Skip to main content
House Bill 1633


House Bill 1633

ARCHIVE (2009)

Latest Information

 

DIGEST OF HB1633 (Updated February 25, 2009 3:56 pm - DI 84)


Foreclosure of residential mortgages. Provides that in the case of a residential mortgage transaction in which the debtor defaults after June 30, 2009, the creditor shall provide a presuit notice to the debtor that informs the debtor that the creditor intends to default and that the debtor may seek assistance from a mortgage foreclosure counselor. Specifies that if a creditor files an action to foreclose a mortgage in certain cases, the creditor must include with the complaint served on the debtor a notice that informs the debtor of the debtor's right to participate in a settlement conference. Requires the debtor to contact the court not later than 30 days after the date of the notice if the debtor wishes schedule a settlement conference. Prohibits a court from entering a judgment of foreclosure until: (1) 30 days after the creditor has provided notice of the availability of a settlement conference to the debtor if the debtor fails to contact the court within 30 days; (2) the conclusion of a settlement conference, if the parties are unable to reach an agreement; or (3) 60 days after the notice is sent if the property is vacant or certain other conditions apply. Provides that the debtor has the right to be represented by an attorney or a mortgage foreclosure counselor at the conference. Requires the creditor to ensure that any person representing the creditor at the conference or in any negotiations with the debtor has authority to bind the creditor. Upon the conclusion of a conference, requires the creditor to report to the housing and community development authority (authority) on whether the parties were able to agree on the terms of a foreclosure prevention agreement. Provides that after June 30, 2009, a creditor may not proceed to file a residential mortgage foreclosure action unless: (1) the creditor has given the required notice offering a conference to the debtor; (2) either the debtor did not respond to the creditor's notice not later than 30 days after the date of the notice, or the parties were unable to negotiate a mortgage prevention agreement after a conference is held; and (3) at least 90 days have elapsed since the date of the creditor's notice. Provides that in a residential mortgage foreclosure action filed after June 30, 2009, the court may not enter a judgment of foreclosure until 60 days after the date the complaint is filed, in a case in which the debtor did not respond to the creditor's notice not later than 30 days after the date of the notice. Provides that,
Current Status:
 In Committee - 2nd House
>Latest Printing > (PDF)