Bill > H1562

This bill, retroactively effective as of April 13, 2006, amends Chapter 260 of the General Laws to provide remedies for consumers seeking to clear title after paying off their mortgages. Specifically, it establishes a time limit for lenders to exercise a "power of sale" (the right to sell a property to recover debt) or initiate foreclosure proceedings after a mortgage has been paid off. If no term is stated in the mortgage, this period is 35 years from the recording date; if a term or maturity date is stated, it's 5 years from that date. To prevent the mortgage from being considered discharged, an extension, acknowledgment, or affidavit confirming the mortgage is not satisfied must be recorded before these periods expire. If such a document is recorded, the clock resets, and the period continues until 5 years pass without another such recording. Importantly, this time limit cannot be extended due to the nonresidence or disability of interested parties, or by partial payments or other actions not meeting the bill's specific recording requirements. After the specified period expires and the mortgage is paid off, the mortgage will be considered discharged for all purposes, meaning no further action is needed by the property owner to clear the title, and for registered land, it will be marked as discharged upon payment of a recording fee.