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ID H0541
Bill
Status
2/4/2022
Primary Sponsor
Judiciary, Rules and Administration Committee
Click for details
AI Summary
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Judicial foreclosure actions on real property mortgages must be commenced within 5 years from the maturity date of the financial obligation or indebtedness secured by the mortgage.
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For obligations without a stated maturity date, the accrual date of the cause of action giving rise to the foreclosure right is deemed the maturity date.
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Failure of the note holder to commence a judicial foreclosure within the 5-year period bars any further right to collect the mortgaged debt.
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If a judicial foreclosure action is barred after 5 years with no foreclosure action initiated, the mortgage or deed of trust lien is automatically released from the real property.
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The act takes effect on July 1, 2022, with an emergency declaration.
Legislative Description
Amends existing law to revise provisions regarding an action to foreclose mortgage on real property and to provide that a lien of the mortgage shall be deemed automatically released in certain instances.
LIMITATIONS OF ACTIONS
Last Action
Reported Printed and Referred to Judiciary, Rules & Administration
2/7/2022