Bill > S2015

This bill aims to clarify ownership of foreclosed properties by establishing a timeframe after which an affidavit of foreclosure becomes conclusive evidence of a valid sale, provided it's in the correct legal form and recorded properly. An "arm's length third party purchaser for value" is defined as an independent buyer who pays for the property, excluding the foreclosing party or related entities. This affidavit will be considered conclusive proof that the foreclosure sale followed all legal requirements after three years from its recording, known as the "deadline." However, this protection doesn't apply if a legal challenge to the foreclosure sale is filed in court and properly recorded before the deadline, or if a party who still lives in the property raises a challenge, even after the deadline, as long as the challenge is recorded within 60 days or before the deadline, whichever is later. The bill also clarifies that the person who filed the affidavit can still be held liable for any legal violations during the foreclosure process, and misrepresentations in affidavits filed after January 7, 2011, could lead to damages under consumer protection laws. Importantly, an innocent buyer who relied on a valid affidavit won't be held responsible if the foreclosure process was flawed, and their ownership will be protected unless a challenge is made as described. For affidavits filed before this act takes effect, the deadline will be three years from recording or one year from the act's effective date, whichever is later. The bill also mandates that the Attorney General and the Commissioner of Banks will work with industry stakeholders to inform homeowners about the act's impact.