Foreclosures 2015 Legislation

Heather Morton 4/18/2016

Foreclosure SignThe housing market continues to be turbulent. Delinquent payments and the number of homeowners entering foreclosure continue, although the numbers are slowing improving. Job losses and unemployment continue to drive the delinquency and foreclosure increases. The employment recovery is progressing slowly.

In 2015, lawmakers in 38 states and Puerto Rico introduced legislation regarding foreclosures. Fifty-four bills and resolutions were enacted or adopted. The list below contains legislation regarding regulating foreclosure consultants and distressed property purchasers, amending the foreclosure process to address concerns regarding so-called robo-signing and protecting tenants' rights who are renting homes facing foreclosure.

(Excludes foreclosures due to tax delinquencies and homeowner associations.)

NOTE: Please note the summaries should be used for general informational purposes and not as a legal reference. If you have questions regarding a specific case involving a mortgage or foreclosure, please contact an attorney in your state. NCSL is unable to provide assistance or advice in individual cases.

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State Bill Number Bill Summary
Foreclosures 2015 Legislation
Alabama

H.B. 256

Indefinitely postponed 6/3/15

This bill reduces the redemption period to 90 days for residential property on which a homestead exemption was claimed in the tax year during which the sale or foreclosure occurred.

Alabama

S.B. 124

Signed by governor 4/23/15, Act 79

Relates to redemption of certain real property for which a homestead exemption was claimed and which was foreclosed on under a mortgage or sold by virtue of a judgment; reduces the redemption period; provides for partial prospective operation.

Alaska

None

 
Arizona

S.B. 1448

Signed by governor 4/2/15, Chapter 190

Requires a notice of trustee’s sale to include a statement in its first paragraph specifying that the sale will be final, unless: a) an action is filed and a court order stopping the sale is obtained before 5 p.m. Mountain Standard Time on the last business day before the scheduled date of the sale; or b) the right to defend or object to the sale is waived.

Arkansas

S.B. 1016

Signed by governor 4/6/15, Act 1139

Concerns judicial, nonjudicial, and tax sales; regulates abandoned personal property left within or on the real property involved; requires the notification of the last owner of the real property up for foreclosure regarding the personal property being considered abandoned under certain conditions.

California

A.B. 99

Vetoed by governor 10/10/15

The Personal Income Tax Law provides for modified conformity to specified provisions of federal income tax law relating to the exclusion of the discharge of qualified principal residence indebtedness, as defined, from an individual’s income if that debt is discharged after Jan. 1, 2007, and before Jan. 1, 2014, as provided. The federal Tax Increase Prevention Act of 2014 extended the operation of those provisions to debt that is discharged before Jan. 1, 2015. This bill conforms to that federal extension, discharge indebtedness for related penalties and interest, and makes legislative findings and declarations regarding the public purpose served by the bill.

California A.B. 205

Until Jan. 1, 2018, existing law permits an owner of specified residential property in the cities of Palmdale and Lancaster in the county of Los Angeles or the city of Ukiah in the county of Mendocino to register vacant real property with the local law enforcement agency and to execute a Declaration of Ownership of Residential Real Property that may be filed with the local law enforcement agency of the jurisdiction in which the property is located. Existing law requires the local law enforcement agency with which the property is registered to respond as soon as practicable after being notified that an unauthorized person has been found on the property and take specified action, including requiring a person who is found on the property to produce written authorization to be on the property or other evidence demonstrating the person’s right to possession, and notifying any person who does not produce that authorization or other evidence that the owner or owner’s agency may seek to obtain a court order and that the person will be subject to arrest for trespass if he or she is subsequently found on the property in violation of that order. This bill extends the residential property subject to these provisions to include the city of Eureka in the county of Humboldt, the city of Fairfield in the city of Solano, and the counties of Humboldt and Lake.

California

S.B. 153

Existing law defines mortgage foreclosure consultants and regulates their activities. Existing law states the intent of the Legislature to protect homeowners who are in the process of foreclosure from abuses and fraudulent practices by foreclosure consultants. This bill makes technical, nonsubstantive changes to these provisions.

Colorado

H.B. 1113

The bill specifies that, if a holder of an evidence of debt against a property subject to a foreclosure sale causes the foreclosure sale to be continued, the holder is liable for any common expense assessments made against the property under the "Colorado Common Interest Ownership Act" for the period between the originally designated date of sale and the actual date of sale.

Colorado

H.B. 1142

Signed by governor 4/21/15, Chapter 113

The act authorizes the public trustee of a county to conduct foreclosure sales through the internet or another electronic means and allows for the collection of a specific fee of up to $60 for sales that are conducted electronically. The trustee shall publish information related to such sales electronically as well as through traditional means such as posting a physical document. The act adjusts bidding procedures to accommodate electronic bidding, allowing the holder of the evidence of debt on the subject property to submit both an initial bid and a maximum bid, with the amount increasing by increments up to the maximum if there are competing bidders. If a sale is conducted electronically, bids may be amended electronically during the sale as well as in person by those who are physically present. The trustee and other county officials are granted immunity from liability in case of a failure of electronic equipment used to conduct the sale.

Colorado

H.B. 1311

Postponed indefinitely 4/2/15

Under current law, the public trustee is required to send specified notices to all persons identified as having an interest in property subject to a foreclosure and to accompany all notices with copies of selected statutes governing the conduct of the foreclosure sale. The bill replaces the requirement to send copies of the statutes with a requirement to send an information sheet outlining the key provisions of the statutes, in a form approved by the attorney general, together with: instructions on how to obtain copies of the entire text of the statutes; the electronic address for the general assembly's web site; and a disclaimer that the information sheet is not legal advice and that, in the case of any inconsistency between the information sheet and the statutes, the statutes control.

Connecticut

H.B. 5508

Failed Joint Favorable deadline 4/13/15

Allows a court-appointed foreclosure committee, charged with the sale and auction of real estate being foreclosed, to recoup committee expenses and fees when the real estate owner files bankruptcy and seeks to discharge all expenses and debts, including the fees and expenses of the foreclosure committee.

Connecticut

H.B. 5971

Failed Joint Favorable deadline 3/30/15

Allows municipalities to levy blight-related fines on senior mortgagees in order to decrease the amount of blighted properties in Connecticut.

Connecticut

H.B. 6201

Failed Joint Favorable deadline 4/13/15

Provides an incentive for lenders to demonstrate good faith in foreclosure mediation proceedings.

Connecticut

H.B. 6551

Passed House 5/12/15

This bill increases the civil penalties for failure to register residential property (1) subject to a foreclosure action or (2) obtained through foreclosure. The bill increases, from $100 to $1,000, the penalty for noncompliant plaintiffs in a foreclosure action. It increases, from $250 to $1,250, the penalty for noncompliant owners who take title through foreclosure. The bill does not change the maximum cumulative penalties municipalities can assess against these entities.

Connecticut

H.B. 6751

Failed Joint Favorable deadline 3/12/15

Ensures that no new foreclosure mediations are accepted into the program after July 1, 2016, and allows program staff to efficiently expedite the resolution of ongoing mediations prior to the statutorily mandated sunsetting of the program.

Connecticut

H.B. 6752

Signed by governor 6/23/15, Public Act 15-124
Extends the state's foreclosure mediation program by two years, until June 30, 2016, and makes other program-related changes.
Connecticut

H.B. 6762

This bill makes the state's foreclosure mediation program permanent. Under current law, the program would sunset on June 30, 2016.

Connecticut

H.B. 6782

Failed Joint Favorable deadline 4/13/15

Eliminates the sunset date for the foreclosure mediation program.

Connecticut

H.B. 7032

Failed Joint Favorable deadline 4/13/15

Provides an incentive for mortgagees to demonstrate good faith in foreclosure mediation programs.

Connecticut

S.B. 89

Failed Joint Favorable deadline 3/12/15

Requires the Banking commissioner to conduct a study on streamlining the process for the transfer of certain properties with underwater, delinquent or foreclosed mortgages to reduce the excess housing stock.

Connecticut

S.B. 884

Failed Joint Favorable deadline 3/12/15

Makes technical changes to the statute concerning prohibited acts of mortgage servicers, and to repeal the certificate of good standing requirement in the foreclosure mediation program.

Delaware

S.B. 66

Signed by governor 8/11/15, Chapter 155

This Act will allow any Delaware jurisdiction with a long-term residential vacancy rate above three percent, including a county, to form a land bank, where such jurisdiction determines that a land bank would help it address the problem of vacant and abandoned real property within its jurisdiction. A land bank is a non-profit organization created by a political subdivision of the state, or through an intergovernmental agreement between two or more political subdivisions of the state, and would serve as the repository for vacant, abandoned and tax-delinquent properties that, left unaddressed, can contribute to crime, depress the local real estate market, and deplete the tax base of Delaware’s communities. A land bank would have the authority to obtain such properties at sheriff’s sales instituted by the jurisdiction that established the land bank, where such properties have been abandoned by their owners because of unpaid property taxes or substantial liens arising from property code violations. The land bank would have the ability to do one or more of the following: (1) purchase liens from the local jurisdiction; (2) acquire properties at a sheriff’s sale on credit from the local jurisdiction; (3) assert a trump bid at a sheriff’s sale that would allow the land bank to acquire abandoned properties for the price of the outstanding liens. The land bank would retain the acquired properties until such time as a suitable and vetted buyer could be found who would be able to return the property to productive use. Funding for land banks created under this Act would come from governmental and private grants, private investments and property sale proceeds. Additionally, any land bank created under this Act could, at the election of the local jurisdiction, be funded through the allocation to the land bank of 50 percent of the real property taxes on the property for a five year period once the property returns to productive use or such other funding sources established by the local jurisdiction. Through this Act, jurisdictions throughout Delaware would have the ability to alleviate the blight caused by vacant, abandoned and tax delinquent properties in the area, and revitalize communities by turning vacant spaces into vibrant places.

District of Columbia

None

 
Florida

H.B. 779

Signed by governor 6/2/15, Chapter 96

Provides that a purchaser taking title to a tenant-occupied residential property following a foreclosure sale takes title to the property subject to the rights of the tenant; specifies the rights of a tenant; authorizes the tenant to remain in possession of the property for 30 days following receipt of written notice; prescribes the form for 30 day notice of termination; establishes requirements for delivery of notice; authorizes the purchaser to apply for a writ of possession if the tenant refuses to vacate the property; provides exceptions; provides for construction.

Florida

S.B. 524

Substituted by H.B. 779 4/23/15

Provides that a purchaser takes title to a tenant-occupied residential property following a foreclosure sale subject to the rights of the tenant; specifies the rights of the tenant; authorizes a tenant to remain in possession of the property for 30 days following receipt of a written notice, etc.

Florida

S.B. 1066

Died in committee 5/1/15

Revises the limitations on the liability of a first mortgagee or its successor or assignee who acquires title to a unit or parcel by foreclosure or by deed in lieu of foreclosure; requires a first mortgagee or its successor or assignee to be liable for all assessments and related costs and fees which accrue from the date of the judgment of foreclosure or deed in lieu of foreclosure, etc.

Georgia

H.B. 31

Relates to foreclosures 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.
Georgia

H.B. 115

Relates 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 short title; provides for a method of payment; provides for a limitation.

Georgia

H.B. 173

Amends §44-14-162.2 of the Official Code of Georgia Annotated, relating to notice of sales made on foreclosure under power of sale, so as to provide for the inclusion of a conspicuous statement regarding the accrual of fines, fees, and taxes on the notice of foreclosure proceedings sent to a debtor.

Georgia

H.B. 322

Signed by governor 5/6/15, Act 145

 

Provides for the recording of deeds under power within a certain time after a foreclosure sale; provides for the assessment and collection of a late filing fee; provides for the remittance of sums collected from such late filing fees.

