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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY McGEEHAN, DALEY, QUINN, BARBIN, CARROLL, D. COSTA, DONATUCCI, FREEMAN, GEORGE, JOSEPHS, KORTZ, MELIO, M. O'BRIEN, PASHINSKI, REICHLEY, SCAVELLO, SIPTROTH, SWANGER AND WALKO, MARCH 23, 2009 |
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| REFERRED TO COMMITTEE ON COMMERCE, MARCH 23, 2009 |
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| AN ACT |
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1 | Amending Title 42 (Judiciary and Judicial Procedure) of the |
2 | Pennsylvania Consolidated Statutes, in actions, proceedings |
3 | and other matters generally, providing for mortgage |
4 | foreclosure conciliation programs. |
5 | The General Assembly of the Commonwealth of Pennsylvania |
6 | hereby enacts as follows: |
7 | Section 1. Title 42 of the Pennsylvania Consolidated |
8 | Statutes is amended by adding a section to read: |
9 | § 5109. Mortgage foreclosure conciliation programs. |
10 | (a) Program establishment.--The court of common pleas in |
11 | each county shall establish a residential mortgage foreclosure |
12 | conciliation program to assist mortgagors and mortgagees in |
13 | achieving a mutually agreeable resolution to a mortgage |
14 | foreclosure action. |
15 | (b) Model guidelines.--The Pennsylvania Supreme Court shall |
16 | develop model guidelines for the implementation of this section. |
17 | (c) Eligibility requirements.-- |
18 | (1) A mortgage foreclosure action involving a |
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1 | residential mortgage that is subject to execution to enforce |
2 | a residential mortgage shall be scheduled for a conciliation |
3 | conference prior to the entry of judgment in the foreclosure |
4 | action. The property must be located in this Commonwealth and |
5 | be a one-family or two-family, owner-occupied structure. |
6 | (2) A mortgage foreclosure action involving real |
7 | property that is neither owner-occupied nor residential does |
8 | not qualify for a conciliation conference under this section. |
9 | (d) Complaint and notification.--Once a mortgage foreclosure |
10 | action is initiated by a mortgagee with the filing of a |
11 | complaint in the county prothonotary's office, the service of |
12 | the complaint shall include a notice from the court of common |
13 | pleas informing the mortgagor of the court's residential |
14 | mortgage foreclosure conciliation program and either provide a |
15 | scheduled date and time for the conciliation conference or |
16 | otherwise advise the defendant of the right to attend a |
17 | conciliation conference prior to the entry of a judgment in the |
18 | foreclosure action and the process required to schedule such a |
19 | conference. The mortgagee or the mortgagee's legal |
20 | representative shall also be notified of the scheduled |
21 | conciliation conference. |
22 | (e) Conciliation conference.-- |
23 | (1) The conciliation conference shall be conducted by a |
24 | civil case manager or other person designated by the court, a |
25 | judge pro tempore who possesses experience in the subject |
26 | matter or a judge of the court of common pleas. |
27 | (2) The conciliation conference shall address all issues |
28 | of foreclosure, including: |
29 | (i) Whether the mortgagor is represented and, if not |
30 | represented, whether volunteer counsel may be available |
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1 | and appointed. |
2 | (ii) Whether the mortgagor met with a representative |
3 | of a consumer credit counseling agency. |
4 | (iii) Whether the consumer credit counseling agency |
5 | prepared an assessment or report providing options to |
6 | help resolve the foreclosure action. |
7 | (iv) Copies of any completed application for |
8 | mortgage or financial assistance. |
9 | (v) Mortgagor's income and expense information. |
10 | (vi) Mortgagor's employment status. |
11 | (vii) Restructuring of the mortgage debt. |
12 | (viii) Whether the case may proceed to sheriff sale, |
13 | if there is no prospect of an amicable resolution. |
14 | (f) Effect of failure to attend conference.-- |
15 | (1) If a mortgagor fails to appear for a scheduled |
16 | conciliation conference, the requirement for the conference |
17 | shall be deemed satisfied upon verification that the required |
18 | notice was served and, if so, an order shall be issued |
19 | authorizing the mortgagee to proceed with the action. |
20 | (2) If the mortgagee or legal representative of the |
21 | mortgagee fails to appear for a scheduled conciliation |
22 | conference, the case shall not proceed until a rescheduled |
23 | conference is held. |
24 | (g) Reporting.--The court shall compile information relating |
25 | to the results of the conciliation program and report that |
26 | information at least annually to the Administrative Office of |
27 | Pennsylvania Courts to be included in its annual report. |
28 | (h) Sheriff sale.--Notwithstanding any other provision of |
29 | law to the contrary, primary residences which are subject to |
30 | execution to enforce a residential mortgage cannot proceed to a |
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1 | sheriff sale until a conciliation conference is held or the |
2 | mortgagor fails to appear for the conference as set forth in |
3 | this section. |
4 | Section 2. This act shall take effect in 60 days. |
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