report is filed with the circuit clerk. Provides that, when filing a foreclosure complaint for residential real estate, the plaintiff shall pay to the court clerk a $100 fee for deposit into the Mandatory Foreclosure Mediation Fund, a special fund in the state treasury. Provides that specified fines shall also be deposited into the fund. Provides that fees shall be remitted to the state treasurer and expended for purposes related to mediation. Contains provisions regarding: mailing; qualifications and assignment of mediators; payment to mediators; mediation sessions; counselors employed by approved counseling agencies; conclusion of mediation; fines; reports; limits on mediation; final plans; compliance; liability; waiver; intent; applicability; foreclosure complaints; and other matters.
H.B. 5760
Amends the Condominium Property Act. In provisions concerning liens for amounts due, for unpaid common expenses, provides, with respect to a condominium unit in foreclosure, that a mortgagee who receives title to a unit by purchase at a judicial foreclosure sale, by a deed in lieu of foreclosure, or by a court order pursuant to a foreclosure shall pay the unpaid proportionate share of the common expenses for the unit, related late charges, and attorney's fees that accrued before the mortgagee acquired title and those that later become due, up to the date of the conveyance of the unit pursuant to a sale by the mortgagee. Provides that a purchaser at a judicial foreclosure sale or a person who purchases a foreclosed unit from the mortgagee has no obligation to pay for the unpaid proportionate share of the common expenses for the unit, related late charges, or attorney's fees which accrued before the purchaser acquired title. Deletes language providing that: (i) the purchaser at a judicial foreclosure sale or a mortgagee who receives title by deed in lieu of foreclosure or by a court order shall pay the unit's common expenses from and after the first day of the month after the delivery of the deed in lieu of foreclosure, the sale, or the court order; and (ii) a person who buys a unit, other than a mortgagee, at a judicial foreclosure sale or from a mortgagee shall have the duty to pay the proportionate share of unpaid unit common expenses which would have become due (without any assessment acceleration) during the six months before the filing of an action to collect assessments. Makes other changes.
S.B. 16
Signed by governor 2/7/13, Public Act 97-1164
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. 1259
Signed by governor 1/13/12, Public Act 97-0666
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. 1355
To Senate for concurrence 5/25/12
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. 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.B. 2534
Passed Senate 5/25/12
Amends the Code of Civil Procedure. Adds to the mortgage foreclosure provisions a definition of "abandoned residential property". Provides requirement and procedures for an expedited judgment and sale of abandoned residential property. Provides that the period of redemption ends for abandoned residential property on the date of the judgment confirming the judicial sale. Makes other changes.
S.B. 3287
Signed by governor 8/9/12, Public Act 97-0913
Provides relief in mortgage foreclosure proceedings for military personnel in military service.
S.B. 3522
To Senate for concurrence 5/31/12
Amends the Conveyances Act. Declares that the existing provisions of the Act concerning the form of a mortgage are and always have been permissive and not mandatory. Provides that the failure of an otherwise lawfully executed and recorded mortgage to be in the form described in the Act in one or more respects, including the failure to state the interest rate or the maturity date, or both, shall not affect the validity or priority of the mortgage, nor shall its recordation be ineffective for notice purposes regardless of when the mortgage was recorded. Amends the Illinois Housing Development Act. Modifies the Abandoned Residential Municipality Relief Program to include counties and provides specific descriptions of rehabilitation activities. Provides that 75 percent of the money in the Abandoned Residential Property Municipality Relief Fund shall be paid by the Illinois Housing Authority to municipalities, other than Chicago, and to counties (instead of to municipalities other than Chicago). Amends the Criminal Code of 1961. In provisions creating the offense of criminal trespass to real property, adds that the offense includes the intentional removal of a notice posted on abandoned residential real estate, but also provides that a mortgagee or a mortgagee's agent is exempt from prosecution from criminal trespass for securing abandoned residential real estate and is not liable in a civil action for negligence or civil trespass. Amends the Code of Civil Procedure. Defines abandoned residential property as residential real estate that: is not occupied by any mortgagor or lawful occupant as a residence or contains a structure that is uninhabited and needs to be repaired; and has two or more (instead of one or more) of certain characteristics. In provisions concerning a notice of foreclosure, provides that a copy of the notice shall be sent to the municipality or county by specifying which public official (including the appropriate alderman in a city with a population in excess of 2 million) should receive the notice by first class mail. Provides for an expedited foreclosure procedure for abandoned residential property, including court hearings to determine if the property is abandoned, notices to the mortgagor and any occupants of the property, and corresponding modifications to the report of sale and confirmation of sale procedures. Modifies dates concerning time limits in 2013 and 2014 to reflect changes in federal law under the Making Home Affordable Program. Provides that a mortgagor or a lawful occupant may appear at the hearing with a non-attorney who may assist, but not represent, the occupant. In provisions concerning the filing fee for foreclosure prevention, states that if a plaintiff, together with its affiliates, has total assets greater than $10 billion the plaintiff shall pay an additional filing fee of $500. Prohibits assessment of the fee against a bank that, together with its affiliates, has total assets of $10 billion or less. Provides that the fees shall be expended according to a specified formula. Provides that the Abandoned Residential Property Municipality Fund and the Foreclosure Prevention Program Fund are not subject to sweeps, administrative charge-backs, or any other fiscal maneuver that would transfer any amounts from those funds into any other fund. In provisions concerning the expedited judgment and sale procedure for abandoned residential property, provides that the court may not grant a motion for an expedited judgment and sale if the mortgagor, an unknown owner, or a lawful occupant appears in the action before or at the hearing and objects to a finding of abandonment. In provisions concerning a report of sale and confirmation of sale, provides that a mortgagee that has filed a motion to expedite the judgment and sale shall complete and submit to the Department of Financial and Professional Regulation a report concerning motions to expedite the judgment and sale during the reporting period. In provisions concerning the judicial sale fee collected for the Abandoned Residential Property Municipality Relief Fund, sets the fee at $750 (instead of a calculated fee, not to exceed $300), if the purchaser is a mortgagee (instead of any purchaser, with exceptions for mortgagees) acquiring the residential real estate pursuant to its credit bid at the sale or any mortgagee, judgment creditor, or other lienor acquiring the residential real estate whose rights in and to the residential real estate arose prior to the sale, provided that the purchaser is the mortgagee, judgment creditor, or other lienor, and the purchaser, together with its affiliates, has total assets greater than $10,000,000,000. Prohibits assessment of the fee against a bank that, together with its affiliates, has total assets of $10,000,000,000 or less. In a provision concerning the judicial sale fee for the Abandoned Residential Property Municipality Relief Fund, deletes a provision making the fee inoperative on Jan. 1, 2018 as well as the provision's March 2, 2018 repeal date. Makes other changes.
S.B. 3676
Passed Senate 3/29/12
Amends the Property Tax Code. Provides that the county clerk shall abate 100 percent of property taxes levied by any taxing district for the first taxable year on foreclosed residential real estate purchased or otherwise received by a taxpayer for improvement, subject to certain conditions.
S.B. 3822
Amends the Code of Civil Procedure. Makes a technical change in a section regarding the short title of the Article concerning mortgage foreclosures.
Indiana
H.B. 1141
Signed by governor 3/14/12, Public Law 58
Establishes the mortgage foreclosure multistate settlement fund. Provides that the fund consists of: (1) money that is received by the state under a multistate agreement related to litigation concerning mortgage foreclosure activities and that is designated by the attorney general for deposit in the fund; (2) appropriations made to the fund by the general assembly; and (3) grants, gifts, and donations intended for deposit in the fund. Specifies that the fund shall be administered by the budget agency, and that money in the fund does not revert to the state general fund. Specifies that an amount equal to the state sales tax revenue that was collected in the preceding state fiscal year on the assistance provided through the Federal Low Income Home Energy Assistance block grant program (LIHEAP) is appropriated and transferred from the fund each year for a separate state home energy assistance program to provide assistance exclusively for individuals who own a home using the LIHEAP standards. Repeals the expired sales tax exemption for home energy purchased through the state program.