Guam Not available  
Hawaii

H.B. 132

S.B. 15

Expands the application of mandatory mortgage foreclosure dispute resolution by requiring mortgagees, at the mortgagor's election, to participate in mediation to avoid foreclosure or mitigate damages from foreclosure prior to filing a judicial foreclosure action for property that has been the mortgagor's primary residence for a specified period. Applies the dispute resolution requirement to judicial foreclosure actions filed prior to the effective date of this measure and pending an initial court hearing. Appropriates funds.

Hawaii

H.B. 371

S.B. 1192

Prohibits a mortgage creditor from executing on any asset of the debtor beyond the asset that is secured by the mortgage.

Hawaii

H.B. 924

S.B. 1093

Signed by governor 5/28/15, Act 62

Updates mortgage servicer licensing and regulatory requirements including crediting of payments, payment of taxes and insurance, delinquencies and loss mitigation efforts, borrower complaints, fee and information disclosures, record maintenance, assignment of servicing rights, and prohibited activities.

Idaho None  
Illinois

H.B. 22

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

Illinois

H.B. 23

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

Illinois

H.B. 279

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

Illinois

H.B. 280

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

Illinois

H.B. 486

Amends the Condominium Property Act. Defines "regular monthly assessments". Provides that following a foreclosure sale, consent foreclosure, common law strict foreclosure, or the delivery of a deed in lieu of foreclosure, the mortgagee shall have the duty to pay to the association all moneys due to satisfy the lien held by the association, except for the 9 months of unpaid regular monthly assessments and associated attorney's fees which may be collected from the purchaser. Provides that the amount due may include any attorney's fees and court costs, but may not exceed 9 months of regular assessments due over the same 9-month period. Deletes language providing that the purchaser shall have the duty to pay the proportionate share, if any, of the common expenses for the unit which would have become due in the absence of any assessment acceleration for the 6 months immediately preceding the institution of an action to enforce the collection of assessments, and which remain unpaid. Deletes language providing that if the outstanding assessments are paid at any time during an action to enforce the collection of assessments, the purchaser shall have no obligation to pay any assessments which accrued before he or she acquired title. Provides that the notice of a foreclosure sale of a condominium unit shall state that a purchaser, other than a mortgagee, shall pay to the association any unpaid monthly assessments for the 9-month period preceding the sale, including attorney's fees and court costs. Provides that each notice of a judicial sale a condominium unit and each disclosure statement issued to a prospective purchaser shall list the required fees. Provides that in certain situations, the Board of Managers (instead of the owner) of a condominium unit must make specified information available within 21 days of the request if the association is self-managed, and within 14 days if managed by a community association management firm or a community association manager as those terms are defined in the Community Association Manager Licensing and Disciplinary Act (instead of "upon demand") and may do so either electronically or in writing. Makes other changes.

Illinois

H.B. 1517

Creates the Land Bank Act. Provides that a taxing district may create a land bank by the adoption of an ordinance or resolution. Establishes requirements for the creation of a land bank and a land bank's board of directors and staff. Establishes various powers and duties of a land bank. Provides that the provisions of the Act shall not apply to any land bank in effect before the effective date of the Act.

Illinois

H.B. 2922

Amends the Code of Civil Procedure. Provides that a person commits false representation concerning real estate title, a Class 4 felony, when he or she knowingly, as part of any transaction or legal proceeding under the Mortgage Foreclosure Article of the Code, claims an interest in real estate or executes, notarizes, or records a fraudulent real estate document. Provides that a person commits a pattern of making false representations concerning real estate title, a Class 3 felony, by committing false representation concerning title to real estate in 2 or more instances with a similar pattern or purpose which are not isolated incidents within the preceding 4 years and in which the aggregate loss or intended loss is more than $250. Provides that the attorney general has a private right of action for civil penalties arising from such conduct. Provides that if a person does not correct the false representation within 20 days of a written request to do so, the owner or holder of the beneficial interest in real estate which is the subject of a false representation concerning real estate title may bring a civil action in the circuit court in the county in which the real estate is located to recover damages suffered by the owner or holder of the beneficial interest plus reasonable attorney's fees.

Illinois

H.B. 3966

Amends the Code of Civil Procedure. Provides that in a foreclosure proceeding and up to 90 days after the date of the order confirming the sale, a mortgagee-in-possession of the mortgaged real estate, a receiver, a holder of the certificate of sale or deed, or the purchaser may file a supplemental petition for possession against an occupant of the property who is a squatter. Provides procedural requirements. Provides that the court shall enter a final ruling on the petition no later than 180 days after it is filed, and that the sheriff shall evict the squatter as soon as practicable after the entry of an order granting possession.

Illinois

H.B. 4077

Creates the Land Bank Act. Provides that a taxing district may create a land bank by the adoption of an ordinance or resolution. Establishes requirements for the creation of a land bank and a land bank's board of directors and staff. Establishes various powers and duties of a land bank. Provides that the provisions of the Act shall not apply to any land bank in effect before the effective date of the Act.

Illinois

S.B. 155

Signed by governor 12/17/15, Public Act 99-0493

Amends the Mortgage Foreclosure Article of the Code of Civil Procedure. Provides that portions of the section concerning the judicial sale fee for the Abandoned Residential Property Municipality Relief Fund become inoperative on Jan. 1, 2017 (instead of Jan. 1, 2016). Repeals the section on March 2, 2017 (instead of March 2, 2016).

Illinois

S.B. 735

Signed by governor 7/10/15, Public Act 99-0024

Amends the Mortgage Foreclosure Article of the Code of Civil Procedure. In provisions outlining under which circumstances the court is not required to appoint a special representative for a deceased mortgagor for the purpose of defending the action, adds situations where there is a: (i) beneficiary under a transfer on death instrument; (ii) person or entity that was conveyed title to the property by the deceased mortgagor prior to death; (iii) person or entity that was conveyed title to the property under the administration of the deceased's estate; or (iv) trust that was conveyed title to the property.

Illinois

S.B. 1310

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

Illinois

S.B. 1368

Amends the Condominium Property Act. Defines "regular monthly assessments". Provides that following a foreclosure sale, consent foreclosure, common law strict foreclosure, or the delivery of a deed in lieu of foreclosure, the mortgagee shall have the duty to pay to the association all moneys due to satisfy the lien held by the association, except for the 9 months of unpaid regular monthly assessments and associated attorney's fees which may be collected from the purchaser. Provides that the amount due may include any attorney's fees and court costs, but may not exceed 9 months of regular assessments due over the same 9-month period. Deletes language providing that the purchaser shall have the duty to pay the proportionate share, if any, of the common expenses for the unit which would have become due in the absence of any assessment acceleration for the 6 months immediately preceding the institution of an action to enforce the collection of assessments, and which remain unpaid. Deletes language providing that if the outstanding assessments are paid at any time during an action to enforce the collection of assessments, the purchaser shall have no obligation to pay any assessments which accrued before he or she acquired title. Provides that the notice of a foreclosure sale of a condominium unit shall state that a purchaser, other than a mortgagee, shall pay to the association any unpaid monthly assessments for the 9-month period preceding the sale, including attorney's fees and court costs. Provides that each notice of a judicial sale a condominium unit and each disclosure statement issued to a prospective purchaser shall list the required fees. Provides that in certain situations, the Board of Managers (instead of the owner) of a condominium unit must make specified information available within 21 days of the request if the association is self-managed, and within 14 days if managed by a community association management firm or a community association manager as those terms are defined in the Community Association Manager Licensing and Disciplinary Act (instead of "upon demand") and may do so either electronically or in writing. Makes other changes.

Illinois

S.B. 1487

Signed by governor 8/21/15, Public Act 99-0439

Provides that the recorder of deeds in certain counties shall establish a pilot program that permits documents to be recorded against a property in foreclosure by judicial order only; relates to the procedures for limiting the recording of documents, erroneous recording of documents, immunity of the recorder, mechanic lien claimants, and other related matters.

Indiana

H.B. 1411

Requires a court, in a mortgage foreclosure action with respect to an occupied dwelling, to consider evidence concerning the effect of the foreclosure. Requires the court to withhold entry of judgment in a foreclosure action for 180 days if the court finds: (1) entry of a judgment of foreclosure will have a negative effect on the occupant or neighborhood or may lead to the house becoming vacant; and (2) there is a reasonable possibility that withholding entry of judgment in a foreclosure action will reduce the negative effects. Permits a court to require a mortgagee to rent a dwelling to the debtor after entry of the judgment of foreclosure if the mortgagee does not intend to file a praecipe for sale within 60 days after entry of the judgment and certain other conditions are met. Provides that certain maintenance obligations that apply to landlords do not apply to a mortgagee-landlord.

Indiana

H.B. 1421

Provides that, at any time after a judgment and decree of sale is entered in an action to foreclose a mortgage on an interest in real property, a purchaser or an omitted lienholder may bring a civil action to: (1) determine the extent of the omitted lienholder's interest; (2) determine the amount of the proceeds from the judicial sale to which the omitted lienholder may be entitled; (3) determine the liability and the extent of liability due to negligent misrepresentation, professional malpractice, or negligence on the part of a participant in the foreclosure action who, in the course  of the participant's business, profession, or employment, supplied false information for the guidance of the parties to the transaction or failed to exercise reasonable care or competence in obtaining or communicating the information; and (4) terminate the interest of an omitted lienholder in the property subject to the sale.

Indiana

H.B. 1567

Establishes the abandoned or foreclosed property rehabilitation financing program (program) to provide rehabilitation loans to finance the purchase and rehabilitation of abandoned or foreclosed property. Provides that the housing and community development authority (authority) shall administer the program. Allows a lender that: (1) is authorized to originate, service, or otherwise aid in the financing of residential mortgage loans in Indiana; and (2) meets the standards for program participation established by the authority; to be an approved lender under the program for the purpose of making rehabilitation loans to eligible persons. Specifies that a rehabilitation loan is a first lien mortgage loan that is: (1) issued by an approved lender for the purpose of purchasing and rehabilitating abandoned or foreclosed property; (2) guaranteed by the authority; (3) a zero or low interest loan; (4) for a term of years determined or approved by the authority; and (5) repayable in installments or, at the option of the mortgagor, repayable when the mortgagor sells or transfers the mortgagor's interest in the property. Requires the authority to establish, not later than Jan. 1, 2016, policies and procedures to implement and administer the program. Allows the authority to adopt rules to establish the policies and procedures to implement and administer the program. Establishes the abandoned or foreclosed property rehabilitation financing account within the state general fund to provide funds to: (1) guarantee rehabilitation loans under the program; and (2) pay the authority's expenses in establishing and administering the program.

Indiana

H.B. 1588

Amends the statute governing the foreclosure of mortgaged real estate to permit an enforcement authority that has issued an abatement order with respect to foreclosed property to file a praecipe for a sheriff's sale of the property if a person files a praecipe for sale, cancels the sale, and a sale does not take place within 180 days after the later of: (1) the filing of the judgment and decree; or (2) the elapse of three months after the date the complaint was filed.

Indiana

H.R. 54

Adopted 4/14/15

Urges the legislative council to assign to the appropriate study committee the topic of mortgage foreclosure prevention programs in operation in Indiana and related processes that relate to mortgage foreclosure.

Indiana

S.B. 409

Extends the mortgage foreclosure counseling and education court fee until July 1, 2017.

