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ID S1355
Bill
Status
Passed
3/23/2022
Primary Sponsor
State Affairs Committee
Click for details
AI Summary
- Applies to regulated credit transactions made on or after July 1, 2022, secured by a subordinate lien on 1-4 family residential property where the owner occupies one unit as principal residence
- Requires creditors or assignees to send written notice to consumers within 90 days after a foreclosure sale of a senior mortgage, notifying them of liability under the regulated credit transaction
- Mandates notice must include a statement informing consumers that their liability is subject to a statute of limitations and advising them to seek legal counsel
- Requires written notice to consumers at the time of account sale or assignment containing the same statute of limitations statement
- Failure to provide required notice does not invalidate, alter, or impair a creditor's right to attempt collection of the obligation
- Becomes effective July 1, 2022, and declared an emergency measure
Legislative Description
Adds to existing law to provide for restrictions on actions arising from a regulated credit transaction primarily secured by a mortgage or deed of trust on residential real property.
COMMERCIAL TRANSACTIONS
Last Action
Session Law Chapter 168 Effective: 07/01/2022
3/23/2022
Committee Referrals
Business3/8/2022
Commerce and Human Resources3/1/2022
Judiciary and Rules2/28/2022
Full Bill Text
No bill text available