HB1875 - Mortgage Foreclosures; Homeowner Association Liens and Assessments

• Creates new homeowner association foreclosure processes under Chapter 421J and establishes lien procedures with six-year expiration periods for recorded liens unless enforcement proceedings are timely initiated.

• Eliminates the old nonjudicial foreclosure process (Part I of Chapter 667) and replaces it with two alternatives: associations use a new power-of-sale process (Part II) while mortgagees continue with existing judicial and nonjudicial options.

• Makes permanent the mortgage foreclosure dispute resolution program for owner-occupants of residential property, allowing them to participate in facilitated negotiations with mortgagees to avoid foreclosure or mitigate damages.

• Requires mortgages serving on residential property to provide attorney affirmations verifying document accuracy and compliance, and prohibits deficiency judgments against owner-occupants in nonjudicial foreclosures unless debt is secured by other collateral.

• Modifies homeowner association assessment collection procedures to allow rent interception from tenants of delinquent units, restricts special assessments on foreclosed properties, and establishes dispute resolution mechanisms for assessment amount challenges.