For Lis Pendens (notice of pending law suit or legal action on property) Information
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Court Registry Foreclosure Balances
Effective July 1, 2006
HB 656 Foreclosure Proceedings by Porth and others
Effective Date: July 1, 2006 applies to offenses committed on or after this date this bill seeks to address problems and abuses related to handling surpluses in that it:
- Creates a legal presumption that the former owner of the property is entitled to the surplus after payment of subordinate lien holders who timely filed their claim. It requires the clerk of court to mail a copy of the final judgment rendered in a foreclosure proceeding to every party to the action, including parties in default. The final judgment must include notice of a potential surplus.
- Requires that certain disclosures be made before a court will honor a transfer or assignment of the surplus.
- Provides that it is deceptive and unfair trade practice to victimize a person, whose home is in foreclosure, creating a civil cause of action.
- Creates a new class of entities to be known as "surplus trustees" and provides for their certification by the Department of Financial Services.
- Creates service fees payable to the clerk of court and the surplus trustee related to foreclosure surpluses.
This bill authorizes the clerk to take the following deductions from surplus funds:
- A $28 fee to be used for the purposes of educating the public regarding foreclosure proceedings.
- A $15 fee to notify surplus trustees of surplus funds.
- A $15 fee for each disbursement of surplus.
- A $15 fee to appoint a surplus trustee, furnishes the surplus trustee with a copy of the final judgment and a certificate of disbursement, and disburse surplus trustees their costs in advance.