PRINTER'S NO.  228

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

222

Session of

2009

  

  

INTRODUCED BY GREENLEAF, WASHINGTON, ERICKSON, BOSCOLA, COSTA, STACK, WILLIAMS AND FERLO, FEBRUARY 19, 2009

  

  

REFERRED TO URBAN AFFAIRS AND HOUSING, FEBRUARY 19, 2009  

  

  

  

AN ACT

  

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

19

residential mortgage that is subject to execution to enforce

 


1

a residential mortgage shall be scheduled for a conciliation

2

conference prior to the entry of judgment in the foreclosure

3

action. The property must be located in this Commonwealth and

4

be a one-family or two-family, owner-occupied structure.

5

(2)  A mortgage foreclosure action involving real

6

property that is neither owner-occupied nor residential does

7

not qualify for a conciliation conference under this section.

8

(d)  Complaint and notification.--Once a mortgage foreclosure

9

action is initiated by a mortgagee with the filing of a

10

complaint in the county prothonotary's office, the service of

11

the complaint shall include a notice from the court of common

12

pleas informing the mortgagor of the court's residential

13

mortgage foreclosure conciliation program and either provide a

14

scheduled date and time for the conciliation conference or

15

otherwise advise the defendant of the right to attend a

16

conciliation conference prior to the entry of a judgment in the

17

foreclosure action and the process required to schedule such a

18

conference. The mortgagee or the mortgagee's legal

19

representative shall also be notified of the scheduled

20

conciliation conference.

21

(e)  Conciliation conference.--

22

(1)  The conciliation conference shall be conducted by a

23

civil case manager or other person designated by the court, a

24

judge pro tempore who possesses experience in the subject

25

matter or a judge of the court of common pleas.

26

(2)  The conciliation conference shall address all issues

27

of foreclosure, including:

28

(i)  Whether the mortgagor is represented and, if not

29

represented, whether volunteer counsel may be available

30

and appointed.

- 2 -

 


1

(ii)  Whether the mortgagor met with a representative

2

of a consumer credit counseling agency.

3

(iii)  Whether the consumer credit counseling agency

4

prepared an assessment or report providing options to

5

help resolve the foreclosure action.

6

(iv)  Copies of any completed application for

7

mortgage or financial assistance.

8

(v)  Mortgagor's income and expense information.

9

(vi)  Mortgagor's employment status.

10

(vii)  Restructuring of the mortgage debt.

11

(viii)  Whether the case may proceed to sheriff sale,

12

if there is no prospect of an amicable resolution.

13

(f)  Effect of failure to attend conference.--

14

(1)  If a mortgagor fails to appear for a scheduled

15

conciliation conference, the requirement for the conference

16

shall be deemed satisfied upon verification that the required

17

notice was served and, if so, an order shall be issued

18

authorizing the mortgagee to proceed with the action.

19

(2)  If the mortgagee or legal representative of the

20

mortgagee fails to appear for a scheduled conciliation

21

conference, the case shall not proceed until a rescheduled

22

conference is held.

23

(g)  Reporting.--The court shall compile information relating

24

to the results of the conciliation program and report that

25

information at least annually to the Administrative Office of

26

Pennsylvania Courts to be included in its annual report.

27

(h)  Sheriff sale.--Notwithstanding any other provision of

28

law to the contrary, primary residences which are subject to

29

execution to enforce a residential mortgage cannot proceed to a

30

sheriff sale until a conciliation conference is held or the

- 3 -

 


1

mortgagor fails to appear for the conference as set forth in

2

this section.

3

Section 2.  This act shall take effect in 60 days. 

- 4 -

 


See other bills
under the
same topic