Senate Bill 705 Summary

• Prohibits deficiency judgments in residential mortgage foreclosures under judicial proceedings; court cannot enter deficiency judgment and clerk cannot issue execution for any unpaid balance.

• Prohibits deficiency judgments in residential mortgage foreclosures by advertisement; mortgage holder cannot bring action to recover deficiency judgment against mortgagor or other liable parties.

• Prevents deficiency judgments when mortgage holder reaches agreement with mortgagor to allow property sale for less than full amount owed on the note.

• Preserves existing defenses in non-residential foreclosures by advertisement, allowing defendants to claim property was worth the debt amount or bid was substantially less than true value as complete or partial defense.

• Does not affect rights of other purchasers, innocent third parties, negotiability of secured obligations, or title acquired by purchasers at foreclosure sales.