Senate passes Quezada bill that would impose penalties for failure to promptly record foreclosure deeds
STATE HOUSE — The Senate has passed legislation introduced by Sen. Ana B. Quezada (D-Dist. 2, Providence) that would impose penalties for failing to promptly record foreclosure deeds, which has led to property blight and public safety issues.
The legislation (2017-S 0388A) would impose a penalty of $300 per month up to an aggregate total of $2,000 upon financial institutions failing to promptly record foreclosure deeds and pay outstanding taxes. Most holders of a private mortgage would be exempt from the penalty requirements.
“There are many abandoned buildings in the cities that not only contribute to urban blight, but more importantly can be dangerous and a public health hazard,” said Senator Quezada. “These buildings can quickly become a nuisance, attracting squatters, vandals and even arsonists.”
While the mortgage company is recorded on the deed when someone buys a home, many time the mortgages are sold and never recorded, making it difficult for the city to track down the owner to secure and clean up the property.
“We’ve even seen cases where mortgage companies will take over a year and a half to record a foreclosure,” said Senator Quezada. “The current fine of $40 just isn’t enough of a deterrent. This legislation tightens the language of the law and stiffens the penalties to motivate mortgage companies to do things in a timely manner.”
The measure now moves to the House of Representatives, which has passed similar legislation (2017-H 5397A) introduced by Rep. Michael Morin (D-Dist. 49, Woonsocket).
For more information, contact:
Daniel Trafford, Publicist
State House Room 20
Providence, RI 02903