Synopsis As Introduced Amends the Mortgage Foreclosure Article of the Code of Civil Procedure. Defines "loss mitigation" as a program or mechanism designed to maximize the opportunity for a mortgagor to retain ownership of the mortgaged real estate and cure delinquencies on his or her mortgage or for a mortgagor and mortgagee to mitigate losses that would result from foreclosure by using alternatives to foreclosure. Provides that a foreclosure complaint shall include a statement as to loss mitigation. Provides that a judgment of foreclosure shall include a finding by the court that the mortgagee has complied with applicable loss mitigation requirements or there are no applicable loss mitigation requirements, and provides that if the court finds that the mortgagee has not complied with applicable loss mitigation requirements, the court shall stay the matter until the court determines that the mortgagee has complied with those requirements. Adds failure by the mortgagee to fulfill applicable loss mitigation requirements as a condition under which the court shall not enter an order confirming a judicial sale.
Deletes everything after the enacting clause. Further amends the Code of Civil Procedure. Provides that the court shall set aside a judicial sale, prior to the sale confirmation, if the mortgagor proves that the mortgagor applied for assistance under the Making Home Affordable Program established by the Department of the Treasury pursuant to federal law, and the mortgaged real estate was sold in material violation of the program's judicial sale requirements. These provisions become inoperative on January 1, 2013 for all actions filed after December 31, 2012, as to which the mortgagor did not apply for assistance under the program by December 31, 2012. Effective immediately.