Bill > H503

This bill mandates that all foreclosures on residential mortgages for properties with one to four units that are owner-occupied must begin with a formal legal action, known as a foreclosure complaint, filed in the superior court of the county where the property is located. This means that instead of a lender potentially taking possession of a home without a court's direct involvement, they must now go through a judicial process. During this process, the homeowner (referred to as the mortgagor) can present any legal arguments or defenses they have. The court will have the power to make changes to the mortgage terms or provide other suitable remedies to the homeowner, though these actions will not impact the rights of any tenants or other legal residents of the property. Additionally, the court can overturn a default judgment (a judgment made when a party fails to appear or respond) if there is a valid reason.