Replaces everything after the enacting clause. Amends the Code of Civil Procedure. Provides that a foreclosure complaint must specify the real party in interest (instead of the capacity in which the plaintiff brings the foreclosure action) and have attached to it a copy of the mortgage and note, but if they are unavailable, an affidavit shall be attached to the complaint that states information about all holders of the note and what attempts were made to obtain the note. Provides that in all foreclosure actions the plaintiff shall attach a notice to the complaint and summons stating the homeowner's rights concerning possession, ownership, reinstatement, redemption, and other matters. Provides a procedure for a mortgagor to make a demand for loan payoff information that includes payoff demand statement requirements and other matters. Provides that the court may award reasonable attorney's fees and costs to the prevailing party in a foreclosure action. Effective January 1, 2009.
Replaces everything after the enacting clause with substantially similar provisions of the bill as amended but with changes that include the following: (1) Provides that in all foreclosure actions the plaintiff shall attach to the complaint and summons a Homeowner's Notice, in English and Spanish, concerning possession, ownership, reinstatement, redemption, surplus, workout options, financial and legal advice, and other matters. (2) Provides that the Spanish translation of the Homeowner's Notice shall be prepared by the Attorney General, posted on the website of the Attorney General, and used in a substantially similar form. (3) Provides for a mortgagee to provide a "pay off demand statement" to a mortgagor. (4) Provides that the court may award reasonable attorney's fees and costs to the defendant who prevails in a motion, including an affirmative defense or counterclaim, or in the foreclosure action; however, this does not abrogate contract terms in the mortgage or other written agreement that allow the mortgagee to pursue attorney's fees and costs. (5) Provides that a defendant who exercises a right to reinstatement or redemption shall not be considered a prevailing party for purposes of awarding attorney's fees. Effective January 1, 2009.