Bill Text: MS SB2332 | 2019 | Regular Session | Introduced
Bill Title: Residential property foreclosures; prohibit unless 90-day written notice is given.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Failed) 2019-02-05 - Died In Committee [SB2332 Detail]
Download: Mississippi-2019-SB2332-Introduced.html
MISSISSIPPI LEGISLATURE
2019 Regular Session
To: Business and Financial Institutions
By: Senator(s) Dawkins, Jackson (11th), Jordan
Senate Bill 2332
AN ACT TO PROHIBIT FORECLOSURE ON RESIDENTIAL PROPERTY UNLESS THE MORTGAGEE OR HOLDER OF THE MORTGAGE GIVES THE MORTGAGOR 90 DAYS' WRITTEN NOTICE; TO PRESCRIBE THE CONTENTS OF THE NOTICE TO FORECLOSE; TO REQUIRE THE MORTGAGEE TO NOTIFY THE COMMISSIONER OF BANKING AND CONSUMER FINANCE OF THE DATE OF THE FORECLOSURE SALE, THE PURCHASE PRICE OBTAINED AT THE SALE, AND A COPY OF THE NOTICE TO FORECLOSE; TO REQUIRE THE COMMISSIONER OF BANKING AND CONSUMER FINANCE TO MAINTAIN A DATABASE OF CERTAIN FORECLOSURE ACTIVITY INFORMATION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) After a breach of condition of a mortgage loan secured by residential property in the State of Mississippi, a mortgagee or holder of the mortgage shall not proceed against the mortgaged premises under a power of sale unless the mortgagee or holder of the mortgage gives the mortgagor the notice described in this section.
(2) The notice shall be in writing and shall be mailed, postage prepaid by certified mail with return receipt requested, to the mortgagor at his last address then known to the mortgagee, at least ninety (90) days before exercising any rights under a power of sale.
(3) The notice shall conspicuously state the rights of the mortgagor upon default in substantially the following form:
The heading shall read: "Notice of Intent to Foreclose and Right to Cure." The body of the notice shall read: "You are now in default on a mortgage loan transaction dated _______. This mortgage loan is secured by property located at _______. This loan was originated by (name of mortgagee), assigned to _______ (if applicable) and is being serviced by _______ (if applicable). The mortgage broker/mortgage originator for this mortgage loan transaction was _______. You may cure your default by paying all sums due on the mortgage loan on or before (a date which is at least ninety (90) days after the notice has been mailed). If you pay this amount within the time allowed, you are no longer in default and may continue on with the transaction as though the default had not occurred. You may contact the mortgagee or mortgagee's agent at (telephone number of mortgagee or mortgagee's agent) in order to obtain the amount due to cure the default on your mortgage loan.
If you do not cure your default by the date stated above, (name of mortgagee) may begin foreclosure proceedings against you, and you could lose your home."
(4) A copy of the notice described in this section shall be filed with the Commissioner of Banking and Consumer Finance and shall include the rate of interest on the loan and whether it was a variable or fixed rate of interest. The filing fee for the notice shall be in an amount determined by the commissioner.
(5) No attorney's fees or other fees or charges other than per diem interest may be charged to the mortgagor during the mortgagor's ninety-day right to cure.
(6) If, after receiving a Notice of Intent to Foreclose and Right to Cure from the mortgagee under this section, the mortgagor fails to cure a default on a mortgage loan secured by residential property within the time permitted by the notice (which shall be at least ninety (90) days after the notice has been mailed), the mortgagee may do all acts authorized or required under the power of sale. If the residential property securing the mortgage loan is sold at a foreclosure sale, the mortgagee shall notify the commissioner in writing of the date of the foreclosure sale, the purchase price obtained at the sale, and shall include a copy of the notice required under this section.
(7) For the purposes of this section, the following terms shall have the following meanings:
(a) "Commissioner" means the Commissioner of Banking and Consumer Finance of the State of Mississippi.
(b) "Default" means a condition in which a homeowner is one or more months in arrears on the mortgage payments.
(c) "Purchaser" means any person who acquires title to residential property.
(d) "Transfer of title" means the transfer of a mortgagor's interest to a purchaser by purchase agreement, option to purchase, lease or any other means, or by the creation of a mortgage or other lien or encumbrance that allows the purchaser to obtain legal or equitable title to all or part of the property.
(8) The transfer of title to residential property by a mortgagor who is in default or foreclosure during the time of default or foreclosure, made in contemplation of a subsequent conveyance of an interest back to the mortgagor by the purchaser, that allows the homeowner to regain possession of the residential property is prohibited unless the purchaser is a spouse, parent, grandparent, child, grandchild, sibling, aunt or uncle of the mortgagor.
(9) The commissioner shall maintain a foreclosure database that shall include, but not be limited to, foreclosure activity by mortgage lenders, mortgage holders and mortgage servicers, as well as the mortgage brokers and loan originators who placed these mortgage loans in the state, including information relative to the original mortgagee, and any subsequent assignee. Based on the information received, the commissioner shall produce a report at least annually to track developments and trends of mortgage foreclosure on residential property in the state, including, but not limited to, an analysis of the preforeclosure notices submitted to the commissioner compared to the final foreclosure notices, any trends or patterns relative to the geographic location of the residential properties, and interest rates. The report shall be available to the public upon request, and the commissioner shall make it available in any other manner that he may choose.
SECTION 2. This act shall take effect and be in force from and after July 1, 2019.
