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2009 -- S 1002 SUBSTITUTE A | |
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LC02851/SUB A | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2009 | |
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A N A C T | |
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RELATING TO PROPERTY -- MORTGAGE FORECLOSURE AND SALE | |
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Introduced By: Senators Crowley, Metts, Pichardo, C Levesque, and Perry | |
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Date Introduced: June 18, 2009 | |
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Referred To: Senate Judiciary | |
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It is enacted by the General Assembly as follows: | |
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SECTION 1. Chapter 34-27 of the General Laws entitled "Mortgage Foreclosure and |
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Sale" is hereby amended by adding thereto the following section: |
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34-27-3.1. Foreclosure counseling. – (a) No less than forty-five (45) days prior to |
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initiating any foreclosure of real estate pursuant to subsection 34-27-4(b), the mortgagee shall |
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provide to an individual consumer mortgagor written notice of default and the mortgagee’s right |
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to foreclose by first class mail at the address of the real estate and, if different, at the address |
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designated by the mortgagor by written notice to the mortgagee as the mortgagor’s address for |
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receipt of notices. |
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(b) The written notice required by this section shall be in English and Spanish and, |
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provided the same is then available, shall advise the mortgagor of the availability of counseling |
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through HUD-approved mortgage counseling agencies and, the toll-free telephone number and |
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website address maintained to provide information regarding no-cost HUD-approved mortgage |
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counseling agencies in Rhode Island. The written notice may also contain any other information |
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required under federal law. A form of written notice meeting the requirements of this section |
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shall be promulgated by the department of business regulation for use by mortgagees at least |
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thirty (30) days prior to the effective date of this section. Counseling shall be provided at no cost |
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to the mortgagee. |
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(c) Failure of the mortgagee to provide notice to the mortgagor as provided herein shall |
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render the foreclosure void, without limitation of the right of the mortgagee thereafter to |
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reexercise its power of sale or other means of foreclosure upon compliance with this section. The |
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mortgagee shall include in the foreclosure deed an affidavit of compliance with this section. |
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(d) As used herein and in this chapter, the term “HUD” means the United States |
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Department of Housing and Urban Development and any successor to such department. |
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SECTION 2. This act shall take effect sixty (60) days after passage. |
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LC02851/SUB A | |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO PROPERTY -- MORTGAGE FORECLOSURE AND SALE | |
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This act would provide for foreclosure counseling and written notice of its availability |
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and would be mailed to the mortgagor forty-five (45) days prior to initiating foreclosure |
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proceeding. |
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This act would take effect sixty (60) days after passage. |
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LC02851/SUB A | |
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