Indiana

S.B. 415

Signed by governor 5/6/15, Public Law 247

Provides that a county, city, or town fiscal body may adopt an ordinance to establish a deduction period for rehabilitated property that has also been determined to be abandoned or vacant. Specifies that there must be delinquent property taxes or special assessments on real property before it may be sold by the county treasurer as abandoned or vacant property. Provides that an order of a local building standards hearing authority that real property is abandoned or vacant and nonpayment of the associated penalty permits the executive of the county, city, or town to certify to the county auditor that the real property should be sold as abandoned or vacant property. Specifies that the county treasurer and not the county auditor is to auction abandoned or vacant property. Eliminates the concept of redemption after sale regarding abandoned or vacant property to be sold by the county treasurer. Provides that the county, city, or town executive that certifies a property as abandoned or vacant has an option to take ownership of the property if the minimum bid is not received. Prohibits owners of property that was found to be vacant or abandoned in any county, from buying property at a tax sale. Provides for the following: (1) Removal of properties not suitable for tax sale from the tax sale list. (2) A redemption period of 120 days from the date of the tax sale from which the property was removed. (3) Notice of removal of property from the tax sale list. Eliminates a provision that permitted the county auditor to be the only signer of a sales disclosure form in the case of a tax sale because the sale disclosure form is not required for a tax sale. Prohibits business associations that have not registered with the secretary of state from participating in the tax sale. Specifies that any form of registration by a business entity with the secretary of state allows the business entity to participate in a tax sale. Separates out several provisions concerning abandoned and vacant property sales from delinquent tax sales and makes related changes. Moves certain provisions concerning determinations of abandonment from the property law to the local government law. Requires that notifications of unsafe building law orders state that a property may be determined to be abandoned during administrative proceedings. Provides for hearings to review civil penalties imposed at enforcement proceedings. Provides for civil penalties if a property owner does not comply with a repair order when a hearing was not requested. Provides for administrative approval of costs of emergency action. Provides for appeals of a hearing authority's determination of abandonment and in approving costs for emergency actions. Provides that the costs of emergency actions may be collected in the same way other unsafe building law costs are collected. Establishes additional provisions for receiverships of abandoned properties. Requires recording of civil penalty orders issued by an enforcement authority. Provides that procedures that apply to judicial determination of abandonment apply to determinations of abandonment in administrative proceedings. Provides that a hearing authority may use the same standards that are used by a court in finding that real property is abandoned or vacant for purposes of selling the real property at an abandoned and vacant property sale. Permits a county, city, or town executive to use the courts instead of a hearing authority for the determination that a property is abandoned or vacant. Adds a requirement to issue a judgment when property is found to be abandoned. Extends the mortgage foreclosure counseling and education court fee until July 1, 2017. Provides that certain actions of political subdivisions relating to mortgage foreclosure are preempted by Indiana law. Allows the disposing agent of any county to sell or transfer certain properties for no compensation or a nominal fee to a nonprofit corporation created for agricultural, educational, or recreational purposes. (Current law provides the authority to only Grant County.) Makes technical corrections.

Iowa

H.F. 477

Current law provides that a creditor of a service member who, prior to entering military service, entered into a mortgage contract with the service member for the purchase of real or personal property shall not foreclose on the mortgage or repossess the property for nonpayment or for any breach during the service member’s military service without an order from a court of competent jurisdiction. The bill extends this protection against mortgage foreclosures for nine months after the service member’s release or discharge from military service.

Kansas S.B. 63

Passed Senate 3/24/15

Allows the governing body of any municipality that levied special assessments on property acquired by a land bank to enter into an agreement with the land bank to defer or reamortize all or part of the special assessments.

Kentucky

H.B. 436

Withdrawn 2/13/15

Relates to nonjudicial foreclosure; codifies provisions for the creation, administration, modification, termination, and validity of deeds of trust with various sections to address definitions and general provisions regarding the sale of property secured by a deed of trust; provides that deeds of trust shall be recorded pursuant to specified KRS chapter; establishes who may act as a trustee subject to the laws of this state.

Kentucky

H.B. 470

Withdrawn 2/26/15

Relates to nonjudicial foreclosures; establishes the Nonjudicial Foreclosure Act; codifies provisions for the creation, administration, modification, termination, and validity of deeds of trust; addresses definitions; contains general provisions regarding the sale of property secured by a deed of trust; establishes who may act as a trustee subject to the laws of this state.

Louisiana

None

 

Maine

L.D. 111

Vetoed by governor 6/26/15

This bill requires that the notice of right to cure and all other notices and correspondence sent by a mortgagee to the mortgagor in a foreclosure action must be sent by certified mail.

Maine

L.D. 276

Signed by governor 6/5/15, Public Chapter 147

 
Maine

L.D. 401

Vetoed by governor 6/19/15

Veto overridden 6/22/15, Public Chapter 229

Provides that a mortgage complaint must be dismissed if it fails to state a claim upon which relief can be granted; makes a foreclosure case subject to dismissal if it does not include a certification of proof of the owner of the mortgage note; requires the identification at the beginning of the lawsuit when the parties most need that information as they engage in mediation and loan modification efforts.

Maine

L.D. 630

Signed by governor 4/29/15, Public Chapter 36

Clarifies requirements for a notice of the right to cure a mortgage default; requires itemization, the total amount due to cure the default, names of counseling agencies and a statement that the total amount due does not include any amounts that become due after the date of the notice.

Maine

L.D. 643

This bill extends the time period for a right to cure a mortgage default from 35 days to six months for a veteran who served on active duty during the previous 12 months.

Maine

L.D. 735

This bill provides Maine consumers with an opportunity to avoid home mortgage foreclosure by participating in mediation at an early stage of default before foreclosure has commenced. A mortgagee may request a mortgagor to participate in preforeclosure mediation if the property subject to the mortgage is owner-occupied residential property of four or fewer units, and the mortgage payment is at least 35 days late. A mortgagor who participates or who fails or refuses to participate in the preforeclosure mediation program is not entitled to participate in the existing foreclosure mediation program. Current law provides for foreclosure mediation only after a foreclosure has been filed in court.

Maine

L.D. 776

Vetoed by governor 6/8/15

Veto overridden 6/10/15, Public Chapter 157

Updates the laws that validate real estate titles despite the presence of certain technical defects in related documents to cure defects occurring during a specified time period.

Maine

L.D. 846

Vetoed by governor 6/22/15

Veto overridden 6/23/15, Public Chapter 243

Provides a process for a plaintiff in a foreclosure by civil action to seek an expedited final hearing; provides what the request must indicate; provides the request must be accompanied by a consent form informing defendants they may consult with an attorney or housing counselor before consenting to a hearing; provides the procedures for the proper request for an expedited court hearing; provides the burden of proof requirements are the same as for other foreclosure actions.

Maine

L.D. 920

Vetoed by governor 6/26/15

This bill requires servicers of residential mortgage loans to act in good faith when dealing with homeowners who are borrowers under those loans. The bill also makes changes in the foreclosure mediation process providing that, if courts have previously sanctioned the conduct of a mortgage servicer in a foreclosure process, the courts are authorized to directly sanction the mortgage servicer if the mortgage servicer's conduct evidences a failure to mediate in good faith. The bill requires the collection of data on sanctions imposed to provide that, when a mortgage servicer is found to have failed to act in good faith, the court may take into account previous conduct in determining a sanction sufficient to deter such conduct in the same case or future cases.

Maine

L.D. 994

This bill establishes a six-month lien for condominium association assessments that takes priority over a first mortgage.

Maine

L.D. 1147

Vetoed by governor 6/19/15

This bill clarifies certain aspects of the post-foreclosure sale process. The bill imposes upon the mortgage holder who starts the foreclosure the burden of being treated as the owner of the property, and thus the party with the burden of maintaining it. With this responsibility, foreclosing parties may be more likely to complete the foreclosure process and proceed to foreclosure sales. The bill imposes a deadline of 45 days after the completion of the foreclosure sale for the filing of the report of sale, so that, in those instances where a deficiency judgment is being sought, the homeowner will be put on notice of that fact shortly after the sale process is completed.

Maine

L.D. 1203

Vetoed by governor 6/26/15

Veto overridden 6/30/15, Public Chapter 276

Authorizes municipalities to provide for the care, maintenance and security of abandoned properties without adoption of an ordinance; retains certain provisions regarding how abandonment is determined; allows municipalities to recover their cost of maintaining abandoned properties through the application of a supplemental tax; gives responsible parties a certain number of days to correct identified property defects; requires lenders to notify municipalities of the initiation of a foreclosure proceeding.

Maryland

H.B. 372

Requires specified mortgage lenders to inspect specified residential properties for evidence of abandonment under specified circumstances; requires specified mortgage lenders to maintain vacant and abandoned property in a specified manner; requires the Department of Labor, Licensing, and Regulation to establish and maintain a Vacant and Abandoned Property Registry for specified property; establishes the Vacant and Abandoned Property Registry Fund as a special, nonlapsing fund administered by the Department; etc.

Maryland

H.B. 840

Prohibits a secured party from obtaining a deficiency judgment in an action to foreclose a mortgage or deed of trust on specified owner-occupied residential property that was recorded on or after Oct. 1, 2015.

Maryland

H.B. 929
S.B. 756

Requires the court to send the mortgagor or grantor a specified checklist when a specified foreclosure action is filed in Prince George's County; prohibits a lender from maintaining an action to foreclose a mortgage or deed of trust on residential real property in Prince George's County for six months; requires the Office of the Attorney General to study specified matters relating to foreclosure actions and report the findings to the General Assembly on or before July 1, 2016; terminates specified provisions of the Act; etc.

Maryland

H.B. 935

Signed by governor 5/12/15, Chapter 289

Authorizes the governing body of Prince George's County to file a complaint to foreclose all rights of redemption in abandoned property consisting of a vacant lot or improved property cited as vacant and unfit for habitation on a housing or building violation notice at any time after the date of sale.

Maryland

H.B. 1168

Makes it mandatory, rather than discretionary, for a secured party to offer prefile mediation to a mortgagor or grantor before filing an action to foreclose a mortgage or deed of trust on specified residential property; etc.

Maryland

H.B. 1184

S.B. 835

Prohibits a lender from maintaining an action to foreclose a mortgage or deed of trust on residential property in the state for a specified period of time; requires the Office of the Attorney General to study, evaluate, and make recommendations regarding specified foreclosure alternatives and report its findings to the General Assembly on or before Jan. 1, 2016; and provides for the termination of specified provisions of the Act.

Maryland

H.B. 1195

S.B. 877

Prohibits a secured party from obtaining a deficiency judgment or taking any other action to collect a deficiency in an action to foreclose a mortgage or deed of trust on owner-occupied residential property that was recorded on or after Oct. 1, 2015; etc.

Maryland

H.B. 1215

S.B. 876

Alters the requirements for the debt instrument required to be filed with an order to docket or complaint to foreclose a mortgage or deed of trust on residential property; alters the requirements for a lost note affidavit in a residential foreclosure action; provides that a person who knowingly makes a false statement in specified documents required to be filed with a court is guilty of a misdemeanor and if convicted is subject to imprisonment not to exceed one year or a fine not to exceed $10,000 or both; applies the Act prospectively.

Maryland

S.B. 783

Alters the time period, from three years to two years, within which a specified motion for a deficiency judgment must be filed after the final ratification of the auditor's report following a specified foreclosure sale; applies Section 1 of the Act prospectively to any motion for a deficiency judgment filed on or after July 1, 2015, on a deed of trust, mortgage, or promissory note that secures or is secured by residential property that was owner-occupied at the time the order to docket or complaint to foreclose was filed; etc.

Massachusetts

H.B. 831

Relates to mortgage assistance for citizens who are financially unable to make mortgage payments.

Massachusetts

H.B. 835

Establishes a trust fund to protect citizens of the commonwealth and municipalities impacted by the mortgage foreclosure crisis.

Massachusetts

H.B. 888

Requires banks to mediate in good faith with homeowners to identify alternative resolutions before starting foreclosures.