H.B. 1238
Signed by governor 3/16/12, Public Law 102
Provides a procedure that allows: (1) a creditor in a mortgage; or (2) an enforcement authority with jurisdiction in the location of the mortgaged property; to petition the court having jurisdiction over an existing mortgage foreclosure action to find that the mortgaged property is abandoned. Provides that upon receiving a petition for a determination of abandonment, the court shall issue an order to show cause as to why the property should not be found to be abandoned and to direct the appropriate parties to appear before the court on a date and time specified in the order. Provides that a party subject to the order has the right to: (1) present oral or written evidence or objections on the issue of abandonment to the court; and (2) be represented by an attorney when appearing before the court. Provides that certain specified conditions existing with respect to the mortgaged property constitute prima facie evidence that the property is abandoned. Provides that the debtor's failure to either: (1) present written evidence or objections on the issue of abandonment before the appearance date; or (2) appear before the court on the appearance date; constitutes prima facie evidence that the property is abandoned.
H.B. 1341
Defines "interested person" as: (1) a holder of an evidence of debt secured by a mortgage that is being foreclosed; or (2) an owner of real property as grantee in a deed of conveyance executed and delivered by a sheriff. Defines "omitted party" as a person: (1) who, before the commencement of an action for the foreclosure of a mortgage on real property, has acquired a record interest in the real property that is junior to the mortgage or other lien being foreclosed and would otherwise be extinguished by the foreclosure; and (2) who is not included as a defendant in the judicial foreclosure action or is included as a defendant in the judicial foreclosure action but is not served with process or notice of sale. Allows an interested person or an omitted party to bring a civil action at any time to: (1) determine the extent of an omitted party's interest in real property; or (2) terminate an omitted party's interest in real property; that is the subject of a judicial sale. Provides that in the civil action, the omitted party's interest in real property: (1) must be terminated by a decree in which the omitted party is afforded redemption rights if the omitted party would have been entitled to redeem under certain circumstances; and (2) is not subject to termination if the omitted party proves the omitted party has a right to receive proceeds that would be paid at the judicial sale. Provides that an amount paid for redemption to an omitted party may not be less than the sale price that results from the foreclosure of the interested person's senior lien plus interest.
Iowa
H.F. 2327
H.S.B. 613
Became H.F. 2327 2/20/12
This bill extends to July 1, 2013, the requirement that creditors provide notice of the availability of counseling and mediation services to homeowners facing foreclosure.
H.F. 2465
Signed by governor with line item veto 5/25/12, Chapter 1138
Relates to state and local finances by making and adjusting appropriations; provides for funding of property tax credits; provides for legal responsibilities; amends provisions regarding health insurance and other employee benefits; limits standing appropriations; includes appropriations from the National Mortgage Settlement.
S.F. 2316
Signed by governor with line item veto 6/7/12, Chapter 1140
The bill makes appropriations to state departments and agencies from the Rebuild Iowa Infrastructure Fund, the Technology Reinvestment Fund, the Endowment for Iowa's Health Restricted Capitals Fund, and the Mortgage Servicing Settlement Fund, and provides for related matters.
S.F. 2396
Signed by governor with line item veto 6/7/12, Chapter 1140
Makes appropriations to state departments and agencies from the Rebuild Iowa Infrastructure Fund, the technology reinvestment fund, the prison bonding fund, and the endowment for Iowa's health restricted capitals fund account; provides for related matters; includes appropriations from the National Mortgage Settlement.
Kansas
none
Kentucky
H.B. 1, Special Session
Signed by governor 4/24/12, Chapter 1
Provides that National Mortgage Settlement proceeds received by the Office of the Attorney General not to exceed $4 million over the 2012-2014 fiscal biennium shall be transferred to the Cabinet for Health and Family Services, General Administration and Support budget unit, to be expended only for upgrades to and operation of the KASPER system in accordance with this Act. If sufficient funds from the National Mortgage Settlement proceeds are less than $4 million, then the balance necessary shall be deemed a necessary government expense and shall be paid from the General Fund Surplus Account (KRS 48.700) or the Budget Reserve Trust Fund Account (KRS 48.705).
H.B. 62
Signed by governor 4/11/12, Chapter 44
Amends KRS 382.110, relating to the recording of deeds and instruments, requires a mortgage holder to file a deed in lieu of foreclosure with the county clerk within 45 days of the execution of the instrument's execution; amends KRS 382.990 to assess a penalty in the form of a violation of law for any mortgage holder who fails to file a deed in lieu of foreclosure pursuant to Section 1 of the Act; amends KRS 142.050, relating to the assessment of a transfer tax on property, exempts filing deeds in lieu of foreclosure filed pursuant to Section 1 of this Act from the transfer tax.
H.B. 142
Creates a new section of KRS Chapter 426 to provide that actions to recover deficiency judgments resulting from foreclosure proceedings must be brought within two years of the foreclosure sale and establishes procedure for determining fair market value of property; amends KRS 413.120 to include actions to recover monetary obligations arising from consumer loans, excluding loans secured by real property and loans for educational expenses; amends KRS 413.090 to conform.
H.B. 265
Signed by governor 4/11/12 with line item veto, Chapter 144
Veto message:
http://www.lrc.ky.gov/record/12RS/HB265/veto.pdf
Provides notwithstanding KRS 48.005, any funds received by the Commonwealth from the National Mortgage Settlement shall be deposited in a restricted account and shall not be expended without appropriation authority granted by the General Assembly.
H.B. 396
Signed by governor 4/11/12, Chapter 93
Creates a new section of KRS Chapter 426 to create an expedited sale mechanism for foreclosures involving vacant and abandoned real property; amends KRS 517.060, relating to the offense of defrauding a secured creditor, to include situations where collateral is intentionally damaged and to increase the penalties for the offense.
S.B. 4, Special Session
Provides that notwithstanding the provisions of 2012 Regular Session HB 265/EN, the proceeds received by the Commonwealth from the National Mortgage Settlement may be used at the discretion of the attorney general to support the implementation and operation of KASPER by the Office of the Attorney General.
Louisiana
H.B. 467
Signed by governor 5/14/12, Act 127
Provides for notice to occupants of seized property.
H.B. 535
Signed by governor 5/31/12, Act 400
Provides that certain provisions applicable to negotiable instruments or any instrument that would be negotiable but for a limitation of personal liability of the maker, shall also apply to promissory notes.
H.B. 822
Signed by governor 6/7/12, Act 597
Provides for the transfer and deposit of monies among state funds. Includes appropriations from the National Mortgage Settlement.
S.B. 380
The bill requires the registration with the Office of Financial Institutions of mortgage service companies. Defines a mortgage service company as a company that services the daily maintenance of a mortgage loan. Also includes any company or person who uses any instrumentality of intrastate or interstate commerce or the mails in any business the principal purpose of which is to service the daily maintenance of a mortgage loan in Louisiana, notwithstanding the fact that such company or person has no employees, offices, equipment, or other physical facilities in this state. Requires industry-based credentials certifying the company or person's competency to act as a mortgage service company. Requires that the commissioner establish an annual continuing education requirement for all employees of a mortgage service company, requiring a minimum of four hours of annual continuing education credit related to the administration of mortgage loans and professionalism in consumer relations. Also requires the commissioner to establish a program designed to improve the professionalism of the mortgage service industry. The bill establishes in the state treasury a special fund to be known as the Professionalism in Consumer Relations Fund, comprised of a portion of the proceeds recovered by the attorney general on behalf of the state from claims involved in the National Mortgage Settlement. Requires the treasurer to pay into the fund an amount appropriated by the legislature from the settlement proceeds. Provides that monies in the fund shall be annually appropriated to the Office of Financial Institutions solely for the purposes of defraying the costs of improving the professionalism of the mortgage service industry. Provides that all unexpended and unencumbered monies in the fund at the end of each fiscal year shall remain in the fund. Provides for investment of monies in the fund by the treasurer in the same manner as those in the state general fund, and provides for crediting of any interest earned on such investment to the state general fund.
