Bill > S1981

This bill amends existing law to clarify the process of clearing title to foreclosed properties, particularly for buyers who are not affiliated with the foreclosing party or mortgage holder, referred to as "arm's length third party purchasers for value." The key provision establishes that after three years from the recording of an affidavit (a sworn statement) related to a foreclosure sale, this affidavit will serve as conclusive proof that the foreclosure was conducted properly, unless a legal challenge to the sale has been filed and recorded within specific timeframes. These timeframes are either before the three-year deadline or, in certain cases where the original occupant is still residing in the property, within 60 days of the challenge or the deadline, whichever is later. The bill also clarifies that this new rule applies to affidavits recorded before, on, or after the bill's effective date, and that while the affidavit's conclusiveness protects innocent buyers, it does not shield the foreclosing party from liability for any legal violations during the foreclosure process, with a specific exception for certain misrepresentations made before January 7, 2011.