THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

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

Amending Title 42 (Judiciary and Judicial Procedure) of the

Pennsylvania Consolidated Statutes, in actions, proceedings

and other matters generally, providing for mortgage

foreclosure conciliation programs.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Title 42 of the Pennsylvania Consolidated

Statutes is amended by adding a section to read:

§ 5109.  Mortgage foreclosure conciliation programs.

(a)  Program establishment.--The court of common pleas in

each county shall establish a residential mortgage foreclosure

conciliation program to assist mortgagors and mortgagees in

achieving a mutually agreeable resolution to a mortgage

foreclosure action.

(b)  Model guidelines.--The Pennsylvania Supreme Court shall

develop model guidelines for the implementation of this section.

(c)  Eligibility requirements.--

(1)  A mortgage foreclosure action involving a

residential mortgage that is subject to execution to enforce

a residential mortgage shall be scheduled for a conciliation

conference prior to the entry of judgment in the foreclosure

action. The property must be located in this Commonwealth and

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

(2)  A mortgage foreclosure action involving real

property that is neither owner-occupied nor residential does

not qualify for a conciliation conference under this section.

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

action is initiated by a mortgagee with the filing of a

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

the complaint shall include a notice from the court of common

pleas informing the mortgagor of the court's residential

mortgage foreclosure conciliation program and either provide a

scheduled date and time for the conciliation conference or

otherwise advise the defendant of the right to attend a

conciliation conference prior to the entry of a judgment in the

foreclosure action and the process required to schedule such a

conference. The mortgagee or the mortgagee's legal

representative shall also be notified of the scheduled

conciliation conference.

(e)  Conciliation conference.--

(1)  The conciliation conference shall be conducted by a

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

judge pro tempore who possesses experience in the subject

matter or a judge of the court of common pleas.

(2)  The conciliation conference shall address all issues

of foreclosure, including:

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

represented, whether volunteer counsel may be available

and appointed.

(ii)  Whether the mortgagor met with a representative

of a consumer credit counseling agency.

(iii)  Whether the consumer credit counseling agency

prepared an assessment or report providing options to

help resolve the foreclosure action.

(iv)  Copies of any completed application for

mortgage or financial assistance.

(v)  Mortgagor's income and expense information.

(vi)  Mortgagor's employment status.

(vii)  Restructuring of the mortgage debt.

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

if there is no prospect of an amicable resolution.

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

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

conciliation conference, the requirement for the conference

shall be deemed satisfied upon verification that the required

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

authorizing the mortgagee to proceed with the action.

(2)  If the mortgagee or legal representative of the

mortgagee fails to appear for a scheduled conciliation

conference, the case shall not proceed until a rescheduled

conference is held.

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

to the results of the conciliation program and report that

information at least annually to the Administrative Office of

Pennsylvania Courts to be included in its annual report.

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

law to the contrary, primary residences which are subject to

execution to enforce a residential mortgage cannot proceed to a

sheriff sale until a conciliation conference is held or the

mortgagor fails to appear for the conference as set forth in

this section.

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