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Bill

A 5966

Relates to requiring notification by mortgagees commencing foreclosure actions to aid in the identification and improvements of at-risk properties

2025 Regular Session Introduced by Linda Rosenthal

Bill A 5966 requires lenders to notify stakeholders when starting foreclosure, helping identify at-risk properties and enabling timely support for homeowners and communities.

REFERRED TO JUDICIARY
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Bill Summary · A 5966

Summary of Bill A 5966

Bill Information

  • Bill Number: A 5966
  • Title: Relates to requiring notification by mortgagees commencing foreclosure actions to aid in the identification and improvements of at-risk properties
  • Status: Referred to Judiciary
  • Introduced On: February 25, 2025
  • Classification: Bill

Purpose and Intent

Bill A 5966 aims to enhance the identification and management of at-risk properties by mandating that mortgagees (lenders) provide notification when they initiate foreclosure actions. The intent is to improve communication and transparency regarding properties that may be in danger of foreclosure, thereby allowing for timely interventions and support for homeowners and communities.

Key Provisions

  • Notification Requirement: Mortgagees must notify relevant parties when they commence foreclosure proceedings. This notification is intended to ensure that local governments, community organizations, and other stakeholders are aware of properties at risk of foreclosure.
  • Identification of At-Risk Properties: The bill seeks to create a system for identifying properties that are at risk of foreclosure, which can help in targeting resources and assistance to those areas.
  • Support for Interventions: By requiring notification, the bill aims to facilitate community efforts to improve and stabilize neighborhoods affected by foreclosures, potentially reducing the negative impacts on property values and community health.

Affected Parties

  • Mortgagees: Lenders who initiate foreclosure actions will be required to comply with the new notification requirements.
  • Homeowners: Individuals facing foreclosure will benefit from increased awareness and potential support from community organizations and local governments.
  • Local Governments and Community Organizations: These entities will gain access to information about at-risk properties, enabling them to mobilize resources and support for affected homeowners and neighborhoods.

Procedural Aspects

  • Current Status: As of February 25, 2025, the bill has been referred to the Judiciary Committee for further consideration.
  • Related Bills: This bill is related to several prior-session bills, including:
    • A 6143
    • A 698
    • A 1850
    • A 448

These related bills may provide context or additional measures concerning foreclosure and property management.

Conclusion

Bill A 5966 represents a proactive approach to addressing the challenges posed by foreclosures in communities. By requiring mortgagees to notify relevant parties of foreclosure actions, the bill aims to foster collaboration and support for homeowners, ultimately contributing to the stabilization of at-risk properties and neighborhoods.

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

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