Massachusetts

H.B. 889

Relates to a moratorium on certain foreclosures of mortgages.

Massachusetts

H.B. 1141

Relates to foreclosures in the historic districts of the commonwealth.

Massachusetts

H.B. 1490

Expedites the sale of foreclosed homes.

Massachusetts

H.B. 1498

Relates to vacant property, foreclosed property and property in the process of foreclosure.

Massachusetts

H.B. 1552

Reduces the time within which actions may be taken to recover certain amounts due after a foreclosure.

Massachusetts

H.B. 1579

Protects tenants and prevent vacancies in foreclosed homes.

Massachusetts

H.B. 1586

Relates to the procedures for notices of foreclosed properties.

Massachusetts

H.B. 1599

Requires judicial review of foreclosures on residential mortgages.

Massachusetts

H.B. 1640

Relates to Superior Court foreclosure procedures.

Massachusetts

H.B. 1860

Authorizes municipalities to implement an abandoned property registration and security program.

Massachusetts

H.B. 2607

Substituted by H.B. 3770 9/28/15

Provides a tax deduction for income attributable to the discharge of debt on principal residences, including debt reduced through mortgage restructuring.

Massachusetts

H.B. 2608

Relates to taxable income after the short sale of mortgaged property.

Massachusetts

H.B. 3770

Provides for a tax deduction for income attributable to the discharge of debt on principal residences including debt reduced through mortgage restructuring.

Massachusetts

H.B. 3805

Relates to clearing titles to foreclosed properties.

Massachusetts

H.B. 3809

Relates to clearing titles to foreclosed properties.

Massachusetts

S.B. 482

Relates to alternatives to foreclosure.

Massachusetts

S.B. 554

Relates to vacated foreclosed residential property.

Massachusetts

S.B. 807

Prevents unnecessary vacancies in foreclosed homes.

Massachusetts

S.B. 852

Amends the foreclosure statute to require judicial foreclosure.

Massachusetts

S.B. 871

Establishes a foreclosure review division of the Superior Court.

Massachusetts

S.B. 882

See S.B. 1981 9/17/15

Relates to clearing titles to foreclosed properties.

Massachusetts

S.B. 1090

Relates to vacant, foreclosing and foreclosed property in the commonwealth.

Massachusetts

S.B. 1521

See H.B. 3770 9/28/15

Relates to discharge of indebtedness of principal residence from gross income.

Massachusetts

S.B. 1981

See S.B. 2015 9/17/15

Further regulates the clearing of title to certain foreclosed properties.

Massachusetts

S.B. 2015

Signed by governor 11/25/15, Chapter 141

Further regulates the clearing of title to certain foreclosed properties.

Massachusetts

S.B. 2057

Further regulates the clearing of title to certain foreclosed properties; provides that divisions of the housing court department shall have jurisdiction of defenses or counterclaims by any party entitled to notice of sale or by any party entitled to said notice of sale and who continues to occupy the mortgaged premises; requires recording in the registry of deeds.

Michigan None

 

Minnesota

H.F. 113

Requires that a mortgagee shall, after the expiration of the redemption period after foreclosure of a residential mortgage, offer the property for sale to the former owner at a price no higher than the price the mortgagee could reasonably expect to obtain in an arms-length sale and include in the offer financing for purchase of the property by the former owner at the lowest interest rate then available from the lender. The offer must be available for at least 60 days. The monthly payment must not exceed the guidelines of the U.S. Department of Housing and Urban Development.

Minnesota

H.F. 114

Provides that upon request and proof of eligibility provided by the mortgagor, a mortgagee shall defer commencement or continuation of a mortgage foreclosure for at least 12 months for mortgagors: (1) who have lived in their current home that is subject to the mortgage for at least 10 years; and (2) at least one of whom is unemployed and eligible for unemployment compensation or whose eligibility for it has expired.

Minnesota

H.F. 124

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.

Minnesota

H.F. 144

Provides a grant for funding for mortgage foreclosure counseling.

Minnesota

H.F. 953

Indefinitely postponed 4/16/15

S.F. 1147

Signed by governor 5/1/15, Chapter 14

Clarifies the mortgage foreclosure by advertisement publication requirements.

Minnesota

H.F. 1187

Indefinitely postponed 5/11/15

S.F. 1587

Signed by governor 5/19/15, Chapter 50

Extends the protection of the equity-stripping law to owners of agricultural property.

Minnesota

H.F. 1472

Indefinitely postponed 4/14/15

S.F. 1444

Signed by governor 5/1/15, Chapter 13

Clarifies provisions relating to foreclosure sales.

Mississippi

H.B. 233

Died in committee 2/3/15

Establishes, as an alternative to any other foreclosure procedure authorized by law, procedures for the foreclosure of mortgages by advertisement under which a borrower must be given an opportunity to meet with a lender regarding modification of a mortgage loan on a principal residence before foreclosure proceedings may be begun; prohibits a party from beginning foreclosure proceedings by advertisement if the prescribed procedures have not been followed or the applicable time limits have not expired, or if the parties have agreed to modify the loan and the borrower is not in default; requires a foreclosing party, before proceeding with a foreclosure sale by advertisement, to mail to the borrower a written notice containing specified information, including the name of a designated contact person who will have the authority to make modification agreements and a list of approved housing counselors; allows the borrower to bring an action to enjoin the foreclosure if the required notice was not served; requires the borrower to contact a housing counselor if he or she wishes to work out a modification, and requires the counselor to schedule a meeting with the designated contact person; provides that foreclosure proceedings may not be begun until 90 days after the notice was sent, if the borrower requests a meeting; requires the borrower, the designated person, or the housing counselor to calculate a modified payment if the meeting does not result in an agreement; requires the Mississippi Home Corporation to prepare a list of approved housing counselors; amends §§89-1-55 and 89-1-57 to conform to the provisions of this act; and for related purposes.

Mississippi

H.B. 234

Died in committee 2/3/15

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; and for related purposes.

Mississippi

H.B. 777

Died in committee 2/3/15

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; to provide the procedures to be followed in the program.

Mississippi

H.B. 789

Died in committee 2/3/15

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.

Mississippi

S.B. 2742

Died in committee 2/3/15

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. 526

This bill repeals the provisions regarding nonjudicial foreclosure proceedings and requires, beginning August 28, 2015, all foreclosure proceedings to be handled judicially as specified in §§443.190 to 443.280, RSMo.

Missouri

H.B. 652

This bill authorizes St. Joseph to establish a land bank agency for the management, sale, transfer, and other disposition of interests in real estate owned by the land bank agency.

Missouri

H.B. 1211

This bill establishes the Mortgage Foreclosure Mediation Code that provides for mediation conferences between lenders and homeowners for the purpose of facilitating a mutually beneficial alternative to foreclosure. Under the bill, a lender may seek a certificate of compliance that permits them to file a foreclosure deed. In order to receive the certificate, a lender must go through the mediation process described in the bill. The process begins with the lender sending a notice of foreclosure and notice of right to request mediation to the homeowner and the mediation coordinator. Upon receiving the notice, the homeowner has the option of requesting mediation for the purpose of facilitating a more beneficial alternative to foreclosure. In the event that a settlement is reached between the lender and homeowner prior to the mediation conference, a copy of the settlement agreement must be sent to the mediation coordinator. Subsequently, the mediation coordinator must issue the lender a certificate of compliance within two business days. In the event that a settlement agreement is reached during the mediation conference, the mediator must submit a copy of the settlement agreement to the mediation coordinator. Subsequently, the mediation coordinator must issue the lender a certificate of compliance within two business days. In the event that the parties fail to reach a settlement agreement, the mediation coordinator must issue a certificate of compliance to the lender if the lender or representative of the lender: (1) Sent the notice of foreclosure and the notice of right to request mediation to the homeowner; (2) Provided all of the necessary paperwork to the homeowner that was required; (3) Had the authority to negotiate and modify the loan in question; and (4) Paid all the required fees. If a lender fails to comply with any of the provisions of the bill, the mediation coordinator must not issue a certificate of compliance to the lender. These provisions must not prohibit any person or entity from exercising the right to carry out a judicial or nonjudicial foreclosure. A lender must file a valid certificate of compliance for the foreclosed residential property with the county assessor before or contemporaneously with the filing of any instrument of conveyance of title to the property with the recorder of deeds. The recorder must not refuse to file any instrument for failure to comply with the requirement.

Missouri

H.B. 1231

This bill requires that after the publication of a notice of foreclosure or a notice of tax sale on any joint tenant, tenant in common, co-owner, or person having an undivided joint, common, or co-interest or title in any lands, buildings, real estate, or real property who fail or refuse to contribute his or her prorata share toward the payment of delinquent real estate taxes or mortgage payments in order to cure a default and to avoid a sale in foreclosure or for delinquent taxes, the person must be divested of his or her rights, title, and interest in the property or his or her share of rights, title, and interest in the property. The party paying the delinquent taxes or mortgage notes that results in the cancellation of the notice of tax or foreclosure sale will be vested in the property and may file an action in the circuit court to declare the defaulting party divested and the paying party vested of the defaulting party's rights, title, and interest in the property.

Missouri

H.B. 1263

This bill establishes the Mortgage Foreclosure Mediation Code that provides for mediation conferences between a lender and a homeowner for the purpose of facilitating a mutually beneficial alternative to foreclosure. The Office of Administration must contract with any person or entity to serve as a mediation coordinator on behalf of the state as specified in the bill. A lender may seek a certificate of compliance, which would permit him or her to file a foreclosure deed. In order to receive a certificate, a lender must go through the mediation process described in the bill. The process begins with the lender sending a notice of right to request mediation to the homeowner and the mediation coordinator. A homeowner has 20 days from the date of the mailing of the notice to request mediation by sending the request form to the mediation coordinator. The responsibilities of the mediator in the process as well as the deadlines for required actions are specified in the bill. In the event that a settlement is reached between the lender and homeowner prior to the mediation conference, a copy of the settlement agreement must be sent to the mediation coordinator, and the mediation coordinator must issue the lender a certificate of compliance within two business days. In the event that a settlement agreement is reached during the mediation conference, the mediator must submit a copy of the settlement agreement to the mediation coordinator within one business day, and the mediation coordinator must issue the lender a certificate of compliance within two business days. In the event that the parties fail to reach a settlement agreement during the mediation conference, the mediation coordinator must issue a certificate of compliance to the lender if the lender or representative of the lender: (1) Sent a notice of foreclosure and notice of right to request mediation to the homeowner; (2) Provided all the required necessary paperwork to the homeowner; (3) Had authority to negotiate and modify the loan in question and the ability to review and approve options for the homeowner's specific type of loan; and (4) Paid all the required fees. If a lender fails to comply with any of the provisions of the bill, the mediation coordinator must not issue a certificate of compliance to the lender. A lender must file a valid certificate of compliance for the foreclosed residential property with the county assessor before or contemporaneously with the filing of any instrument of conveyance of title to the foreclosed property with the recorder of deeds. The recorder must not refuse to file any instrument for failure to comply with the requirement. Any person or entity that has violated these provisions must be assessed a fine of up to $1,000. Any fine assessed against a lender must not be passed on to the homeowner.

Missouri

S.B. 181

This act changes the notice requirement that a new owner must give to a tenant following a foreclosure sale from 10 business days to vacate the premises to 90 days.

Missouri

S.B. 183

This act repeals provisions of law which provide that a sale made by a mortgagee, secured party, or personal representative with power of sale pursuant to a mortgage or security agreement is valid and binding upon the mortgagor and debtor, and that such sale shall foreclose all right and equity of redemption of the property sold. The act provides that beginning Aug. 28, 2015, all foreclosure proceedings shall be handled judicially.

