Foreclosure Bills Advance

The full Senate passed a four-bill package that would lengthen the period of time a homeowner has to work with its lender to sell or save their foreclosed property. The bills received bipartisan support after the provision that would have shortened the post-foreclosure redemption period was removed.

Under the provisions of the legislation (Senate Bills 380, 381 and 382), the 90-day pre-foreclosure negotiation period in the state’s loan modification program would be maintained until the new federal regulations take effect in January. Beginning January 9, 2014, lenders would be required to wait 120 days before notifying homeowners of a foreclosure. This extended period of time allows homeowners to seek loan modifications in an effort to avoid foreclosure.

Lastly, the substitute version of Senate Bill 383 would maintain the 180-day post-foreclosure redemption period for homeowners to retain or short sell their homes. The original bill would have reduced this timeframe to two months. The Senate-passed four-bill package was sent to the House Committee on Financial Services.

Meanwhile, the full House passed two bills (House Bill 4765 and4766) in its foreclosure package. Under the provisions of this legislation, the sunset on the mortgage loan modification program would be delayed until June 30, 2014, and mortgage servicers would be required to comply with federal regulations on foreclosure proceedings initiated after January 9, 2014. The bills were transmitted to the Senate.

posted by PAA Online , Friday, June 14, 2013 1:58 PM
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