Bill > H3805

This bill aims to clarify ownership of properties that have gone through foreclosure by establishing a timeframe after which an affidavit of foreclosure becomes conclusive evidence of a valid sale, meaning the property title is cleared. Specifically, it defines an "arm's length third party purchaser for value" as someone buying the property who is not the foreclosing party or their affiliates, and sets a "deadline" of three years from the recording of the foreclosure affidavit for challenges to the sale. After this deadline, the affidavit is considered conclusive proof that the foreclosure sale was conducted properly, protecting the buyer from liability unless specific legal challenges were filed within the deadline, with exceptions for occupants who continue to reside in the property. The bill also clarifies that this process does not relieve the foreclosing party from any liability for improper foreclosure, and material misrepresentations in the affidavit are considered a violation of consumer protection law. For affidavits filed before this bill becomes law, the deadline to challenge the sale will be the later of three years from the affidavit's recording or one year from the bill's effective date.