Bill > S2057

This bill aims to clarify ownership of foreclosed properties by establishing a clearer process for validating foreclosure sales. It expands the jurisdiction of the housing court department to include defenses or counterclaims related to foreclosures for parties entitled to notice of sale or those who continue to occupy the property. The bill also amends existing law regarding foreclosure affidavits, defining an "arm's length third party purchaser for value" as someone who buys a foreclosed property for fair market value, excluding the foreclosing entity or its affiliates. After three years from the recording of a foreclosure affidavit, it will generally be considered conclusive proof that the foreclosure sale was conducted properly, protecting the title of such a purchaser unless a legal challenge is filed within specific timeframes or by occupants of the property. The bill also includes provisions for notifying homeowners about these changes and sets an effective date.