Missouri

S.B. 429

This act creates the Mortgage Foreclosure Mediation Code which provides for mediation conferences between lenders and homeowners for the purpose of facilitating a mutually beneficial alternative to foreclosure. Under the act, lenders may seek a certificate of compliance, which would permit them to file a foreclosure deed. In order to receive such a certificate, lenders must go through the mediation process described in this act. The process begins with the lender sending a notice of foreclosure and notice of right to request mediation to the homeowner and the mediation coordinator. Upon receiving such notices, the homeowner has the option of requesting mediation for the purpose of facilitating a more beneficial alternative to foreclosure. In the event that a settlement is reached between the lender and homeowner prior to the mediation conference, a copy of the settlement agreement shall be sent to the mediation coordinator. Subsequently, the mediation coordinator shall issue the lender a certificate of compliance. In the event that a settlement agreement is reached during the mediation conference, the mediator shall submit a copy of the settlement agreement to the mediation coordinator. Subsequently, the mediation coordinator shall issue the lender a certificate of compliance. In the event that the parties fail to reach a settlement agreement, the mediation coordinator shall nevertheless issue a certificate of compliance to the lender if the lender or representative of the lender (1) sent a notice of foreclosure and notice of right to request mediation to the homeowner; (2) provided all necessary paperwork to the homeowner that was required to be sent by this act; (3) had authority to negotiate and modify the loan in question; and (4) paid all fees required by this act. If a lender fails to comply with any of the provisions of this act, the mediation coordinator shall not issue a certificate of compliance to the lender.

Montana

H.B. 164

Signed by governor 4/9/15, Chapter 213

Revises the disposition of proceeds from a trustee sale; adds additional filing requirements upon deposit of surplus funds with the county clerk and recorder; allows a lienholder to file a petition requesting disbursement of surplus funds from a trustee sale to satisfy the lien; requires the county treasurer to disburse surplus funds according to court order; and amends §71-1-316, MCA.

Nebraska

L.B. 151

Signed by governor 2/26/15

Provide for a person designated to accept city or village notices in cases of mortgaged property or trust deed default.

Nevada

A.B. 183

Signed by governor 5/21/15, Chapter 128

This bill: (1) requires the grantee of real property under an agreement for a deed in lieu of a foreclosure sale to record the conveyance with the appropriate office of the county recorder within 30 days after the date of the conveyance; and (2) makes the grantee liable for attorney’s fees and costs and for certain damages for failure to record such a conveyance.

Nevada

A.B. 195

Signed by governor 5/25/15, Chapter 149

Existing law generally provides that a judgment creditor or a beneficiary of a deed of trust may obtain a deficiency judgment after a foreclosure sale or trustee’s sale of real property if there is a deficiency of the proceeds of the sale and a balance remaining due to the judgment creditor or beneficiary. (NRS 40.455) Existing law further provides that if a person acquired the right to obtain a deficiency judgment from another person, the amount of the deficiency judgment must not exceed the amount of the consideration paid for that right. (NRS 40.459) Sections 1, 3 and 4 of this bill provide that this provision applies only to deficiency judgments awarded on or after the passage and approval of this bill in a deficiency judgment proceeding to enforce: (1) any debt secured by property upon which the debtor or a guarantor or surety of the debt maintains his or her principal residence, there is not more than one residential structure and not more than four families reside; and (2) any debt secured by any other property if the promissory note or guaranty evidencing the debt was fully executed before July 1, 2011. Existing law provides that, under certain circumstances, a money judgment obtained by a creditor with a junior mortgage or lien on real property may not exceed the amount of the consideration paid by the creditor for the right to enforce the obligation secured by the junior mortgage or lien. (NRS 40.4636) Sections 2-4 of this bill provide that this limitation applies only to a money judgment awarded on or after the passage and approval of this bill in a civil action to enforce: (1) any obligation secured by a junior mortgage or lien on real property upon which the debtor or a guarantor or surety of the debt maintains his or her principal residence, there is not more than one residential structure and not more than four families reside; and (2) any obligation secured by a junior mortgage or lien on any other real property if the promissory note or guaranty evidencing the obligation was fully executed before July 1, 2011.

Nevada

A.B. 288

Existing law provides that a signatory to the consent judgment entered in the case entitled U.S. of America et al. v. Bank of America Corporation et al., who complies with the Settlement Term Sheet under that judgment is deemed to be in compliance with certain provisions of state law governing the servicing of residential mortgage loans. However, if that consent judgment is modified or amended to permit compliance with the Final Servicing Rules issued by the federal Consumer Financial Protection Bureau to supersede the terms of the Settlement Term Sheet of the consent judgment: (1) a signatory to the consent judgment who is in compliance with the modified or amended Settlement Term Sheet is deemed to be in compliance with certain provisions of state law governing the servicing of residential mortgage loans; and (2) any other person who complies with the Final Servicing Rules is deemed to be in compliance with those provisions of state law. This bill amends this provision to specifically state that any mortgage servicer, mortgagee, beneficiary of a deed of trust or an authorized agent of such a person is deemed to be in compliance with existing state law if the servicer, mortgagee, beneficiary or authorized agent complies with the Final Servicing Rules. This bill further provides that if the Final Servicing Rules are repealed or held invalid, or otherwise lapse, the servicer, mortgagee, beneficiary or authorized agent is subject to the provisions of state law.

Nevada

S.B. 239

Signed by governor 6/1/15, Chapter 316

Under existing law, within 21 days after receiving notice that a debt secured by a mortgage has been paid or otherwise satisfied or discharged, the mortgagee is required to record a discharge of the mortgage. (NRS 106.290) Existing federal law relating to lending practices also specifies certain circumstances under which a lender may reduce or terminate a home equity line of credit. (Truth in Lending Act, 12 C.F.R. Part 1026) Section 1 of this bill authorizes certain persons to provide a written request to terminate an equity line of credit secured by a deed of trust or mortgage. Section 1 also requires a lender upon receipt of such notice to: (1) terminate the borrower’s right to obtain advances under the equity line of credit; (2) apply certain sums paid to the satisfaction of the equity line of credit; and (3) record a reconveyance or certificate of discharge of the security instrument when the balance becomes zero. Section 1 also authorizes certain persons to provide a written instruction from a borrower to suspend and close an equity line of credit secured by a deed of trust or mortgage. Section 1 provides the content of the written instruction and requires a lender upon receipt of such an instruction to suspend the equity line of credit for a minimum of 30 days. When the lender is in possession of both the instruction and payment, section 1 requires the lender to: (1) close the equity line of credit; and (2) release or reconvey the property securing the equity line of credit. Existing law: (1) prescribes certain qualifications and duties of a trustee under a deed of trust; (2) provides for a civil action against a trustee under certain circumstances; and (3) prohibits a beneficiary from reconveying a deed of trust, unless the beneficiary meets certain qualifications to act as a trustee. (NRS 107.028) Section 2 of this bill: (1) authorizes certain trustees to file a declaration of nonmonetary status if the trustee is named as a party to a civil action under certain circumstances; and (2) authorizes a party to the action to file an objection to a trustee’s declaration of nonmonetary status. If no such objection is timely made or if a court does not determine that an objection is valid, the trustee is no longer required to participate in the action and is not subject to any damages or attorney’s fees or costs. Section 3 of this bill authorizes a beneficiary to substitute and act as trustee for the purpose of partially or fully reconveying a deed of trust. Existing law provides that a sale by the trustee under a deed of trust must be declared void by a court of competent jurisdiction if: (1) the trustee or a person authorized to make the sale does not substantially comply with certain provisions of existing law governing the exercise of the trustee’s power of sale; and (2) an action is commenced in the county where the sale took place within 45 days after the date of the sale or, if the notice of default and election to sell or the notice of sale is not provided to certain persons in accordance with existing law, within 60 days after the person received actual notice of sale. Existing law also requires a trustee or a successful bidder at a trustee’s sale of property to record a trustee’s deed upon sale not later than 30 days after the trustee’s sale of the property. (NRS 107.080) Under section 4 of this bill: (1) not later than five days after a trustee’s deed upon sale is recorded, the trustee or successful bidder at the trustee’s sale must post conspicuously on the property a notice of trustee’s sale, although failure to do so does not affect the validity of a sale to a bona fide purchaser for value without knowledge of the failure; (2) an action to declare void a trustee’s sale must be commenced within 30 days after the recording of the trustee’s deed upon sale or, in certain circumstances, within 90 days after the date of the sale; and (3) after the expiration of the period for commencing an action to declare void a trustee’s sale, any failure to comply with a provision of existing law governing the exercise of the trustee’s power of sale does not affect the rights of a bona fide purchaser.

Nevada

S.B. 306

Signed by governor 5/27/15, Chapter 266

Under existing law, a unit-owners’ association has a lien on a unit for certain amounts due to the association and may foreclose its lien through a nonjudicial foreclosure sale. (NRS 116.3116-116.31168) Generally, the association’s lien is not prior to a first security interest on the unit recorded before the date on which the amount sought to be enforced became delinquent. However, the association’s lien is prior to the first security interest on the unit to the extent of certain maintenance and abatement charges and a certain amount of assessments for common expenses. The portion of the association’s lien that is prior to the first security interest on the unit is commonly referred to as the “super-priority lien.” (NRS 116.3116) In SFR Investments Pool 1, LLC v. U.S. Bank, 130 Nev. Adv. Op. 75, 334 P.3d 408 (2014), the Nevada Supreme Court held that the foreclosure of the super-priority lien by the association extinguishes the first security interest on the unit. This bill amends various provisions governing the association’s super-priority lien and the procedures required for an association to foreclose its lien. Section 1 of this bill authorizes a limited amount of the costs of enforcing the association’s lien to be included in the super-priority lien. Section 1 also specifically states that an association, a member of the association’s executive board, an officer or employee of the association or the community manager of the association is not required to be a licensed debt collection agency or contract with a licensed debt collection agency to collect amounts included in the association’s lien until a notice and default and election to sell the unit to enforce the lien is recorded. Finally, section 1 specifically states that any payment of an amount included in the association’s lien by the holder of a subordinate lien on the unit becomes a debt due from the unit’s owner to the holder of the lien. Sections 2-7 of this bill revise provisions governing the procedures for the foreclosure of the association’s lien. Sections 2-4 revise provisions relating to the notice of the association’s foreclosure required to be given to the holders of recorded security interests on the unit. Under section 3, an association is required to mail by certified mail, not later than 10 days after recording the notice of default and election to sell, a copy of the notice to each holder of a security interest recorded before the association recorded the notice. Section 4 similarly requires the association to mail by certified mail, not later than 10 days after recording notice of the foreclosure sale of the unit, a copy of the notice of sale to each holder of a security interest recorded before the association recorded the notice of sale. Section 2 also: (1) specifically states that the mailing of the copy of the notice of default and election to sell and the copy of the notice of sale to each holder of a recorded security interest is a condition which must be satisfied before the association may sell the unit; and (2) requires the association to record an affidavit stating the name of each holder of a recorded security interest to whom a copy of the notice of default and election to sell and notice of sale was mailed and the address to which those notices were sent. Section 4 further requires the publishing, posting and giving of notice of the foreclosure sale of a unit by an association in a manner similar to the publishing, posting and giving of notice of the nonjudicial foreclosure sale of real property secured by a deed of trust. Sections 5 and 6 revise provisions relating to the foreclosure sale of a unit by an association. Section 5 requires the sale to be conducted at the same location that a nonjudicial foreclosure sale of real property secured by a deed of trust must be conducted. Section 5 also provides that if the sale is postponed by oral proclamation, the sale must be postponed to a later date at the same time and location. However, if the date of sale has been postponed by oral proclamation three times, any new sale information must be provided by giving certain notice of the sale. Finally, section 5 requires the person conducting the sale to announce at the sale whether or not the super-priority lien has been satisfied. Section 6 provides that if the holder of the first security interest pays the amount of the super-priority lien not later than five days before the date of sale, the foreclosure of the association’s lien does not extinguish the first security interest. Section 6 also provides that after a sale of a unit to enforce the association’s lien, the unit’s owner or a holder of a security interest on the unit may redeem the unit by paying certain amounts to the purchaser within 60 days after the sale. If the unit’s owner redeems the unit, the unit’s owner is restored to his or her ownership of the unit subject to any security interest on the unit that existed at the time of the sale. If a holder of a security interest on the unit redeems the unit, that holder becomes the owner of the unit. Section 6 further provides that upon expiration of the redemption period, any failure to comply with the requirements of existing law for the foreclosure of the association’s lien does not affect the rights of a bona fide purchaser or encumbrancer for value. Existing law further provides that if a unit is subject to the Foreclosure Mediation Program, a unit-owners’ association may not foreclose its lien on the unit until the trustee has recorded the required certificate. (NRS 107.086, 116.31162) Section 2 revises the language of existing law and specifies that a unitowners’ association may foreclose its lien on a unit that is subject to the Foreclosure Mediation Program if the unit’s owner has failed to pay amounts that became due to the association during the pendency of the mediation. Section 8 of this bill requires the trustee under a deed of trust to notify the association that a unit is subject to the Foreclosure Mediation Program, and to notify the association that the trustee has received the required certificate from the Program. Section 8.5 of this bill requires a financial institution that is a mortgagee or beneficiary of a deed of trust under certain residential mortgage loans to provide to the Division of Financial Institutions of the Department of Business and Industry the name and street address of a person to whom: (1) a borrower or a borrower’s representative may send information and notices to facilitate a mediation under the Foreclosure Mediation Program; and (2) a unit-owners’ association may mail notices concerning the association’s lien. Under section 8.5, the Division is required to maintain this information on its internet website and provide a prominent display of, or a link to, this information on the home page of its internet website.

