Amendment ID: S2502-37

Amendment 37

Home Equity Theft

Messrs. Montigny and Tarr move that the proposed new text be amended by inserting after section ____ the following sections:-

“SECTION ___.  Subsection (c) of section 2C of chapter 60 of the General Laws is hereby amended by striking out paragraph (9) and inserting in place thereof the following paragraph:-

(9) A purchaser shall provide notice in accordance with section 53 of this chapter.

SECTION ___. Said section 2C of chapter 60 is hereby amended by striking out subsection (j) and inserting in place thereof the following:-

(j) If the purchaser of a tax receivable on any parcel of real estate subsequently forecloses upon the property, it shall request that the land court approve all reasonable expenses it has incurred and shall provide a notice to the former owner of the right to redeem for this amount within 1 year.  Notice shall be served in the manner required by section 53 of this chapter.

If the land is not redeemed and the purchaser sells the land at auction, the balance of any proceeds above and beyond reasonable expenses as approved by the land court shall be returned to the former owner.  A detailed accounting of these expenses will be provided by the purchaser within 60 days of such sale.

(k) The commissioner shall make and from time to time revise such rules, regulations and guidelines as he determines necessary and appropriate to implement the provisions of this section.

SECTION ___.  Section 53 of chapter 60 of the General Laws is hereby amended by striking the words “may be served in the manner required by law for the service of subpoenas on witnesses in civil cases or may be published” and insert in place thereof the following:- shall be served in the manner required by law for the service of subpoenas on witnesses in civil cases, shall be published

SECTION ___. Said section 53 of chapter 60 is hereby amended by inserting at the end thereof the following paragraph:-

Where the land is residential all notices sent pursuant to this section shall include a uniform notice approved by the attorney general, together with a notice in the five most common languages in the commonwealth that this notice affects important legal rights and should be translated immediately. Such notice shall state in language understandable by a least sophisticated consumer:

(i)That a complaint to foreclose the tax title may be filed on or after a specific date;

(ii)That the tax title may be sold to a third party;

(iii)Why the property was taken and that the owner may redeem the property and the date when the redemption period expires;

(iv)The components of the amount required to redeem the property and the procedure for redemption;

(v)That if a complaint to foreclose the tax title is filed and the owner does not respond by filing an answer the court may enter an order defaulting the order;

(vi)That if a complaint to foreclose the tax title is filed, the owner may respond by filing an answer that requests that the court set the terms by which the owner may redeem the property;

(vii)That if the property is not redeemed, the town or tax purchaser is entitled to receive an order from the land court that completes a transfer of ownership of the property to the town or said purchaser and permanently eliminates any rights the owner has in the property; and

(viii)That if the property is not redeemed, the property may be sold at auction and the owner will likely loses significant equity in the property.

SECTION ___.  Section 62 of chapter 60 of the General Laws is hereby amended by striking out the word “sixteen” and inserting in place thereof the following figure:- 5.

SECTION ___.  Section 64 of chapter 60 of the General Laws is hereby amended by inserting at the end thereof the following:-

Upon issuance of a judgment foreclosing the right of redemption, the land court shall order a public sale via auction of the foreclosed property and order that the balance of any proceeds above and beyond reasonable expenses be returned to the former owner.

SECTION ___. Section 65 of chapter 60 of the General Laws is hereby amended by striking out the word “six” and inserting in place thereof the following:- 12”.