SB 138

Abstract

Amends the Mortgage Foreclosure Article of the Code of Civil Procedure in relation to short sales of property. Provides that, if an offer to purchase either a mortgage or residential property is made by an entity with a tax-exempt filing status under Section 501(c)(3) of the Internal Revenue Code for the purpose of reselling that mortgage or residential property to the mortgagor, and financing for the repurchase will be provided by a certified community development financial institution, an affidavit, statement, agreement, or addendum limiting ownership or occupancy of the residential property by the mortgagor shall not provide a basis to avoid a sale or transfer, nor is it enforceable against the acquiring entity or any real estate broker, mortgagor, or settlement agent named in the affidavit, statement, agreement, or addendum. Provides that, at the time of an offer, specified disclosures shall be made to the mortgagee in connection with any purchase of a sale. Provides that, upon request by the mortgagee, a certified community development financial institution shall provide documentation evidencing its current certification status. Effective immediately. Senate Committee Amendment No. 1 Provides that "residential property" is limited to the primary (rather than the principal) residence of a person. Provides that specified disclosures shall be made to the mortgagee by the mortgagor. Provides that nothing in the new provisions shall impair, abrogate, or abridge in any manner the rights of the mortgagee to accept or reject an offer to purchase either a mortgage or residential property, nor shall it give rise to a cause of action.