HB 2623 has become law.  It is effective November 1, 2008 and its provisions expire in October 31, 2010. This legislation is described as "An Act to create an emergency program to reduce home foreclosures and to authorize the commissioner of banks to use funds for home foreclosure prevention".

This bill imposes additional requirements on "mortgage servicers" who enforce "subprime loans". Included in this bill are;

• Direction to establish an electronic foreclosure information database and discusses information submission requirements
• Direction to establish the "State Home Foreclosure Prevention Project" (the "Project"). Using the aformentioned database, the Project is to 'seek solutions to avoid foreclosures for certain subprime loans". Includes the authority for a one time extension of 30 days for the foreclosure filing date in certain circumstances.
• Requirement that foreclosing lenders include in the initial foreclosure notice either a statement of compliance with the subprime preforeclosure notification requirement or a statement that the loan is not "subprime" as defined in the bill. If the Clerk of the Superior ourt determines that the certification is "materially inaccurate" it may be grounds for dismissal of the foreclosure action without prejudice and for payment of borrower costs defending the action.

To view the bill in its entirety, please click here.

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 500 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.