Nevada

S.B. 321

Passed Senate 5/27/15

Existing law sets forth procedures governing foreclosures on real property upon default. A trustee under a deed of trust has the power to sell the property to which the deed of trust applies, subject to certain restrictions. One such restriction on the trustee’s power of sale upon default with respect to owner-occupied housing is that a trustee must initiate mediation with a grantor of a deed of trust or the person who holds the title of record under which he or she may receive a loan modification. (NRS 107.086) This bill authorizes a mortgagor under a mortgage secured by owner-occupied housing or a grantor or the person who holds the title of record with respect to a deed of trust concerning owner-occupied housing to initiate the mediation process if: (1) a local housing counseling agency approved by the U.S. Department of Housing and Urban Development certifies that the mortgagor, grantor or person who holds the title of record has a documented financial hardship and is in imminent risk of default; (2) the mortgagor, grantor or other person files a form with the Mediation Administrator indicating an election to enter into mediation; and (3) the mortgagor, grantor or other person pays his or her share of the fee for the mediation. Under this bill, if the parties participate in mediation in good faith, the requirement of existing law to participate in mediation before a nonjudicial foreclosure sale of the owner-occupied housing is satisfied.

Nevada

S.B. 453

Signed by governor 6/10/15, Chapter 518

Existing law contains various provisions governing the enforcement of loans secured by deeds of trust or mortgages on real property, including, without limitation, provisions governing actions for the foreclosure of mortgages or deeds of trust, the conduct of foreclosure sales and the award of deficiency judgments, actions by holders of junior mortgages after foreclosure sales, the maintenance of property acquired at a foreclosure sale and the guarantors and sureties. (NRS 40.430-40.495) This bill revises these provisions of existing law. Sections 2-5 and 16 of this bill transfer the definitions of various terms to new sections and apply these definitions to all provisions of existing law governing the enforcement of loans secured by deeds of trust or mortgages on real property. Sections 8-15 of this bill make conforming changes so that the defined terms appear in the appropriate provisions of existing law. Existing law contains the “one action rule,” which generally provides there may be only one action for the recovery of a debt, or the enforcement of a right, secured by a mortgage or other lien on real property, and that the action must be for the foreclosure of the real property securing the debt or obligation. (NRS 40.430) Section 5.5 of this bill specifically provides that this rule is not applicable to an action for declaratory relief to ascertain the identity of the person who is entitled to enforce an instrument evidencing a debt or obligation secured by a mortgage or other lien on real property. Existing law provides that in a judicial foreclosure action concerning owner-occupied property, the mortgagor may elect to participate in the Foreclosure Mediation Program. (NRS 40.437) Section 6 of this bill incorporates in this provision the statutory changes made to the Foreclosure Mediation Program during the 2013 Legislative Session, and clarifies that a mortgagor, a grantor of a deed of trust or the person who holds title of record may enroll in the Program when a judicial foreclosure action is filed against him or her. Section 7 of this bill revises the language of the provision of existing law governing the disposition of surplus money after a foreclosure sale to clarify the language and use terms that are defined in existing law.

Under existing law, to obtain a deficiency judgment after a foreclosure sale, a creditor must file an application with the court within six months after the date of the foreclosure sale. (NRS 40.455) Existing law further provides that in certain circumstances a creditor may bring an action against a guarantor, surety or other obligor who is not the borrower to enforce the obligation to pay, satisfy or purchase all or part of the obligation secured by a mortgage or lien on real property. (NRS 40.495) Section 8 provides that the complaint or other pleading in this action constitutes the application for a deficiency judgment and, thus, the creditor is not required to file an application for a deficiency judgment after the foreclosure sale. Existing law contains two sections which require a person who purchases or acquires vacant residential property at a foreclosure sale to maintain the property in accordance with certain standards. (NRS 40.464, 107.110) Sections 12 and 16 combine these provisions into one section.

Nevada

S.B. 512

Signed by governor 6/10/15, Chapter 517

Existing law provides for the establishment of a foreclosure mediation program and generally requires that mediation, unless waived, be conducted as a condition of a judicial foreclosure proceeding or the exercise of a power of sale affecting owner-occupied housing. The Nevada Supreme Court is required to adopt rules to implement the program. (NRS 40.437, 107.086) Existing law also creates the Account for Foreclosure Mediation, the money in which may be expended only for the purpose of supporting the program. (NRS 107.080) Section 1 of this bill authorizes a mortgagor under a mortgage secured by owner-occupied housing or a grantor or the person who holds the title of record with respect to a deed of trust concerning owner-occupied housing to initiate the mediation process if: (1) a local housing counseling agency approved by the U.S. Department of Housing and Urban Development certifies that the mortgagor, grantor or person who holds the title of record has a documented financial hardship and is in imminent risk of default; (2) the mortgagor, grantor or other person files a form with the Mediation Administrator indicating an election to enter into mediation; and (3) the mortgagor, grantor or other person pays his or her share of the fee for the mediation. Under this bill, if the parties participate in mediation in good faith, the requirement of existing law to participate in mediation before a nonjudicial foreclosure sale of the owner-occupied housing is satisfied. Section 10.5 of this bill authorizes the court administrator, under certain circumstances, to submit to the Interim Finance Committee a request for an allocation from the Contingency Account created by NRS 353.266 for deposit in the Account for Foreclosure Mediation. Section 12 of this bill repeals the existing statutes providing for the foreclosure mediation program, effective on June 30, 2017, effectively ending the program on that date. Section 1 also expires by limitation on that date. Under sections 1, 2.5 and 8.5 of this bill, Dec. 31, 2016, is the last date on which a homeowner can enroll in the foreclosure mediation program. Persons initiating foreclosures after Dec. 1, 2016, need not provide notice of the mediation program. Sections 1.5, 2, 3-8, 9, 10 and 11 of this bill make conforming changes.

New Hampshire

H.B. 157

Failed to pass House 3/11/15

This bill permits a unit owner’s association to enforce an outstanding lien for assessments by bringing an action to foreclose on the property. The bill also provides that attempts to waive liability for common expenses of the association shall be unenforceable.

New Hampshire

S.B. 50

Signed by governor 6/26/15, Chapter 177

This bill extends the notice required prior to foreclosure of residential property. The bill also requires a mortgage foreclosure notice to include contact information for the mortgagee and banking department.

New Hampshire

S.B. 51

Failed to pass Senate 3/26/15

This bill establishes a six-year statute of limitations for recovery of a deficiency judgment after a mortgage foreclosure. The bill requests a commission to study New Hampshire mortgage foreclosure law, established in RSA 479:21-a (2014, 198).

New Hampshire

S.B. 52

Failed to pass House 6/3/15

This bill establishes a committee to study the issue of residential tenancies in foreclosed properties.

New Hampshire

S.B. 158

This bill extends the foreclosure notice required prior to the sale of residential property from 25 days to 45 days.

New Jersey

A.B. 232

S.B. 2544

Establishes process for consideration of offers from short sale buyers during residential mortgage foreclosures.

New Jersey

A.B. 3240

S.B. 2085

Passed Senate 2/5/15

Requires certification of diligent inquiry in residential mortgage foreclosure actions to be filed by attorneys.

New Jersey

A.B. 3357

Signed by governor 2/5/15, Chapter 16

S.B. 2609

Substituted 12/18/14

Authorizes tax lien holders other than municipalities to institute in rem tax foreclosure actions against abandoned properties.

New Jersey

A.B. 3793

S.B. 2545

Passed Senate 1/11/16

 

Concerns expedited process for foreclosing vacant and abandoned residential properties in uncontested actions.

New Jersey

A.B. 3837

Substituted 12/3/15

S.B. 1346

Signed by governor 1/19/16, Chapter 225

Provides it is the responsibility of a mortgage servicer to provide each mortgagor the name, address, and telephone number of the mortgage servicer; provides a mortgagor who is misinformed of the identity of the mortgage servicer through fraud or error and who pays a mortgage servicer in error is not required to make an additional payment to the actual mortgage servicer; states that a payment made to the wrong mortgage servicer due to fraud or misinformation may not be the basis for any foreclosure action.

New Jersey

A.B. 3971

Passed Assembly 12/17/15

S.B. 2570

Extends post-military service protection against mortgage foreclosure.

New Jersey

A.B. 4075

S.B. 2679

Provides expedited procedure for foreclosing residential properties in uncontested actions.

New Jersey

A.B. 4139

Substituted 12/17/15

S.B. 2577

Vetoed by governor 1/11/16

Establishes temporary mortgage relief programs for certain owners of real property impacted by “Superstorm Sandy.”

New Jersey

A.B. 4172

S.B. 2701

Requires creditors to maintain vacant and abandoned non-residential properties under foreclosure.

New Jersey

A.B. 4173

S.B. 2702

Requires creditors to maintain interior of vacant and abandoned residential property under foreclosure.

New Jersey

A.B. 4506

S.B. 296

Codifies the Judiciary's Foreclosure Mediation Program; dedicates monies from foreclosure filing fees and fines.

New Jersey

A.B. 4687

Substituted 1/11/16

S.B. 1436

Pocket veto 1/19/16

Exempts sales to homeowner assistance and recovery programs from realty transfer fees.

New Jersey

A.R. 188

Adopted 3/9/15

S.R. 104

Adopted 12/18/14

Urges President and Congress of the United States to extend the Mortgage Forgiveness Debt Relief Act of 2007.

New Jersey

S.B. 2764

Requires DCA to post on its Internet website information about enforcement of maintenance violations for vacant and abandoned properties under foreclosure.

New Mexico

H.B. 26

Enacts the Foreclosure Fairness Act; allows recovery of attorney fees for the prevailing defendant in a foreclosure action.

New Mexico

S.B. 27

Makes an appropriation to support the Foreclosure Process Task Force.

New Mexico

S.B. 29

Reduces enforcement period of deficiency judgments following foreclosure.

