Amendment #2 to S1987

Dempsey Amendment

Mr. Dempsey of Haverhill moves to amend the bill in section 2, in lines 21 to 34, inclusive, by striking out the text contained in those lines and inserting in place thereof the following:-

The prior paragraph shall not apply when: (i) a legal action to challenge the validity of the foreclosure sale is commenced by any party entitled to notice of sale under section 14 in a court of competent jurisdiction and a true and correct copy of the complaint or other pleading asserting such challenge in the legal action is duly recorded in the registry of deeds for the county or district where the subject real property lies or is duly filed in the land court registry district prior to the deadline; or (ii) a challenge to the validity of the foreclosure sale is asserted as a defense or counterclaim in a legal action in a court of competent jurisdiction by any party entitled to notice of sale under section 14 who continues to occupy the mortgaged premises as such party’s principal place of residence and, within 60 days thereof or prior to the deadline, whichever is later, a true and correct copy of any pleading asserting such challenge in the legal action is duly recorded in the registry of deeds for the county or district where the subject real property lies or is duly filed in the land court registry district, regardless of whether such challenge is asserted prior to the deadline. However, following the entry of a final judgment in such a legal challenge and the final resolution of any appeal of that judgment, the affidavit shall immediately become conclusive evidence of the validity of the sale, if the final judgment concludes that the power of sale was duly exercised. If the final judgment concludes that the power of sale was not duly exercised, the foreclosure sale and affidavit shall be void. If the final judgment does not determine the validity of the foreclosure sale and the deadline for the affidavit to become conclusive has not expired, any party entitled to notice of sale under section 14 may file or assert another legal challenge to the validity of the foreclosure sale under clauses (i) and (ii) above.