HB 1149 - Mortgage Foreclosures Summary

• Reduces the statute of limitations for deficiency judgment claims from 5 years to 1 year after a court foreclosure sale or short sale, and bars collection attempts if not commenced within this period.

• Limits deficiency judgment amounts to the difference between outstanding debt and fair market value of the property on the sale date, with setoffs for mortgage insurance proceeds collected by the servicer or lender.

• Establishes expedited foreclosure procedures for abandoned residential properties, including requirements for process server attempts to locate occupants and documentation of property deterioration.

• Requires mandatory conciliation conferences or mediation for homestead property foreclosures, with lenders obligated to provide notice and attempt settlement discussions before proceeding to judgment.

• Mandates that owners renting foreclosed properties disclose the foreclosure status to tenants or prospective tenants, and requires plaintiffs to file supporting documents (original note, mortgages, assignments) contemporaneously with initial foreclosure complaints.