New Mexico

S.B. 30

Enacts the Home Loan Loss Mitigation Servicing Standards Act; prohibits certain acts; requires opportunity for mitigation of loss; requires certain actions prior to foreclosure; provides for remedies.

New Mexico

S.B. 122

Enacts a mechanism for expedited foreclosure of vacant and abandoned residential property; provides that a mortgage holder may enter and secure vacant and abandoned residential property under certain circumstances.

New Mexico

S.B. 141

Requires the opportunity for a settlement facilitation conference prior to foreclosure; makes an appropriation.

New Mexico

S.B. 142

Clarifies that foreclosure of residential real property is a judicial procedure; requires creditors to provide borrowers notice of any opportunities for loss mitigation prior to foreclosure.

New Mexico

S.B. 143

Clarifies procedures for notice of judgment sales; requires a judgment creditor to record a residential foreclosure judgment; requires a judgment creditor to file a notice of judicial sale in court and mail notice of judicial sale to judgment debtor.

New Mexico

S.B. 439

Amends the Home Loan Protection Act; clarifies that the Home Loan Protection Act does not affect foreclosure processes pursuant to the Deed of Trust Act.

New York

A.B. 247

S.B. 5241

Provides that the defense, in a mortgage foreclosure action, of the plaintiff's lack of standing is not waived because of the defendant's failure to raise such defense in his or her responsive pleading.

New York

A.B. 335

S.B. 1779

Requires a plaintiff in a mortgage foreclosure action to maintain the subject property in good faith.

New York

A.B. 477

S.B. 765

Requires the provision of notice to mortgagors in default for 30 days or more regarding assistance and the necessity of maintaining their residences.

New York

A.B. 1170

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

New York

A.B. 1298

S.B. 5242

Expands the provisions relating to mandatory settlement conferences in residential foreclosure actions.

New York

A.B. 2490

S.B. 3751

Provides for free legal representation in certain mortgage foreclosure actions where the homeowner is financially unable to obtain counsel; requires notice of such availability.

New York

A.B. 3295

Authorizes localities to convey distressed residential real property that has been foreclosed upon for non-payment of real estate taxes to a third party; establishes that third party may be an individual or for-profit or not-for-profit entity which would rehabilitate and manage such property, providing needed housing while restoring the property to the non-delinquent tax rolls; called "third party transfer program."

New York

A.B. 3325

Establishes a one year moratorium on actions to foreclose a mortgage.

New York

A.B. 3995

S.B. 3204

Passed Senate 6/11/15

Prohibits disclosure, under the freedom of information law, of information provided by mortgagees to the department of housing preservation and development of the city of New York relating to residential real property foreclosures.

New York

A.B. 4152

Requires a plaintiff in a mortgage foreclosure action to maintain the subject property in good faith.

New York

A.B. 4567

Allows right of redemption in foreclosure action brought against mortgagor's residence; provides such right must be exercised within one year of entering of judgment.

New York

A.B. 4842

S.B. 6256

Requires plaintiffs in mortgage foreclosure actions to provide contact information.

New York

A.B. 5457

S.B. 2061

Requires counties and/or cities to establish a plan for providing legal counsel to persons who are defendants or respondents in eviction, ejectment and foreclosure proceedings and who are financially unable to obtain counsel; eligible person is one whose gross individual income is not in excess of 125 percent of the federal income official poverty line; requires the state to match dollar for dollar the amount counties appropriate for their plans.

New York

A.B. 5681

Creates land banks for the acquisition of vacant and abandoned properties and authorizes the sale of such properties.

New York

A.B. 6283

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

New York

A.B. 6391

S.B. 2752

Requires banks and financial institutions entering into negotiations to modify a mortgage on real property located in this state to be responsible for the continuation of the modification process until its completion regardless of whether the mortgage is sold.

New York

A.B. 6549

S.B. 265

Requires lenders, assignees and mortgage loan servicers to submit an affidavit to the court at least 30 days before commencing foreclosure proceedings.

New York

A.B. 6749

S.B. 2786

Provides that records of eviction proceeding shall be sealed when the leased property was foreclosed upon; prohibits use and disclosure of any such information relating to a tenant; imposes fine of between $1,000 and $2,000 for violations thereof.

New York

A.B. 6932

S.B. 4781

Establishes the "Abandoned Property Neighborhood Relief Act of 2016"; relates to the duty of the mortgagee or its loan servicing agent to maintain property secured by a delinquent mortgage.

New York

A.B. 7340

S.B. 1425

Provides for the appointment of foreclosure receivers and managing agents in cities having a population of one million or more.

New York

A.B. 7527

Provides for no filing or recording fees for land banks.

New York

A.B. 7528

Enacting clause stricken 6/10/15

Relates to the disposition of property by a land bank; provides that §1609 of the Not-for-profit Corporation Law shall supersede §2897 of the Public Authorities Law.

New York

A.B. 7529

Authorizes holding title of real property of a land bank in the name of a subsidiary; grants additional powers to land banks.

New York

A.B. 7530

Grants additional powers to land banks; authorizes land banks to lend money, make grants and hold real and personal property security for the payments of funds so loaned; further authorizes land banks the power to organize a subsidiary for a project or projects to limit the potential liability of such subsidiary's project.

New York

A.B. 7848

S.B. 5776

Authorizes land banks to access real property prior to acquisition of the property and relates to the liabilities and exemptions from liability of land banks with relation to the acquisition and ownership of vacant, abandoned or tax delinquent real property.

New York

A.B. 7911

Substituted 6/17/15

S.B. 5777

Signed by governor 10/26/15, Chapter 407

Relates to the acquisition and disposition of property by land banks; provides for no filing or recording fees for land banks.

New York

A.B. 8156

Provides the land bank can assign all rights resulting from the land bank's successful tender for the property to the foreclosing governmental unit; allows the property to be deeded directly to the foreclosing governmental unit.

New York

A.B. 8318

S.B. 4498

Provides for summary action to foreclose upon vacant and abandoned residential real property.

New York

A.B. 8376

Relates to Superstorm Sandy real property foreclosure relief.

New York

A.B. 8478

Requires notice in foreclosure actions; requires notice to municipalities by the mortgagee and requires notice to mortgagor of their right to remain on the property until final judgment.

New York

A.B. 8559

S.B. 6656

Relates to providing notice to a homeowner whose property is being foreclosed that they do not have to abandon the property until the day of the foreclosure sale.

New York

A.B. 8677

S.B. 5228

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.

New York

S.B. 769

Requires certain individuals or entities to maintain a property in good condition during the term of foreclosure; creates a class B misdemeanor for any person who violates such provisions.

New York

S.B. 2239

Enacts the "Home Mortgage Bridge Loan Assistance Act of 2016."

New York

S.B. 3572

Relates to residential mortgage foreclosure fraud prevention; creates the crimes of residential mortgage foreclosure fraud in the first and second degrees.

New York

S.B. 3762

Relates to prohibiting robosigned documents in foreclosure actions.

New York

S.B. 3767

Relates to prohibiting mortgagors from recovering attorney's fees and/or expenses incurred during a foreclosure.

New York

S.B. 3768

Relates to modifying delinquent mortgage loans and single point of contact.

New York

S.B. 4012

Establishes the rural homeownership assistance program to assist first time, low or moderate income, or minority homeowners in avoiding foreclosure by authorizing and directing the commissioner of state division of housing and community renewal to enter into contracts with neighborhood preservation companies to provide such assistance to residents in certain rural communities; appropriates $1,000,000 for such purposes.

New York

S.B. 4357

Grants tenants relocation costs from the proceeds of a foreclosure sale.

New York

S.B. 4607

Relates to permitting foreclosure of real property improved by a non-residential building or certain multi-family buildings by the power of sale; establishes an effective non-judicial proceeding for uncontested commercial mortgage foreclosure.

New York

S.B. 4636

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

New York

S.B. 5128

Relates to powers of a land bank, land bank exemptions from fee clerks, access to parcels of property that land banks may acquire, land bank liability exemptions, the disposition of property by a land bank and a land bank's authority to hold title to real property.

New York

S.B. 5203

Provides that the judgment of sale in a mortgage foreclosure action shall direct that payment by the purchaser be made by means of a bank or credit union officer's check or certified check.

New York

S.B. 5474

Relates to establishing the community restoration fund.

North Carolina

H.B. 174

Signed by governor 8/5/15, Chapter 178

Amends and enhances certain notice requirements and protections for tenants of real properties in foreclosure and allows for purchasers of real property under option contracts to pursue monetary damages separately from summary ejectment proceedings and other amendments to the Homebuyer Protection Act.

North Carolina

H.B. 704

Provides tax relief for mortgage debt cancellation.

North Dakota None  
N. Mariana Islands Not available  
Ohio

H.B. 134

Passed House 11/17/15

Amends §§323.47, 1901.18, 2303.26, 2329.01, 2329.02, 2329.20, 2329.21, 2329.23, 2329.26, 2329.30, 2329.31, 2329.33, 2329.52, and 2909.07 and enacts §§2308.01 to 2308.04, 2329.211, and 2329.311 of the Revised Code to establish summary actions to foreclose mortgages on vacant and abandoned residential properties and to make other changes relative to residential foreclosure actions.

Ohio

H.B. 303

Passed House 12/8/15

Enacts §§5315.01, 5315.02, 5315.03, 5315.04, and 5315.05 of the Revised Code to create the D.O.L.L.A.R. Deed Program.

Ohio

H.R. 107

Adopted 10/7/15

Requests the Congress of the United States renew funding for Save the Dream Ohio to help homeowners in the state of Ohio avoid foreclosure.

Oklahoma

S.B. 277

Relates to Citizens Land Banks; creates the Citizens Land Banks Development Act; provides short title; creates the Citizens Land Banks Development Commission; states purpose; states membership; provides for appointments; states procedures for Commission meetings; provides for travel reimbursement; states Powers and duties; provides for administration and staffing requirements by the secretary of Commerce and the Oklahoma Department of Commerce.

Oklahoma

S.R. 2

Recognizes the use of eminent domain laws by certain municipalities to restructure mortgage loan foreclosures; encourages all policymakers to examine impact of such action on diverse communities; supports programs to prevent foreclosures; directs distribution.

Oregon

H.B. 3080

Requires owner to pay dues, charges, fees and assessments that homeowners association, condominium board or association of unit owners imposes to maintain property that homeowners association, condominium board or other association of unit owners holds in common, and for related purposes, during period in which foreclosed residential real property is vacant. Requires owner to pay utilities during period in which foreclosed residential real property is vacant. Permits homeowners association, condominium board or other association of unit owners to bring action for dues, charges, fees or assessments that remain unpaid 60 days or more after date on which homeowners association, condominium board or other association of unit owners notified owner of dues, charges, fees or assessments.

Oregon

S.B. 252

Signed by governor 6/11/15, Chapter 382

Exempts Department of Veterans' Affairs from requirement to request or participate in resolution conference in connection with foreclosure of residential trust deed when department is acting in capacity as beneficiary of loan made by department pursuant to statute.

Oregon

S.B. 368

Signed by governor 6/8/15, Chapter 291

Permits judgment creditor in foreclosure suit to bid for foreclosed property at foreclosure sale by paying, among other fees and costs, amount that exceeds full amount of money award if judgment includes money award, or amount declared in judgment for judgment that does not include money award. Specifies that judgment creditor's bid for foreclosed property may not exceed full amount owing on money award in judgment that includes money award or amount declared in judgment for judgment that does not include money award. Provides that judgment to foreclose residential trust deed may not include money award for amount of debt against grantor, successor in interest or another person obligated on note, bond or other obligation in specified circumstances. Requires judgment in suit to foreclose lien to include declaration of amount of debt lien secures and, if plaintiff requests in complaint, money award against lien debtor.

