HB 5759

Abstract

Amends the Mortgage Foreclosure Article of the Code of Civil Procedure and the State Finance Act. Provides that an attorney appointed by the chief judge of the judicial circuit shall be assigned as a mediator for mandatory foreclosure mediation prior to the filing of a residential real estate foreclosure action. Provides that a mortgagor who is delinquent by more than 45 days may petition for mediation. Provides that, unless a mortgagor has filed for bankruptcy, if a mortgage is delinquent by more than 60 days and the mortgagee intends to foreclose the mortgage, the mortgagee shall file a mediation notice with the circuit clerk. Provides that, upon the filing of a petition for mediation by a mortgagee or the filing of a mediation notice by a mortgagor, the mortgagee shall freeze the mortgagor's account and any obligation to pay any installment on the mortgage loan or any additional charge, fee, or penalty is stayed until a final mortgage modification plan is reached or the mediator's written report is filed with the circuit clerk. Provides that, when filing a foreclosure complaint for residential real estate, the plaintiff shall pay to the court clerk a $100 fee for deposit into the Mandatory Foreclosure Mediation Fund, a special fund in the State treasury. Provides that specified fines shall also be deposited into the Fund. Provides that fees shall be remitted to the State Treasurer and expended for purposes related to mediation. Contains provisions regarding: mailing; qualifications and assignment of mediators; payment to mediators; mediation sessions; counselors employed by approved counseling agencies; conclusion of mediation; fines; reports; limits on mediation; final plans; compliance; liability; waiver; intent; applicability; foreclosure complaints; and other matters. Effective immediately.