CS/CS/HB 213 - Mortgage Foreclosures

• Reduces the limitations period for deficiency judgments on residential mortgages from 5 years to 1 year, commencing on the 11th day after foreclosure sale or when the mortgagee accepts a deed in lieu of foreclosure.

• Requires mortgage foreclosure complaints on residential properties to contain specific allegations that the plaintiff holds the original note or is otherwise entitled to enforce it, with certification of physical possession of the note as a condition precedent to filing.

• Limits deficiency judgments to the difference between the judgment amount (or outstanding debt in short sales) and the fair market value of the property on the date of sale.

• Establishes expedited foreclosure procedures allowing courts to enter final judgments without hearings if defendants fail to file defenses or appear, and restricts mortgagees' ability to order mortgagors to make payments or vacate during foreclosure except for non-owner-occupied residential property.

• Creates expedited foreclosure procedures for abandoned residential real property, requiring three documented location attempts and two or more conditions indicating abandonment (such as boarded windows, broken doors, accumulated debris, or neighbor interviews confirming abandonment).