S.B. 447
Substituted by S.B. 752 4/24/12
Authorizes municipalities to enact ordinances relative to the maintenance of property by owners and seizing creditors.
S.B. 752
Signed by governor 6/7/12, Act 692
Authorizes municipalities to enact ordinances relative to abandoned properties.
Maine
L.D. 145
Vetoed by governor 3/30/12
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.
Maryland
H.B. 491
Provides that a plaintiff or holder of a certificate of sale in a foreclosure action may be reimbursed for reasonable attorney's fees for specified participation in a bankruptcy proceeding or for opening an estate for specified purposes; and provides that a plaintiff or holder of a certificate of sale in a foreclosure action may be reimbursed for expenses actually incurred for opening an estate for specified purposes.
H.B. 508
Passed House 3/23/12
Requires a purchaser in a foreclosure sale to close on a transaction to purchase real property and record a deed transferring title to the property to the purchaser within 60 days after the entry of a final order ratifying a foreclosure sale.
H.B. 985
Withdrawn from further consideration 3/14/12
Prohibits a secured party or the secured party's assignee or representative from submitting more than one bid at a foreclosure sale.
H.B. 1288
Withdrawn from further consideration 3/20/12
S.B. 786
Passed Senate 4/9/12
Requires a secured party to file a specified request for foreclosure mediation at one of two points in a specified foreclosure proceeding; requires the court to stay foreclosure proceedings until the conclusion of foreclosure mediation under specified circumstances; requires the Department of Housing and Community Development to establish and maintain a Foreclosed Property Registry; establishes a tax credit for the purchase of residential property in a foreclosure hotspot.
H.B. 1342
Withdrawn from further consideration 3/22/12
Requires a purchaser in a foreclosure sale executing a judgment awarding possession of residential property and a landlord executing a warrant of restitution of residential property to store personal property remaining on the residential property for 30 days in a specified manner; provides that the purchaser and landlord are liable to the former occupant or tenant for damage to or loss of the personal property during the storage period; requires the purchaser and landlord to prepare a specified inventory at a specified time.
H.B. 1373
Signed by governor 5/2/12, Chapter 155
Requires the Department of Labor, Licensing, and Regulation to establish and maintain a Foreclosed Property Registry for specified property; requires specified foreclosure purchasers to register specified residential property and to pay registration fees; authorizes a local jurisdiction to enact a local law to impose a civil penalty; requires a local jurisdiction to give specified advance written notice before taking specified actions; establishes the Foreclosed Property Registry Fund.
H.B. 1374
Signed by governor 5/2/12, Chapter 156
Establishes a pre-file mediation process between a secured party and a mortgagor or grantor before the commencement of foreclosure actions under specified circumstances; provides that a mortgagor or grantor is not entitled to participate in mediation after the filing of foreclosure actions except under specified circumstances; establishes procedures and notices for participation in a pre-file mediation; authorizes a county or municipal corporation to charge a specified fee to issue a specified certificate.
H.B. 1801, Special Session
S.B. 1301, Special Session
Signed by governor 5/22/12, Chapter 1
Altering or repealing specified required appropriations; altering the distribution of specified revenues; altering or repealing specified funding requirements; altering the authorized use of specified funds; authorizing the transfer of specified funds; includes appropriations from the National Mortgage Settlement.
S.B. 98
Requires a purchaser in a foreclosure sale, if the purchaser is the secured party, to pay the entire amount of any required recordation or transfer taxes at the time of recording a deed transferring title to the property; requires the person authorized to make the sale to record a deed transferring title to the property or, if title has not been transferred, the final order of ratification within 60 days after the date of the final order ratifying the sale in an action to foreclose a mortgage or deed of trust.
S.B. 123
Signed by governor 5/22/12, Chapter 461
Requires the purchaser of specified residential property at a foreclosure sale to provide a copy of the court order ratifying the sale to the local supervisor of assessments within a specified period of time; specifies exceptions; requires the supervisor of assessments to provide a receipt to the person providing a copy of the ratification order.
S.B. 150
Became law without governor’s signature 4/9/12, Chapter 148
Makes the proposed appropriations contained in the state budget for the fiscal year ending June 30, 2013, in accordance with Article III, Section 52 of the Maryland Constitution; includes appropriations from the National Mortgage Settlement.
S.B. 788
Passed Senate 4/7/12
Requires a specified person authorized to make the sale of a residential or commercial property to give specified notice to the appropriate county agency; authorizes the appropriate county agency to collect a specified fee with a specified notice of a filing to foreclose on residential or commercial property.
Massachusetts
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
See H.B. 4083 5/10/12
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.
H.B. 4083
See H.B. 4087 5/14/12
Prevents unlawful and unnecessary foreclosures; requires a creditor to take reasonable steps and good faith efforts to avoid foreclosure upon certain mortgage loans before commencing foreclosure efforts; provides for prohibited conduct in relation to foreclosure; imposes a requirement that notice of the sale be published in a newspaper.
H.B. 4087
See H.B. 4096 5/16/12
Prevents unlawful and unnecessary foreclosures; provides that a creditor shall not publish notice of a foreclosure sale upon certain mortgage loans unless it has first taken reasonable steps and made a good faith effort to avoid foreclosure; provides that a creditor shall not publish notice of foreclosure when it knows or should know that it is not the present holder of the mortgage loan.
H.B. 4096
See H.B. 4323 7/25/12
Allows borrower's borrowers to pursue alternatives to foreclosure. Requires lenders to take reasonable steps and make a good faith effort to avoid foreclosure prior to publishing notice of a foreclosure sale; provides for sales to entities with a tax-exempt filing status.
H.B. 4323
Signed by governor 8/3/12, Chapter 194
Prevents unlawful and unnecessary foreclosures; provides procedures for the notice and public publishing of a foreclosure sale that includes a form that may be used by the mortgagee. Requires the taking of all reasonable steps at avoiding foreclosure prior to foreclosure sale publication including mortgage modification. Authorizes the use of short sale or deed-in-lieu of foreclosure; establishes a task force to study mortgage mediation programs. Requires mediation final outcome tracking.
H.B. 4480
Provides remedies to consumers for clearing title after payoff of mortgages; provides that a power of sale in any mortgage of real estate shall not be exercised and an entry shall not be made nor possession taken nor proceeding begun for foreclosure of any such mortgage after payoff and the expiration of a certain number of years from the recording of the mortgage or a certain number of years from the expiration of the term or from the maturity date.
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
See H.B. 4083 5/10/12
Prevents unlawful and unnecessary foreclosures.
S.B. 2287
See S.B. 2298 6/6/12
Contains the amended text of House bill 4096 which relates to unlawful and unnecessary foreclosures, provides for definitions, allows borrowers to pursue alternatives to foreclosure, requires lenders to take reasonable steps and make a good faith effort to avoid foreclosure prior to publishing notice of a foreclosure sale and provides for sales to entities with a tax-exempt filing status.
S.B. 2298
Contains the amended text of House bill 4096 which relates to unlawful and unnecessary foreclosures, provides for definitions, allows borrowers to pursue alternatives to foreclosure, requires lenders to take reasonable steps and make a good faith effort to avoid foreclosure prior to publishing notice of a foreclosure sale and provides for sales to entities with a tax-exempt filing status.
Michigan
H.B. 5015
Signed by governor 8/1/12, Public Act 296
The bill provides supplemental appropriations for fiscal year (FY) 2011-12 for eight state departments. These supplemental appropriations include recommendations from the State Budget Office (SBO) of $97.2 million in state restricted revenue from Michigan's share of the joint State-Federal foreclosure settlement (request 2012-15), as well as legislatively initiated appropriations of $1.6 million.
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.
H.B. 5176
Revises redemption periods for mortgages foreclosed by advertisement.
H.B. 5243
Prohibits mortgage foreclosures for homeowners in active military duty.
S.B. 1160
Signed by governor 8/1/12, Public Act 295
The bill enacts the Homeowner Protection Fund Act to create the Homeowner Protection Fund for the deposit of money allocated to the state from consent judgments in United States v. Bank of America Corp. and authorizes expenditures from the fund consistent with those consent judgments. Provides that the state treasurer is the administrator of the fund and administer it in consultation with the department of Attorney General. The treasurer must direct investment of the fund and credit to it interest and earnings from investments. Money in the fund at the close of the fiscal year will remain in the fund and not lapse to the general fund.
