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House Bill 1341

House Bill 1341

ARCHIVE (2012)

Latest Information


Mortgage foreclosures and junior lienholders. Defines "interested person" as: (1) a holder of an evidence of debt secured by a mortgage that is being foreclosed; or (2) an owner of real property as grantee in a deed of conveyance executed and delivered by a sheriff. Defines "omitted party" as a person: (1) who, before the commencement of an action for the foreclosure of a mortgage on real property, has acquired a record interest in the real property that is junior to the mortgage or other lien being foreclosed and would otherwise be extinguished by the foreclosure; and (2) who is not included as a defendant in the judicial foreclosure action or is included as a defendant in the judicial foreclosure action but is not served with process or notice of sale. Allows an interested person or an omitted party to bring a civil action at any time to: (1) determine the extent of an omitted party's interest in real property; or (2) terminate an omitted party's interest in real property; that is the subject of a judicial sale. Provides that in the civil action, the omitted party's interest in real property: (1) must be terminated by a decree in which the omitted party is afforded redemption rights if the omitted party would have been entitled to redeem under certain circumstances; and (2) is not subject to termination if the omitted party proves the omitted party has a right to receive proceeds that would be paid at the judicial sale. Provides that an amount paid for redemption to an omitted party may not be less than the sale price that results from the foreclosure of the interested person's senior lien plus interest.
Current Status:
In Committee - first House
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