Bill No.: HB0112                  Drafter:  JHR

 

LSO No.:  05LSO-0132              Effective Date:  7/1/2005

 

Enrolled Act No.:  HEA0125

 

Chapter No.:       228

 

Prime Sponsor:     Representative Illoway

 

Catch Title:       Foreclosure sale proceeds.

 

Subject:  Real estate foreclosure sales.

 

Summary/Major Elements:

·        This Bill:

·        Defines "omitted party" and "interested party" for purposes of notice requirements in foreclosure sales;

·        Allows notice to be published in any newspaper of general circulation in the county of the sale;

·        Specifies which parties must be present at a sale, including the foreclosing mortgagee or lienholder, judgment creditor, or an authorized agent of the apropriate party;

·        Specifies the sheriff is not considered the authorized agent of the foreclosing party;

·        Requires the notice to state that other liens or mortgages may exist on the property being sold, which liens or mortgages may not be extinguished by the sale;

·        Specifies which parties are to be provided notice of the sale, including the person in possession, the record holder of title and all mortgagees and lienholders;

·        Requires sale results to be provided to subordinate mortgagees or lienholders, if surplus proceeds exist after satisfying the foreclosing mortgagee;

·        Amends time of public sale from 9:00 a.m. to 10:00 a.m.;

·        Specifies that a sale not in compliance with the sale requirements is void;

·        Provides for postponement of a sale if a necessary party is not present;

·        Provides the act is applicable to real estate foreclosures and execution sales begun on or after July 1, 2005.