Bill > S882

This bill aims to clarify ownership of foreclosed properties by establishing a clear timeframe after which an affidavit of foreclosure becomes conclusive evidence of a valid sale, provided certain conditions are met. An "arm's length third party purchaser for value" is defined as someone buying the property who is not the foreclosing party or their affiliates, and this definition includes their heirs and assigns. The bill introduces a "deadline" of 3 years from the recording of the affidavit, after which it will be considered conclusive proof that the foreclosure sale was conducted properly, unless a legal challenge is filed within specific parameters. These challenges must be formally recorded in the registry of deeds or land court before the deadline, or if the property is still occupied by the original homeowner, within 60 days of the challenge being raised in court or before the deadline, whichever is later. Even if a challenge is initially filed, the affidavit can still become conclusive after a final court judgment confirms the foreclosure was valid. Importantly, this bill does not relieve the party conducting the foreclosure from liability for any errors, and material misrepresentations in the affidavit will be considered a violation of consumer protection laws. The bill also clarifies that the purchaser is not liable for issues with the foreclosure if they relied on the affidavit and no valid challenge was filed, and their title will generally not be overturned. The provisions of this act apply to affidavits recorded both before and after its effective date, with a specific provision for affidavits filed before the act's enactment, extending the deadline to 3 years from recording or 1 year from the act's effective date, whichever is later.