S.B. 1172
Signed by governor 12/28/12, Public Act 521
The bill amends Chapter 32 (Foreclosure of Mortgage by Advertisement) of the Revised Judicature Act to delay the sunset on the residential mortgage loan modification program for six months, until June 30, 2013. Specifically, §§3205a to 3205d provide for the mortgage modification program, and are scheduled to be repealed on December 31, 2012. The bill changes that date to June 30, 2013. Also, §3204 prohibits a party from beginning foreclosure proceedings under Chapter 32 if a required notice under the modification program has not been mailed to the borrower, if applicable time limits have not expired, or if the parties have agreed to modify the mortgage loan and the borrower is not in default. This provision applies only to proceedings in which the first notice of foreclosure has been published before December 31, 2012. The bill changes that date to June 30, 2013.
Minnesota
H.F. 1515
Signed by governor 3/20/12, Chapter 132
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. 1886
S.B. 1521
Allows a stay of mortgage foreclosure proceedings under certain conditions; landlord and tenant; providing rights to tenants of foreclosed property.
H.F. 2308
Indefinitely postponed 3/30/12
S.F. 2000
Passed Senate 3/28/12
Modifies provisions relating to foreclosure consultants.
H.F. 2818
S.F. 2549
Requires lender response to short sale requests; specifies consequences of non-response.
H.F. 2819
S.F. 2580
Requires transparency in mortgage loan modification criteria.
H.F. 2820
S.F. 2447
Provides for foreclosure forbearance for unemployed long-term  homeowners.
H.F. 2822
S.F. 2472
Provides a process for requesting mortgage loan modifications and for responses by lenders.
H.F. 2823
S.F. 2473
Enacts the Supporting Responsible Homeowners and Stabilizing Neighborhoods Act; provides homeowner opportunities in regard to underwater mortgage loans and foreclosure relief on residential homestead property.
H.F. 2925
Prohibits foreclosure if the lender has not acted on a loan modification request.
H.F. 3011
Requires that mortgage lenders who have foreclosed on real estate within a city must deed the property to the city in which it is located when the foreclosure has been completed; permits the city to charge the lender for any costs of repair or demolition; requires the lender to pay those charges.
H.F. 3012
Requires certain calculations; requires reduction in the mortgage loan balance under certain circumstances.
H.F. 3013
Provides for foreclosure forbearance for unemployed long-term homeowners.
H.F. 3014
Provides homeowners facing foreclosure with information about the current owner of the mortgagee interest in the property, the current holder of the mortgage, and the third-party servicer of the mortgage loan if any.
H.F. 3015
Provides that future mortgage foreclosures by advertisement will not be effective; providing that a deficiency judgment will no longer be available on foreclosures of homestead property by action or advertisement.
H.F. 3027
Provides foreclosed homeowners with the right to stay in the home for a longer period of time.
H.F. 3028
Requires lenders to make certain calculations prior to foreclosure.
H.F. 3029
Requires lenders to make certain post-foreclosure offers to former homeowners.
H.F. 3032
Regulates lender sale of a foreclosed property to a person who has an unremedied local housing code violation.
Mississippi
H.B. 70
Died in committee 3/6/12
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 and 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 and shalll 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. 75
Died in committee 3/6/12
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. 272
Died in committee 3/6/12
Establishes procedures for the foreclosure of mortgages by advertisement under which a borrower must be given an opportunity to meet with a lender regarding modification of a mortgage loan on a principal residence before foreclosure proceedings may be begun; prohibits a party from beginning foreclosure proceedings by advertisement if the prescribed procedures have not been followed or the applicable time limits have not expired, or if the parties have agreed to modify the loan and the borrower is not in default; requires a foreclosing party, before proceeding with a foreclosure sale by advertisement, to mail to the borrower a written notice containing specified information, including the name of a designated contact person who will have the authority to make modification agreements and a list of approved housing counselors; allows the borrower to bring an action to enjoin the foreclosure if the required notice was not served; requires the borrower to contact a housing counselor if he or she wishes to work out a modification, and requires the counselor to schedule a meeting with the designated contact person; provides that foreclosure proceedings may not be begun until 90 days after the notice was sent, if the borrower requests a meeting; requires the borrower, the designated person, or the housing counselor to calculate a modified payment if the meeting does not result in an agreement; requires the Mississippi Home Corporation to prepare a list of approved housing counselors; amends §§89-1-55 and 89-1-57 to conform to the provisions of this act.
H.B. 1275
Died in committee 3/6/12
Creates the Mississippi Residential Mortgage Foreclosure Mediation Program, which will provide for mediation between the borrowers and lenders before foreclosure actions on homestead property are begun; provides the procedures to be followed in the program.
H.B. 1587
Signed by governor 5/22/12, Chapter 100
Makes an appropriation for the purpose of defraying the expenses of the Office of the Attorney General for fiscal year 2013. Includes appropriations from the National Mortgage Settlement.
S.B. 2138
Died in committee 3/6/12
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. 2906
Died in committee 3/6/12
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. 1409
This bill requires a mortgage company or its loan servicing agents to fully disclose the terms of any notes or deeds of trust to any and all persons having a recorded interest in a real property within 30 days of a request or not less than 30 days prior to the start of any foreclosure proceeding. If a mortgage is in default, anyone having a recorded interest will have 30 days to satisfy the default regardless of who is liable on the loan.
H.B. 1611
This bill changes the laws regarding real estate foreclosure. In its main provisions, the bill: (1) Allows an owner-occupant facing nonjudicial foreclosure under a power of sale to elect to participate in dispute resolution or convert to judicial foreclosure; (2) Requires the foreclosing mortgagee to provide a defaulted debtor with a written notice of default and intention to foreclose that details the debtor's right to elect to participate in dispute resolution or convert to judicial foreclosure; (3) Requires the Division of Finance within the Department of Insurance, Financial Institutions and Professional Registration to establish a foreclosure dispute resolution program to provide a debtor facing foreclosure an opportunity to negotiate an agreement to avoid foreclosure or mitigating damages in cases when foreclosure is unavoidable. If a debtor elects to participate in the program, the division will open a dispute resolution case, assign a neutral party to oversee it, and submit a report detailing the outcome. All foreclosures are stayed during the process but can resume if the parties fail to reach an agreement. A fine of up to $1,500 may be imposed on either party for unjustified noncompliance as determined by the neutral party; (4) Allows a debtor to convert a nonjudicial foreclosure to a judicial foreclosure by filing a petition evidencing his or her intent to do so with the circuit court where the property is situated; and (5) Specifies prohibited foreclosure practices including holding a flawed public sale, delaying delivery of records, and completing nonjudicial foreclosure during short sale escrows or during loan modification negotiations. Any foreclosing mortgagee violating the provisions of the bill will be deemed to have committed an unlawful merchandising practice under §407.020, RSMo.
H.B. 2073
Repeals provisions relating to non-judicial foreclosure proceedings and requires all foreclosure proceedings be handled judicially beginning Aug. 28, 2012.
S.B. 510
To conference committee 5/17/12
This act requires county assessors to consider foreclosures and bank sales when establishing the value of parcels of real property for property tax purposes.
S.B. 554
This act changes the notice requirement to a tenant in a foreclosure action from 10 business days to 90 days.
