Revision: March 27, 2015, midnight
SB 158 - AS INTRODUCED
2015 SESSION
15-0115
05/01
SENATE BILL 158
AN ACT relative to notice required prior to foreclosure.
SPONSORS: Sen. Pierce, Dist 5; Sen. Fuller Clark, Dist 21; Sen. Feltes, Dist 15; Rep. Butler, Carr 7
This bill extends the notice required prior to a foreclosure sale of certain properties from 25 days to 60 days.
The bill is a request of the commission to study New Hampshire mortgage foreclosure law, new federal regulations, and fair foreclosure practices, established in RSA 479:21-a (2014, 198).
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
15-0115
05/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT relative to notice required prior to foreclosure.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Sale Under the Power; Notice. Amend RSA 479:25, II to read as follows:
II. A copy of said notice shall be served upon the mortgagor or sent by registered or certified mail to his or her last known address or to such person as may be agreed upon in the mortgage at least 25 days before the sale. Notwithstanding the foregoing, where the mortgaged premises consists of restricted property, as defined in paragraph V, a copy of the notice shall be served upon the mortgagor or sent by registered or certified mail to his or her last known address or to such person as may be agreed upon in the mortgage at least 60 days before the sale. The term “mortgagor” shall include the mortgagor and any grantee, assignee, devisee or heir of the mortgagor holding a recorded interest in the mortgaged premises subordinate to the lien of the mortgage, provided that such interest is recorded, at least 30 days, or, in the case of restricted property, 65 days before the date of the sale, in the registry of deeds for the county in which the mortgaged premises are situated. Like notice shall be sent to any person having a lien of record on the mortgaged premises, provided that the lien is recorded at least 30 days, or, in the case of restricted property, 65 days before the date of the sale in the registry of deeds. The notice shall be sent not less than 21 days before the sale. Such notice of sale shall be sufficient if it fully sets forth the date, time, and place of sale; the town, county, street or highway and street number, if any, of the mortgaged premises; the date of the mortgage; the volume and page of the recording of the mortgage; and the terms of the sale. Any mortgagor or record lienholder who refuses to accept or claim mailed or served notice or who frustrates attempts by the mortgagee to give notice of the sale by failing to give or leave a forwarding address or by other act or omission shall be deemed to be notified of the sale, provided that such mortgagee shall have made a good faith effort to provide such notice. Notice of the sale as served on or mailed to the mortgagor shall include the following language:
“You are hereby notified that you have a right to petition the superior court for the county in which the mortgaged premises are situated, with service upon the mortgagee, and upon such bond as the court may require, to enjoin the scheduled foreclosure sale.” Failure to institute such petition and complete service upon the foreclosing party, or his agent, conducting the sale prior to sale shall thereafter bar any action or right of action of the mortgagor based on the validity of the foreclosure.
2 New Paragraph; Sale Under the Power; Restricted Property Defined. Amend RSA 479:25 by inserting after paragraph IV the following new paragraph:
V. For the purposes of this section, “restricted property” means an owner-occupied dwelling of 4 or fewer units, except where the mortgagee or assignee seeking to conduct the foreclosure is one or more of the following:
(a) A New Hampshire chartered financial institution, bank, or credit union;
(b) A financial institution, bank, or credit union with its principal place of business in New Hampshire, or the New Hampshire housing finance authority;
(c) A financial institution, bank, or credit union that maintains a physical office or offices exclusively in New Hampshire from which office or offices it carries out full-service mortgage operations, including the acceptance and processing of mortgage payments and the provision of New?Hampshire customer service and mortgage servicing, including the authority to approve mortgage loan restructuring and other loss mitigation strategies; or
(d) An entity that qualifies for the “small servicer” exemption under the federal Consumer Financial Protection Bureau’s regulation implementing the Real Estate Settlement Procedures Act, as amended.
3 Effective Date. This act shall take effect January 1, 2016.