Bills · 2013-2014 Regular Session
Relating to: reducing certain redemption periods in foreclosure actions.
Housing Human immunodeficiency virus _hiv_ Mortgage Motor vehicle
- Introduced, stopped here
- Passes Senate, not reached
- Passes Assembly, not reached
- Governor signs, not reached
- Law, not reached
Unfamiliar terms? Glossary
What this bill does
Plain-language analysis by the nonpartisan Legislative Reference Bureau
If a mortgagor (person who takes out a mortgage loan to, for example, buy real
property) defaults in the repayment of the loan, the mortgagee (person or entity that
made the loan, such as a bank) may commence a mortgage foreclosure action, the
procedure for which is provided in current law. If the mortgagor owes the money, the
court will enter judgment for the mortgagee, who is the plaintiff in the action. Before
the property may be sold at sheriff's sale, a specified period of time, known as the
redemption period, must elapse during which the mortgagor may pay the amount
owed on the loan. If the amount is not paid by the end of the redemption period, the
property will be sold at sheriff's sale and the amount realized on the sale of the
property will be paid against the amount owed on the loan.
Under current law, the length of the redemption period for a one-family to
four-family residence that is owner-occupied at the commencement of the
foreclosure action is 12 months and notice of the sale may not be made before ten
months after the foreclosure judgment is entered. If the plaintiff has waived a
deficiency judgment so that the defendant does not have to pay any amount by which
what the defendant owes on the mortgage exceeds the amount recovered at the sale
of the property, the length of the redemption period is six months and notice of the
sale may not be made before four months after the foreclosure judgment is entered.
This bill shortens up the redemption periods and the times for noticing the sale
for a one-family to four-family residence that is owner-occupied at the
commencement of a foreclosure action. Under the bill, if the plaintiff is seeking a
deficiency judgment, the redemption period is shortened to six months and notice of
the sale may not be made before four months after the foreclosure judgment is
entered. If the plaintiff has waived a deficiency judgment, the length of the
redemption period is shortened to three months and notice of the sale may not be
made before one month after the foreclosure judgment is entered.