S.B. 670
This act allows owner-occupants facing nonjudicial foreclosure under a power of sale to elect to participate in dispute resolution or convert to judicial foreclosure. Foreclosing parties are required to provide defaulted debtors with a notice of default and intention to foreclose that details the debtor's right to elect to participate in dispute resolution or convert to judicial foreclosure. The Division of Finance is required to establish a foreclosure dispute resolution program to provide debtors facing foreclosure an opportunity to negotiate with the foreclosing party to agree to avoid foreclosure. If a debtor elects to participate in the program, the division shall open a dispute resolution case and assign a neutral party to oversee the case and subsequently submit reports detailing the outcome of the case. All foreclosures are stayed during the process but may resume if the parties negotiate in good faith after complying with the rules of the process and fail to reach an agreement. A fine of not more than $1,500 may be imposed on either party for unjustified noncompliance as determined by the neutral party. Debtors may convert a nonjudicial to a judicial foreclosure by filing a petition evidencing their intent to do so, with the circuit court where the property is situated. Unlawful foreclosure practices are established including holding a flawed public sales, delaying delivery of records, completing nonjudicial foreclosure during short sale escrows or during loan modification negotiations. A party that violates any of the new requirements set forth in the act are deemed to have committed an unlawful merchandising practice under Chapter 407, RSMo.
Montana
No regular 2012 legislative session
Nebraska
none
Nevada
No regular 2012 legislative session
New Hampshire
H.B. 1252
Failed to pass House 3/7/12
This bill requires the copying of the deed of a property to be foreclosed and the signature of the clerk before a foreclosure sale can take place.
H.B. 1363
Failed to pass House 3/7/12
This bill defines a recorded interest relative to mortgage foreclosures.
New Jersey
A.B. 172
S.B. 1740
Passed Senate 11/29/12
Allows municipalities to require mortgage lenders to maintain vacant residential properties during foreclosure.
A.B. 1124
Requires landlord to permit tenant to remain in foreclosed property in certain circumstances.
A.B. 1435
Creates Foreclosure Prevention and Neighborhood Stabilization Revolving Trust Fund; places temporary surcharge on mortgage foreclosure complaints.
A.B. 1746
Mandates education program for “at risk” mortgage borrowers as condition for residential purchase or refinance.
A.B. 2168
Passed Assembly 6/25/12
S.B. 1566
Vetoed by governor 7/26/12
Veto message
Establishes the New Jersey Residential Foreclosure Transformation Act and provides expedited process for foreclosing abandoned residential properties.
A.B. 3072
S.B. 115
Passed Senate 5/31/12
Creates a cause of action for failure to maintain certain vacant properties; requires out-of-state creditors to designate in-state representative.
A.B. 3075
Codifies the Judiciary's Foreclosure Mediation Program; appropriates $2,500,000 for the program.
A.B. 3200
Substituted 6/25/12
S.B. 2013
Signed by governor with line item veto 6/29/12, Chapter 18
Makes appropriations for the support of the state government and the several public purposes for the fiscal year ending June 30, 2013 and regulating the disbursement thereof and includes appropriations from the National Mortgage Settlement.
A.B. 3248
Substituted 10/18/12
A.B. 3307
S.B. 2156
Signed by governor 12/3/12, Chapter 70
Establishes summary action to foreclose mortgages on vacant and abandoned residential property.
A.B. 3372
Substituted 12/3/12
S.B. 2202
Conditional veto 1/28/13
Requires the New Jersey Housing and Mortgage Finance Agency to expand participation in the New Jersey HomeKeeper Program.
A.B. 3396
Passed Assembly 12/3/12
Codifies the Judiciary's Foreclosure Mediation Program; dedicates monies from foreclosure filing fees and fines.
A.B. 3497
Revises residential property mortgage foreclosure process; requires documentation of right to foreclose and consultation on foreclosure alternatives; provides expedited process for foreclosing abandoned properties.
A.C.R. 145
S.C.R. 113
Passed Senate 12/20/12
Memorializes Congress and the President to authorize and encourage lenders to permit homeowners to remain in their homes as renters during and after foreclosure.
S.B. 665
Requires owner of foreclosed property to provide relocation assistance to tenant displaced by termination of illegal occupancy.
S.B. 1233
Withdrawn from further consideration 5/3/12
Requires certain owners of foreclosed property to file contact information with municipality and common interest community.
S.B. 1343
This bill requires the New Jersey Department of Community Affairs (DCA) to establish, maintain, and regularly update a website that will provide homeowners and other interested parties with answers to frequently asked questions about refinancing and curing mortgage defaults and list, describe, and provide a website link to various federal, state, local, for-profit, and non-profit organizations that provide services or guidance related to mortgage and credit problems.
S.B. 1344
Provides that deed restrictions on affordable housing units are not extinguished by foreclosure proceedings.
S.B. 1746
Provides foreclosure forbearance for certain residential borrowers and exempts certain lenders that offer sustainable mortgage modifications.
New Mexico
H.B. 143
Enacts the Foreclosure Fairness Act and allows recovery of attorney fees for the prevailing defendant in a foreclosure action.
S.B. 1
Enacts the Mortgage Fair Foreclosure Act. Requires written notice prior to foreclosure, requires an accounting, provides opportunity for mitigation of loss, provides for sanctions.
S.B. 38
Makes an appropriation for foreclosure mitigation counseling for at-risk homeowners and creates and implements a home buyer education program.
S.B. 70
Requires that the governing body of a class a county enact a foreclosure maintenance ordinance requiring the legal owner of a foreclosed residential real property to maintain the property; provides for a penalty.
S.B. 75
Enacts the Foreclosure Mediation Act. Provides for foreclosure mediation programs to assist homeowners and creditors. Requires good faith loss mitigation review, amends a section of the NMSA 1978 to clarify application of the foreclosure mediation act and; makes an appropriation.
S.B. 84
Amends the home loan protection ac and; clarifies that the home loan protection act does not affect foreclosure processes pursuant to the deed of trust act.
New York
A.B. 629
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. 4880
Enacting clause stricken 3/9/11
A.B. 6896
S.B. 1649
S.B. 4821
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.
A.B. 6745
S.B. 3148
Passed Senate 4/17/12
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. 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. 9096
Relates to good faith negotiations under mandatory settlement conferences. Defines the term "good faith," and provides that the failure of a creditor to act in good faith shall entitle the debtor to appropriate relief as determined by the court including dismissal of the proceeding and/or cancellation of the underlying loan where appropriate.
A.B. 9109
S.B. 6017
Requires lenders, assignees and mortgage loan servicers to submit an affidavit to the court at least 30 days before commencing foreclosure proceedings.
A.B. 10395
Passed Assembly 6/12/12
S.B. 7571
Relates to requiring certificates of merit in certain residential foreclosure actions.
A.B. 10524
Passed Assembly 6/19/12
S.B. 7620
Requires plaintiffs in mortgage foreclosure actions to provide contact information.
A.B. 10629
Passed Assembly 6/21/12
S.B. 7759
Enacts "the Foreclosure Fraud Prevention Act of 2012"; creates the crimes of residential mortgage foreclosure fraud in the first and second degrees.
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 million for such purposes.
S.B. 6459
Establishes the New York state mortgage settlement fund to consist of monies obtained by the state as a result of settlement with mortgage servicers to be used to compensate eligible homeowners who have been injured by foreclosure abuses; provides that homeowners eligible to receive compensation as a result of such settlement may elect certain bases for calculating such compensation; provides that eligible homeowners may request treble damages.
S.B. 7240
Relates to permitting foreclosure of real property improved by a non-residential building or certain multi-family buildings by the power of sale; establishes an effective non-judicial proceeding for uncontested commercial mortgage foreclosure.
S.B. 7379
Relates to representation in certain real property actions; provides for the assignment of counsel to a homeowner who is financially unable to obtain counsel for representation in actions relating to eviction and foreclosure.
S.B. 7859
Establishes a one year moratorium on actions to foreclose a mortgage.
North Carolina
H.B. 950
Vetoed by governor 6/29/12
Veto overridden 7/2/12, Chapter 142
Modifies the current operations and capital improvements appropriations act of 2011. Iincludes appropriations from the National Mortgage Settlement.
S.B. 826
Signed by governor 6/26/12, Chapter 79
Makes technical, clarifying, and administrative changes to the tax and related laws; amends the State Home Foreclosure Prevention Project and Fund.
S.B. 866
Passed Senate 6/28/12
Modifies the current operations and capital improvements appropriations act of 2011; includes appropriations from the National Mortgage Settlement.
