HB 5342 Summary

• Establishes three-part deadline for foreclosure actions on residential real property: 10 years from the maturity date of the mortgage/note, 40 years from recording/execution of the mortgage, or 10 years from the date of default, whichever occurs first (effective July 1, 2024).

• Permits extension of foreclosure deadlines if the maturity date or default cure date has been extended by written instrument or if a payment on account has been made.

• Reduces the possession period for undischarged mortgages to become invalid as a lien from 20 years to 10 years after the mortgage's performance deadline expires, or 40 years from recording if no performance deadline is disclosed.

• Allows mortgage holders to record a notice on land records prior to expiration of the applicable time period, which tolls (pauses) the countdown to mortgage invalidity for an additional 10 years.

• Notice must contain mortgagor names, mortgage recording information, and statement of reasons why the mortgage remains valid and effective.