Bill > S852

This bill proposes to change how foreclosures are handled for residential mortgages on properties with one to four owner-occupied units. Currently, foreclosures might be handled through different processes, but this bill mandates that all such foreclosures must begin with a formal lawsuit, called a "foreclosure complaint," filed in the Superior Court of the county where the property is located. This means a judge will oversee the process, and the homeowner (referred to as the "mortgagor") will have the opportunity to present any legal arguments or defenses they have against the lender ("mortgagee") or anyone acting on their behalf. The court will have the power to adjust the mortgage terms or provide other suitable remedies to the homeowner, while importantly, this change will not impact the rights of any tenants or other legal residents of the property. Additionally, the court can overturn a default judgment if there's a valid reason.