Pennsylvania

H.B. 795

Provides for foreclosed property maintenance; and imposes penalties.

Pennsylvania

H.B. 1500

Amends Title 68 (Real and Personal Property) of the Pennsylvania Consolidated Statutes, in land banks, further provides for legislative findings and purpose, for powers and for disposition of property.

Pennsylvania

S.B. 80

Authorizes the establishment of land bank programs and affordable housing programs with the approval of the electorate; providing for funding by proceeds from tax on the transfer of real property; and specifying the purposes of the programs.

Puerto Rico

H.B. 217

Sets the insurance program for mortgage loans for families who have faced foreclosure on primary residence, assigned to the Authority for Housing Finance, in order to create alternative mortgages for families or individuals who have suffered foreclosure on your principal residence during the calendar years 2006, 2007, 2008, 2009 and 2010; appropriates funds.

Puerto Rico

H.B. 301

Creates the Inventory of Land Bank of Puerto Rico to be attached to the Department of Housing to integrate under a proper inventory all land on the island suitable for housing development social interest, including those farms with projects that have permissions conceptualized preapproved and completed environmental procedures to reduce construction time and costs of the work for the developer.

Puerto Rico

H.B. 909

Amends Law 247 of 2010 known as the Act to Regulate the Business of Mortgage Loans in order to impose the requirement of mortgage institutions to acquire real property involuntarily, through its foreclosure, the responsibility to maintain it in good condition in order to prevent the abandonment of property that is repossessed or becomes a problem of looming public health, or that it be used for illegal purposes, and in the case that it affects the valuation of other adjacent properties and/or the like.

Puerto Rico

H.B. 1095

Amends Law 198 of August 8, 1979 known as the Mortgage and Property Registry to clarify several issues related to segregation and aggregation of farms, and the foreclosure process.

Puerto Rico

H.B. 1414

Establishes the Law on Prevention of Diseases and Accidents with respect to foreclosed properties.

Puerto Rico

H.B. 2037

Amends Law 184 of 2012, the Compulsory Mediation Act and Preservation in Your Home Mortgage Foreclosure Processes of a Main House in order to clarify its provisions on the selection of mediators directing compulsory mediation meetings held under this Act.

Puerto Rico

H.B. 2127

Withdrawn 6/3/15

Creates the Special Law to Safeguard the Principal Housing for the purposes of fixing the mortgage debt notes at risk of foreclosure to the market value of collateral, if this is the debtor's principal residence; creates the program as a remedy for Sale Rent to foreclosure.

Puerto Rico

H.B. 2150

Pocket veto by governor 3/25/15

Creates the Relief Mortgagor Act for purposes of requiring the creditor of a mortgage in arrears, before initiating any legal proceedings which may culminate in a lawsuit charging money and foreclosure, to offer the alternative of mitigation of damages for mortgagors, and only after having completed this, and the mortgagor knows whether or not she qualifies for this alternative, then the mortgagee may commence legal proceedings before a court of Puerto Rico.

Puerto Rico

H.B. 2252

Amends Law 184 of 2012 known as the Act of Compulsory Mediation and Preserving Homes in Mortgage Foreclosure in order to include the obligation of the mediator to present a confidential report to the Court in which gives details of efforts to reach a mediation and recommendations that may guide the judge in the cases referred to compulsory mediation.

Puerto Rico

H.B. 2479

Signed by governor 12/14/15, Chapter 210

Adopts the Law of Property and Registry of the Commonwealth; creates a the Digital Land Registry; repeals Law 198 of 1979 known as the Mortgage Law and the Property Registry and its Regulations.; repeals existing laws relative to registration statements that create liens on real estate; repeals the Foreclosure Registration Act; repeals existing law to create a Lien Contributions and Registering Liens for contributions in favor of the United States.

Puerto Rico

H.B. 2657

Amends Law 97 of 1973 known as the Mortgage Institutions Act in order to end of ban on mortgage credit obligations with respect to costs, expenses and attorney's fees in case of foreclosure that are in excess of ten percent of the outstanding principal amount; establishes penalties for violation of the provisions.

Puerto Rico

H.R. 1107

Adopted 1/20/15

Directs the House Committees on Consumer Affairs and Anti-Monopolistic Practices and the Judiciary to conduct an investigation into the compliance of financial institutions with the provisions law, state and federal, regarding the compulsory mediation in foreclosure proceedings; determines whether these measures have met the financial goals and the legislative intent for which they were established.

Puerto Rico

S.B. 1045

Amends Law 184 of 2012 in order to exclude a requirement for designation of a view or compulsory mediation session of the presentation of the responsive allegation by the defendant mortgagor.

Puerto Rico

S.B. 1400

Adopts the Law of Property and Registry to create the Digital Land Registry; repeals Law 198 of 1979, as amended, known as the Mortgage Law and the Property Registry and its Regulations.; repeals existing law with regard to statements that create liens on real estate, Foreclosure of Registration Act, lien contributions in favor of the Commonwealth, liens for contributions in favor of the United States; amends existing law known as the Law of Negotiable Instruments and Banking Transactions.

Puerto Rico

S.J.R. 556

Authorizes the secretary of Housing to dispose of all lots of vacant residential land in administered by the Department of Procurement and Sales Department of Housing communities; authorizes the revision or cancellation of mortgages with balances greater than $1,000; authorizes and provides new sales of vacant or foreclosed properties according to the prices established in the current administrative orders.

Puerto Rico

S.R. 991

Directs the Senate Committee on Sustainable Housing and Communities to study the housing market in Puerto Rico including the number of foreclosed homes on the island each year, the number of people who accepted the mediation mechanism established by Law, known as the Law for Compulsory mediation and Preserving your Home in the Mortgage Foreclosure processes of a Main House, and plans of action at the level of established government, both state and municipal.

Rhode Island

H.B. 5067

This bill requires mortgagees, upon filing notice of intent to foreclose against a mortgagor, to file a copy of that notice with the city or town municipal clerk, and appoint an agent for service of process within the state. Further, the bill requires a mortgagee who initiates a foreclosure proceeding against a residential property located in the municipality, to maintain the property in accordance with state and local housing codes if the property becomes vacant during the foreclosure proceeding.

Rhode Island

H.B. 5191

This bill imposes a penalty upon financial institutions failing to promptly record foreclosure deeds and pay outstanding taxes.

Rhode Island

H.B. 5645

This bill reduces the number of days within which a foreclosure deed must be filed from 45 to 15. The bill also requires mortgagees, upon giving notice of intent to foreclose a mortgage, to file a copy of that notice with the city or town clerk and appoint an agent for service of process within the state. The bill also requires holders of vacant and abandoned property to provide for the maintenance, security, and upkeep such property.

Rhode Island

H.B. 5613

Passed House 6/10/15

This bill provides that no mortgagee shall require an entity with tax-exempt status under §501 (c)(3) of the Internal Revenue Code to file an affidavit, statement, agreement or addendum limiting ownership or occupancy of residential property when offering to purchase a mortgage loan on residential property.

Rhode Island

H.B. 5617

This bill provides for additional protection when a mortgage is subject to either the federal or state Servicemember's Civil Relief Act.

Rhode Island

H.B. 5638

This bill establishes the Rhode Island foreclosed property upkeep act and requires a purchaser of foreclosed property to maintain the property in accordance with the Rhode Island housing and maintenance and occupancy code and also to identify an agent in Rhode Island for service of process.

Rhode Island

H.B. 5782

Became law without governor’s signature 7/15/15, Chapter 250

S.B. 456

Became law without governor’s signature 7/15/15, Chapter 268

This act amends the definition of a third-party loan servicer to include a person or entity that owns servicing rights whether or not that owner services the loan themselves or contracts with another person or entity for servicing.

Rhode Island

H.B. 5788

Passed House 6/15/15

This bill expedites the foreclosure procedure on vacant property, and amends the provisions of the general laws on tax sales in order to, among other things, establish priorities of tax liens, clarify the effect of late recordings and simplify procedures in the event of a void sale.

Rhode Island

H.B. 6264

Became law without governor’s signature 7/9/15, Chapter 155

S.B. 581

Became law without governor’s signature 7/2/15, Chapter 147

This act substitutes the word "voidable" for the word "void" relative to foreclosure deeds whenever the mortgagee fails to comply with the requirements of the general laws pertaining to mediation conferences held for the purpose of avoiding foreclosure proceedings if at all possible. The word change brings the statute into conformity with other provisions addressing a one year limitation for action to declare the mortgage foreclosure process invalid. This act also provides for additional protection when a mortgage is subject to either the federal or state Servicemember's Civil Relief Act.

Rhode Island

S.B. 587

This bill reduces the number of days within which a foreclosure deed must be filed from 45 to 15. The bill also requires mortgagees, upon giving notice of intent to foreclose a mortgage, to file a copy of that notice with the city or town clerk and appoint an agent for service of process within the state. The bill also requires holders of vacant and abandoned property to provide for the maintenance, security, and upkeep such property.

Rhode Island

S.B. 865

This bill provides that no mortgagee shall require an entity with tax-exempt status under §501 (c)(3) of the Internal Revenue Code to file an affidavit, statement, agreement or addendum limiting ownership or occupancy of residential property when offering to purchase a mortgage loan on residential property.

Rhode Island

S.B. 946

This bill expedites the foreclosure procedure on vacant property, and amends the provisions of the general laws on tax sales in order to, among other things, establish priorities of tax liens, clarify the effect of late recordings and simplify procedures in the event of a void sale.

South Carolina

H.B. 3360

Provides for a six-month moratorium on the foreclosure of, and on the accrual of interest on, certain mortgages secured by residential real estate located in South Carolina.

South Dakota None  
Tennessee

None

 

Texas

H.B. 1289

Signed by governor 6/17/15, Chapter 721

The bill amends the Local Government Code to authorize an urban land bank under the Urban Land Bank Demonstration Program Act to acquire and sell to a developer property intended for commercial use.

Texas

H.B. 2063

Became law without governor’s signature 6/17/15, Chapter 653

The bill amends the Property Code to provide for the recording of certain documents concerning real property subject to a foreclosure sale that are received by a county clerk and for the effective date of the appointment or authorization of a trustee or substitute trustee made in a notice of the sale of real property under a contract lien.

Texas

H.B. 2066

Signed by governor 6/16/15, Chapter 551

The bill amends the Property Code to establish a process for the rescission of a nonjudicial foreclosure sale of residential real property.

Texas

H.B. 2069

Relates to the administration of foreclosure sales of real property.

Texas

H.B. 4015

Passed House 5/8/15

Allows a Bexar County land bank demonstration program.

Texas

S.B. 283

Relates to requirements for the nonjudicial foreclosure of certain residential mortgage liens.

Utah

None

 

Vermont None  
Virginia

H.B. 1447

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 (a) knowingly makes, uses, or causes to be made or used any false or fraudulent record, document, or statement or (b) 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.

Virginia

H.B. 1794

Signed by governor 3/23/15, Chapter 401

S.B. 1015

Signed by governor 2/26/15, Chapter 23

Allows the optional streamlined advertisement of a time-share property being foreclosed upon, requiring publication of the time, place, and date of sale; identification of the time-share being sold; contact information for obtaining further information about the sale; and a website address where more complete information and documentation can be obtained. The bill is a recommendation of the Virginia Housing Commission.

Virgin Islands Not available  
Washington

S.B. 5968

Clarifies that foreclosure proceedings may be initiated by the owner or holder of a trust deed or by a designee.

West Virginia None  
Wisconsin

None

 

Wyoming None  

 

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Heather Morton is a program principal in NCSL's Fiscal Affairs Program. She covers financial services, alcohol production and sales, and medical malpractice issues for NCSL

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