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PC 711

Para enmendar el Artículo 2, inciso (d) de la Ley Núm. 184-2012, según enmendada, conocida como “Ley para Mediación Compulsoria y Preservación de tu Hogar en los Procesos de Ejecuciones de Hipotecas de una Vivienda Principal”, a los fines de establecer que el proceso de mediación compulsoria aplicará también a los préstamos de índole comercial, cuando estos estén garantizados con la residencia principal del deudor.

2025-2028 Session

Extends mandatory mediation to foreclosures involving commercial loans secured by a borrower's principal residence, helping homeowners avoid foreclosure.

Referido a Comisión(es)
0
WeVote Research Nonpartisan
Bill Summary · PC 711

Summary of Bill PC 711

Overview

Bill PC 711 seeks to amend Article 2, inciso (d) of Law Núm. 184-2012, commonly known as the “Ley para Mediación Compulsoria y Preservación de tu Hogar en los Procesos de Ejecuciones de Hipotecas de una Vivienda Principal.” The proposed amendment would extend the mandatory mediation process to certain commercial loans when those loans are secured by the debtor’s principal residence. The bill was introduced on June 10, 2025, and is currently referred to one or more committees.

Purpose and Intent

  • Expand access to the mandatory mediation program so that homeowners whose principal residence also serves as collateral for a commercial loan can benefit from mediation.
  • Provide a structured process intended to help homeowners avoid foreclosure by enabling negotiation between the borrower and the lender (or mortgage servicer) before foreclosure proceeds move forward.

Key Provisions and Changes

  • Amends Article 2, inciso (d) of Law 184-2012 to broaden the scope of compulsory mediation.
  • Applies the compulsory mediation framework to foreclosures involving commercial-type loans that are secured by the borrower’s principal residence.
  • Maintains the core objective of the existing law: to preserve the home and promote alternative resolutions through mediation rather than immediate foreclosure.

Note: Specific operational details (e.g., mediation timelines, the role of mediators, required notifications, or how “commercial” loans are defined in practice) are not provided in the available summary and would be clarified in the bill’s text and any implementing regulations.

Who Would Be Affected

  • Debtors/homeowners who have a principal residence that also serves as collateral for a commercial loan.
  • Lenders and mortgage servicers involved in such loans.
  • Legal practitioners representing homeowners or lenders in foreclosure and mediation proceedings.

Procedural and Timeline Aspects

  • Introduced: June 10, 2025.
  • Actions to date: Radicado; appears in the First Reading in the Chamber; Referido a Comisión(es) (referred to committees) on June 10, 2025.
  • Next steps: Committee hearings and potential amendments, followed by floor consideration and voting, depending on committee and chamber schedules.

Potential Impacts

  • Increased use of mediation for foreclosures involving certain mixed-use or commercially-backed residential loans.
  • Possible changes to foreclosure timelines and negotiation dynamics as more cases enter mediation.
  • Administrative and compliance considerations for lenders to adapt to the expanded scope.

Status

  • Classification: bill
  • Current status: Referred to committees; remains at early stage in the legislative process.

If you’d like, I can tailor this summary for a specific audience (homeowners, lenders, policymakers) or compare it to the current law to highlight what would change in practical terms.

Compiled from official sources — confirm details with the bill’s official record.

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