Bill > H1599

This bill mandates that all foreclosures on residential mortgages for properties with one to four units that are owner-occupied must begin by filing a lawsuit, called a foreclosure complaint, in the Superior Court of the county where the property is located. This change means that instead of a lender potentially foreclosing without court involvement, they will now have to go through a judicial process. In this court proceeding, the homeowner (the mortgagor) can present any legal arguments or defenses they have against the lender (the mortgagee) or anyone acting on their behalf. The court will have the power to adjust the mortgage terms or provide other suitable remedies for the homeowner, but these changes will not impact the rights of any tenants or other legal occupants living in the property. Additionally, the court can overturn a default judgment, which is a ruling made when one party doesn't respond to the lawsuit, if there's a valid reason.