from Local Attorney, Michael H. Wasserman

Monday, March 3, 2008

More New Pending Legislation for Property Owners

I guess that there just is no limit to what lawmakers can think up - or to their collective genius, to wit:

HB5160 would amend the Mortgage Act to make anyone (buyer or mortgage lender) who is required to deliver funds to complete a real estate closing do so at the closing. (Seems obvious right?) A person who fails to make any required payment at closing would be liable to any party involved in the closing who incurs a loss or expense because of the delay, plus costs and reasonable attorney's fees.

HB5189 would amend the Condominium Property Act to prohibit Condominium Associations and other "common interest communities" from barring unit owners from leasing up to one fifth of the units. Sure hope you dont mind if your neighbor wants to rent his unit out....

HB5896 would amend the Code of Civil Procedure to add one more hoop for mortgage lenders to jump through (one more "safeguard" for borrowers behind on their mortgage payments) before they can start a foreclosure: The bank would have to contact the borrower advising that it is about to start a foreclosure in the near future that the borrower could ask for an in-person meeting to review refinancing the mortgage loan. (What, the past-due notice is threatening enough yet?) Provides the notice must also contain a list of HUD-certified credit counselors. Provides that the bank must wait at least 30 days after the date of the in-person meeting, or 30 days after the notice was served before the action to foreclose could be commenced.

SB2131 would also amend the Code of Civil Procedure, to BAR all residential forecloses until January 1, 2010 if the mortgagor borrower pays the current interest and reserves or escrow payments for property taxes and insurance (!) Wow - that arm or fixed rate loan Uncle Gus took out five years ago just turned into an 18 month, interest only loan - how cool is that?

HB4352 will require landlords to give at least 2 days advance notice before entering a tenants unit for anything but an emergency or an unexpected/necessary repair and that the access can only be made between 9:00 a.m. and 8:00 p.m. or at any other time requested by the tenant (which would be presumed to be a reasonable request).