North Dakota
No regular 2012 legislative session
C. Northern Mariana Islands not available
Ohio
H.B. 618
Amends §§2329.091, 2329.17, 2329.18, 2329.26, and 2329.38 and enacts §2329.092 of the Revised Code to require a levying officer to conduct the sale of foreclosed real property within 22 business days after the date of the judgment of foreclosure.
H.B. 621
Enacts §2323.08 of the Revised Code to require a mortgagee who is a plaintiff in a mortgage foreclosure action to keep the condition of certain real property in accordance with requirements of the state building and fire codes, and any applicable local codes, for the period of time between the judgment of foreclosure and the recording of the deed of the property.
S.B. 109
Passed Senate 3/28/12
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.
Oklahoma
none
Oregon
H.B. 4137
Charges mortgage loan servicer with duty of good faith and fair dealing toward borrower. Describes extent of duty. Requires servicer to respond to and take action concerning borrower's qualified correspondence within certain time limits. Requires servicer to implement policies and procedures that enable servicer to respond to borrower promptly. Requires servicer to credit payments to borrower's mortgage loan account on certain date. Prohibits servicer from charging late fee until after servicer credits payment to borrower's account. Requires servicer to provide borrower with certain statements of account at fixed times and at borrower's request. Prescribes timing for and content of statements. Requires servicer to maintain schedule of fees and charge only fees that are reasonable, that are for services rendered or costs incurred, that are authorized by mortgage loan agreement and that are not prohibited by law. Requires servicer to inform borrower of and explain borrower's options for mortgage loan modification or other assistance in certain circumstances. Provides exceptions. Requires servicer to submit certain reports to the director of Department of Consumer and Business Services and to keep certain books, records and other materials. Prohibits servicer from violating provisions of Act and from taking or failing to take certain other actions. Provides that violation is unlawful practice subject to enforcement under Unlawful Trade Practices Act.
H.B. 4138
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.
H.B. 4140
Requires beneficiary or beneficiary's agent under residential trust deed to send notice of mediation and enter into mediation with grantor for purpose of agreeing to foreclosure avoidance measure. Specifies form and content of notice of mediation, date by which notice must be sent and method of service. Specifies duties of beneficiary or beneficiary's agent with respect to mediation. Requires beneficiary or beneficiary's agent to record certificate of compliance from mediation service provider in order to proceed with foreclosure of trust deed. Establishes Foreclosure Avoidance Mediation Fund. Continuously appropriates moneys in fund to the attorney general to pay expenses of coordinating mediation program. Requires trustee or beneficiary that records notice of default to pay $100 charge in addition to recording fee unless trustee or beneficiary provides certain affidavit. Permits grantor that is at risk of default to request mediation with beneficiary or beneficiary's agent. Requires trustee to notify certain persons if trustee postpones trustee's sale. Provides that violation of requirement to notify certain persons of postponed trustee's sale and failure to comply with requirements for mediation are unlawful practices that are enforceable under unlawful trade practices law.
H.B. 4147
Requires that each transfer, assignment or other conveyance of beneficial ownership or beneficial interest in note or other instrument that is evidence of obligation grantor owes and that is secured by trust deed on residential property must be recorded with county clerk within 15 calendar days in order for trustee to foreclose trust deed by advertisement and sale.
S.B. 1552
Signed by governor 4/11/12, Chapter 112
Requires beneficiary or beneficiary's agent under residential trust deed to send notice of mediation and enter into mediation with grantor for purpose of agreeing to foreclosure avoidance measure.
S.B. 1564
Passed Senate 2/16/12
Requires beneficiary to determine whether grantor qualifies for foreclosure avoidance measure or has not complied with terms of foreclosure avoidance measure to which grantor agreed.
S.B. 1576
Requires beneficiary or beneficiary's agent under residential trust deed to send notice of mediation and enter into mediation with grantor for purpose of agreeing to foreclosure avoidance measure.
Pennsylvania
H.B. 1682
Signed by governor 10/24/12, Act 153
Provides for the creation of land banks for the conversion of vacant or tax-delinquent properties into productive use.
H.B. 2138
Provides for foreclosed property maintenance; and imposes penalties.
H.B. 2301
Establishes a fund for the purpose of funding the Homeowner's Emergency Mortgage Assistance Program; and provides for an appropriation.
H.R. 661
Urges the Office of Attorney General to use the $69 million being allocated to that office from the national mortgage settlement for housing initiatives.
S.B. 1364
Provides for an annual transfer to the Homeowner's Emergency Mortgage Assistance Fund.
S.B. 1373
Passed Senate 3/14/12
Provides for six months limitation and for deficiency judgments.
S.B. 1414
Provides for the creation of land banks for the conversion of vacant or tax-delinquent properties into productive use.
S.B. 1433
Signed by governor 6/22/12, Act 70
Provides for the Homeowner Assistance Settlement Act. Establishes a fund for the purpose of funding the Homeowner's Emergency Mortgage Assistance Program and provides for the effect of noncompliance with the notice requirements of the homeowner's emergency mortgage assistance program and for allocations from the fund.
S.R. 260
Directs the Legislative Budget and Finance Committee to conduct an economic impact study of the Homeowners Emergency Mortgage Assistance Program in this Commonwealth.
Puerto Rico
H.B. 3310
Passed Senate 6/20/12
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.
S.B. 1434
Signed by governor 9/6/12, Chapter 184
Creates the Compulsory Mediation and Your Home Preservation Act to insert the compulsory mediation process between the mortgagee and the mortgagor in the foreclosure process on Property devoted to housing.
S.B. 2114
Passed Senate 2/23/12
Relates to the law to prevent foreclosures. Requires the mortgagor to present arrears on your mortgage and; establishes certain requirements prior to beginning the foreclosure process.
Rhode Island
H.B. 7136
Passed House 5/29/12
This act provides a tenant of a foreclosed property greater protection against eviction.
H.B. 7225
Signed by governor 6/8/12, Chapter 177
This act stays or prohibits the foreclosure on property owned by persons in the military under certain circumstances.
H.B. 7323
Signed by governor 6/15/12, Chapter 241
Relates to making appropriations for the support of the state for the fiscal year ending June 30, 2013, includes appropriations from the National Mortgage Settlement.
H.B. 7657
This act prohibits mortgagees that acquire residential real estate at a foreclosure sale that they conduct from evicting tenants residing there solely as a result of the foreclosure sale. This act also allows the tenant to stay for a period of 60 days thereafter; provided, the tenant pays any and all rent due to the mortgagee.
H.B. 7658
This act requires that foreclosure deeds be recorded within 30 days of foreclosure and increases the penalties for violation of this requirement.
H.B. 7746
This act requires that foreclosure deeds be recorded within 30 days of foreclosure and increases the penalties for violation of this requirement.
H.B. 7842
Passed House 5/30/12
This act requires a mortgagee to participate in good faith in a conciliation conference prior to initiating foreclosure proceedings. This act applies only to individual consumer mortgages on any owner-occupied, one to four unit residential property.
H.B. 7855
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. 7987
This act establishes the Rhode Island Foreclosed Property Upkeep Act to require a purchaser of a foreclosed property to maintain the property and also to identify an agent in Rhode Island for service of process.
S.B. 2371
This act requires that foreclosure deeds be recorded within 30 days of foreclosure and increases the penalties for violation of this requirement.
S.B. 2533
Signed by governor 6/6/12, Chapter 161
This act stays or prohibits the foreclosure on property owned by persons in the military under certain circumstances.
S.B. 2684
This act requires a mortgagee to participate in good faith in a conciliation conference prior to initiating foreclosure proceedings. This act applies only to individual consumer mortgages on any owner-occupied, one to four unit residential property.
S.R. 2212
Adopted 6/12/12
This act provides a tenant of a foreclosed property greater protection against eviction.
S.R. 3052
Adopted 6/7/12
Establishes a special Senate commission to study homeowner loan modification programs within the state of Rhode Island.
South Carolina
H.B. 4813
Signed by governor with line item veto 7/5/12, Act 288
Makes appropriations; provides revenues to meet the ordinary expenses of state government for the fiscal year beginning July 1, 2012; regulates the expenditure of such funds; includes appropriations from the National Mortgage Settlement.
S.B. 1259
Adds article 9 to chapter 3, title 29 so as to enact the "South Carolina Junior Lien Holders' Act"; provides certain definitions, and provides for the determination of an amount owed by a debtor to a junior lien holder in an action brought by the lien holder for a monetary judgment after foreclosure on the property subject to the lien, and limits the time in which this action may be brought.
S.B. 1433
Establishes a deed of trust study committee to determine the efficacy and feasibility of utilizing a deed of trust rather than a mortgage for a foreclosure security instrument, and provides for the duties and membership of the study committee.
South Dakota
none
Tennessee
H.B. 2835
S.B. 3355
Requires notices of foreclosures, land sales, transactions involving real property and other legal notices required by statute be publicized by publishing notice in certain local newspapers and posting notice on certain websites.
H.B. 3740
S.B. 3571
Prohibits the transfer of a possessory interest in a deed of trust, mortgage or other lien securing the payment of money or other thing of value on an owner-occupied residence while a foreclosure is pending.
H.B. 3835
Signed by governor 5/15/12, Public Chapter 1029
S.B. 3768
Makes appropriations for fiscal years beginning July 1, 2011, and July 1, 2012. Includes appropriations from National Mortgage Settlement.
Texas
No regular 2012 legislative session
Utah
H.B. 2
Signed by governor 3/15/12, Chapter 416
Supplements or reduces appropriations previously provided for the use and operation of state government for the fiscal year beginning July 1, 2012 and ending June 30, 2013. Includes appropriations from the National Mortgage Settlement.
H.B. 164
Signed by governor 3/19/12, Chapter 164
This bill: requires a beneficiary or servicer to appoint a single point of contact upon determining that a loan secured by a trust deed on owner-occupied residential property is in default. Requires notice to a default trustor before a notice of default is filed; allows a default trustor to make application for foreclosure relief if the beneficiary or servicer offers foreclosure relief. Establishes duties of the single point of contact during the three-month period following a notice of default and makes provisions applicable if a default trustor applies for foreclosure relief.
H.B. 280
Signed by governor 3/22/12, Chapter 301
This bill: extends a repeal date from Dec. 31, 2012 to Dec. 31, 2014, for provisions requiring a notice for residential rental property that is being foreclosed.
S.B. 42
Signed by governor 3/15/12, Chapter 79
This bill: bars an action to recover a deficiency following a short sale of single-family residential property unless the action is commenced no later than three months after the short sale.
S.B. 281
Signed by governor 3/22/12, Chapter 350
This bill: modifies the duties of the attorney general, creates the Mortgage and Financial Fraud Unit within the Office of the Attorney General to investigate and prosecute mortgage and other financial fraud throughout the state. Authorizes the attorney general to administer the Mortgage and Financial Fraud Unit. Creates the Mortgage and Financial Fraud Investigation and Prosecution Restricted Account and makes technical changes.
Vermont
H.B. 403
Signed by governor 5/5/12, Act 102
This act reorganizes and consolidates the statutory provisions regarding foreclosure of mortgages. The act does not make a great number of significant substantive changes to current law that affect the rights of borrowers or lenders.Rather, the act restructures and modernizes existing foreclosure statutes to improve clarity and ease of use for the parties, practitioners, and the judiciary. In particular, the act unifies the currently disconnected statutory mortgage foreclosure provisions into three distinct subchapters that correspond to the three types of foreclosure available to lenders: strict foreclosure, judicial sale foreclosure, and nonjudicial sale foreclosure.
H.B. 600
To conference committee 5/3/12
This bill extends the requirement of mandatory mediation in foreclosure proceedings beyond the expiration of the federal Home Affordable Modification Program.
H.B. 781
Signed by governor 5/5/12, Act 162
Provides that any funds received in fiscal year 2012 or 2013 from the national mortgage foreclosure settlement that are deposited into the fees and reimbursement special fund (#21638) in the office of the attorney general shall be transferred to the general fund except for any amount the settlement may require to be directed to the department of banking, insurance, securities, and health care administration.
Virginia
H.B. 28
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 county or city 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, uses, 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 on.
H.B. 412
Provides that a property owner or condominium association may conduct a foreclosure sale on a lien for unpaid assessments subject to the lien of a first trust. The bill also provides that such portion of the unpaid assessments due and owing the association for a period not to exceed three years that is directly attributable to providing the maintenance and upkeep of the common areas and such other areas of association responsibility expressly provided for in the declaration, including capital expenditures, shall be prior to all other liens and encumbrances, except real estate taxes. The bill contains technical amendments.
H.B. 821
Creates a civil cause of action for the owner of any residential real property against any person who wrongfully asserts that he is, or has the authority to act as, the holder of the obligation secured by a deed of trust or mortgage on such property and who wrongfully initiates any foreclosure proceeding upon the property. The owner is entitled to recover actual damages incurred as a result of the wrongful foreclosure, in addition to reasonable attorney fees and costs.
H.B. 822
Provides that if a borrower has submitted an application to modify the terms of a loan securing a debt on any residential real property that serves as the primary residence of the borrower, a mortgage lender or mortgage servicer may not initiate foreclosure on such property until (i) it has denied the application or (ii) if the modification was granted, the borrower has defaulted under the terms of the modification. A mortgage lender or mortgage servicer shall also notify in writing the borrower of its denial of an application for modification and its reasons therefor within 30 days after receipt.
H.B. 890
Provides that the grantor under a first priority deed of trust securing a loan on residential real property may, at any time up to the date of the sale of the property, cure any default, de-accelerate, and reinstate the loan by paying all sums that would have been due in the absence of default, paying other fees and costs incurred by the trustee and beneficiary in connection with the 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 only once.
H.B. 1110
Signed by governor 4/18/12, Chapter 788
Allows a plaintiff in an unlawful detainer action to submit copies of the lease under certain circumstances. The bill also (i) removes the four-residential-unit limitation on the exemption of an owner who performs mold inspection or remediation from licensure as a mold inspector or remediator; (ii) revises the definition of dwelling unit; (iii) allows a tenant to stay in the dwelling unit after foreclosure of the property containing the dwelling unit under certain circumstances; (iv) provides that in unlawful detainer actions, the proceeding shall be dismissed under certain conditions if the tenant pays the landlord or his attorney, or pays into court all (a) rent due and owing as of the court date, (b) damages and other charges contracted for in the rental agreement, (c) late charges contracted for in the rental agreement, (d) reasonable attorney fees, and (e) costs of the proceeding; and (v) allows the landlord to recover from the tenant the tenant's prorated share of the actual costs of other insurance coverages provided by the landlord relative to the premises, including the landlord's administrative or other fees associated with the administration of such coverages.
H.B. 1301
Signed by governor with line item veto 6/11/12, Chapter 3
Appropriations of the Budget providing a portion of revenues for the two years ending respectively on June 30, 2013 and June 30, 2014. Includes appropriations from the National Mortgage Settlement.
S.B. 163
Passed Senate 2/9/12
Provides that any person who knowingly makes, uses, or causes to be made or used a false or fraudulent record, document, or statement in support of any foreclosure shall be liable to the injured party. Upon proof of both a violation and damages, the injured party shall be entitled to appropriate equitable relief and compensatory damages. If compensatory damages are awarded, an injured party may also be awarded punitive damages. A person violating the provisions of this bill shall be liable for reasonable attorney fees and costs of a civil action.
S.B. 644
Passed Senate 2/14/12
Directs the director of the Department of Housing and Community Development to establish a pilot program for Prince William County and the cities of Manassas and Manassas Park under which qualified employees of the Department will provide foreclosure counseling to homeowners at no charge. Counseling will include facilitated negotiations between homeowners and mortgagees for the purpose of reaching an agreement for mortgage loan modification or other agreement in an attempt to avoid foreclosure or to mitigate damages if foreclosure is unavoidable. Participation in the program is optional. The director is required to report on the effectiveness of the program. The measure expires July 1, 2017. The bill is contingent upon an appropriation of general funds effectuating the provisions of the bill.
S.J.R. 71
Directs the Virginia Housing Commission to study the foreclosure procedures of the Commonwealth.
Virgin Islands not available
Washington
H.B. 2421
Passed House 2/11/12
S.B. 6364
Amends the Foreclosure Fairness Act to, among other things: (1) change when a borrower may be referred to mediation; (2) change the time period between the trustee sale and the recording of the notice of sale for owner-occupied residential real property; (3) allow the mediator discretion to cancel a mediation session and continue a session; (4) provide immunity for all foreclosure mediators; (5) clarify what information a beneficiary and borrower must provide each other before mediation; (6) change the allocation of funds remitted by beneficiaries; and (7) make other procedural changes to the mediation process.
H.B. 2614
Signed by governor 3/29/12, Chapter 185
Limits deficiency judgments pertaining to residual debts following short sales of owner-occupied residential property secured by deeds of trust. Requires notification to sellers involved in short sales. Amends the Foreclosure Fairness Act regarding foreclosure mediation, amends the Deeds of Trust Act regarding notices of sale,  provides a process to rescind a trustee sale in limited circumstances and provides for foreclosure and mortgage counseling.
H.B. 2718
S.B. 6337
Provides protection, under certain circumstances, to short sale sellers from payment of forgiven home loan debt.
S.B. 6514
Requires a trustee for owner-occupied properties to publish notice of owner-occupied real property foreclosure sales on certain internet web sites for a specified period of time.
S.B. 6515
Authorizes certain domestic limited liability corporations to be a trustee pursuant to the provisions of chapter 61.24 RCW (deeds of trust). Authorizes a trustee, beneficiary, or agent for a beneficiary, until up to the 11th day following the trustee's foreclosure sale, to declare the trustee's sale and deed void for certain reasons.
West Virginia
S.B. 360
Signed by governor 4/2/12, Chapter 136
Creates a procedure for deeming personal property abandoned following a transfer of real property by tax sale or foreclosure. Requires notice to the owner of personal property remaining on real property after the previous owner has vacated. Creates a procedure for notice and removal of personal property within a 30-day period, giving the purchaser of real property the authority to remove personal property after proper notice and waiting period. Prohibits waiver of notice requirement prior to vacation of property.
S.B. 551
Signed by governor 4/2/12, Chapter 120
Relates to prohibitions on primary and subordinate mortgage loans.
Wisconsin
A.B. 137
Failed to pass pursuant to Senate Joint Resolution 1 3/23/12
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 10 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 Dec. 31, 2014, or involving default-foreclosure notices provided before Dec. 31, 2014.
A.B. 414
Failed to pass pursuant to Senate Joint Resolution 1 3/23/12
Under current law, in most mortgage foreclosure actions involving a home or other real property, if a homeowner (borrower) fails to pay the money he or she owes to the issuer of his or her mortgage (lender), a court may enter a judgment of foreclosure against the borrower and order that the property be sold at public auction in order to satisfy the debt the borrower owes to the lender. After the court has issued a judgment of foreclosure, the borrower may stop the sale of the home by paying off, within a certain period (redemption period), the amount he or she owes to the lender. Under current law, abandoned properties have a two-month redemption period, while most other properties have a redemption period of either six or 12 months, depending on whether the sale of the home will satisfy the debt owed to the lender. This bill shortens the redemption period for abandoned properties from two months to five weeks. The bill also lists some factors for determining whether a property has been abandoned and allows the court to receive evidence from a representative of the city, town, village, or county where the property is located as to whether the property has been abandoned.
A.B. 636
Failed to pass pursuant to Senate Joint Resolution 1 3/23/12
This bill prohibits the expenditure of money directly received by the state from the national mortgage settlement unless the expenditure is approved by the legislature.
A.B. 672
Failed to pass pursuant to Senate Joint Resolution 1 3/23/12
Of the money received by the state as a result of the national mortgage foreclosure settlement, $25,600,000 will be deposited in the general fund as general purpose revenue (GPR). This bill allocates that GPR as follows: 1. The Department of Children and Families must provide $10 million in additional aid under its emergency assistance to needy persons program to eligible persons who are homeless or facing impending homelessness due to natural disaster or foreclosure. 2. The Department of Financial Institutions must provide $10 million in grants to assist nonprofit organizations and governmental bodies for the purpose of foreclosure mediation and foreclosure prevention. 3. The Department of Veterans Affairs must provide $3 million in housing vouchers for chronically homeless veterans and in grants to veterans for preventing foreclosures on veterans’ primary residences. 4. The Department of Agriculture, Trade and Consumer Protection (DATCP) must provide a grant of $1.6 million to the Tenant Resource Center (TRC) in Madison to enable the TRC to expand its operations statewide, establish physical offices in the five counties with the highest rates of foreclosure, and provide services related to foreclosure prevention and tenant mediation. DATCP must first approve a plan submitted by the TRC for the use of the funds, and the TRC must submit to DATCP, within six months of using the funds, a report detailing how the funds were used. 5. The director of state courts must provide a grant of $1million to the Milwaukee Foreclosure Mediation Program (MFMP) for its general operations.  The MFMP must enter into an agreement with the director of state courts that specifies the conditions for the use of the funds, and the MFMP must submit to the director of state courts, within six months of using the funds, a report detailing how the funds were used.
S.B. 307
Signed by governor 3/21/12, Act 136
Under current law, in most mortgage foreclosure actions involving a home or other real property, if a homeowner (borrower) fails to pay the money he or she owes to the issuer of his or her mortgage (lender), a court may enter a judgment of foreclosure against the borrower and order that the property be sold at public auction in order to satisfy the debt the borrower owes to the lender.  After the court has issued a judgment of foreclosure, the borrower may stop the sale of the home by paying off, within a certain period (redemption period), the amount he or she owes to the lender. Under current law, abandoned properties have a two-month redemption period, while most other properties have a redemption period of either six or 12 months, depending on whether the sale of the home will satisfy the debt owed to the lender. This bill shortens the redemption period for abandoned properties from two months to five weeks.  The bill also lists some factors for determining whether a property has been abandoned and allows the court to receive evidence from a representative of the city, town, village, or county where the property is located as to whether the property has been abandoned.
S.B. 468
Failed to pass pursuant to Senate Joint Resolution 1 3/23/12
This bill prohibits the expenditure of money directly received by the state from the national mortgage settlement unless the expenditure is approved by the legislature.
S.B. 511
Failed to pass pursuant to Senate Joint Resolution 1 3/23/12
Of the money received by the state as a result of the national mortgage foreclosure settlement, $25,600,000 will be deposited in the general fund as general purpose revenue (GPR). This bill allocates that GPR as follows: 1. The Department of Children and Families must provide $10 million in additional aid under its emergency assistance to needy persons program to eligible persons who are homeless or facing impending homelessness due to natural disaster or foreclosure. 2. The Department of Financial Institutions must provide $10 million in grants to assist nonprofit organizations and governmental bodies for the purpose of foreclosure mediation and foreclosure prevention. 3. The Department of Veterans Affairs must provide $3 million in housing vouchers for chronically homeless veterans and in grants to veterans for preventing foreclosures on veterans’ primary residences. 4. The Department of Agriculture, Trade and Consumer Protection (DATCP) must provide a grant of $1.6 million to the Tenant Resource Center (TRC) in Madison to enable the TRC to expand its operations statewide, establish physical offices in the five counties with the highest rates of foreclosure, and provide services related to foreclosure prevention and tenant mediation. DATCP must first approve a plan submitted by the TRC for the use of the funds, and the TRC must submit to DATCP, within six months of using the funds, a report detailing how the funds were used. 5. The director of state courts must provide a grant of $1 million to the Milwaukee Foreclosure Mediation Program (MFMP) for its general operations. The MFMP must enter into an agreement with the director of state courts that specifies the conditions for the use of the funds, and the MFMP must submit to the director of state courts, within six months of using the funds, a report detailing how the funds were used.
Wyoming
S.F. 72
Provides that a foreclosure sale of property held by a decedent whose estate is in probate may not occur without supervision of the probate court.

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