CHAPTER 145
SB 111 – FINAL VERSION
03/30/11 1307s
2011 SESSION
05/09
SENATE BILL 111
AN ACT relative to short sales of a homeowner’s residence.
SPONSORS: Sen. Boutin, Dist 16
This bill exempts short sales from certain requirements pertaining to foreclosure consultants.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/30/11 1307s
11-1003
05/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT relative to short sales of a homeowner’s residence.
Be it Enacted by the Senate and House of Representatives in General Court convened:
145:1 New Paragraph; Foreclosure Consultants; Definition of Short Sale. Amend RSA 479-B:1 by inserting after paragraph X the following new paragraph:
XI. “Short sale” means the sale of a homeowner’s residence in which the proceeds of the sale, less closing costs, are less than the amount owed, creating a deficit to the seller and in which the sale also results in a short payoff to one or more of the seller’s creditors.
145:2 New Paragraphs; Exemptions from Regulation of Foreclosure Consultants. Amend RSA 479-B:11 by inserting after paragraph I the following new paragraphs:
II. Notwithstanding any provision of the law to the contrary, the provisions of this chapter shall not apply to a person who purchases a homeowner’s residence in a short sale in which:
(a) As consideration for the sale, all liens against the property, including mortgages, were discharged or released;
(b) If, as part of the sale, a deficiency was required by any creditor, the exact terms and conditions of any deficiencies were disclosed to the borrower by the purchaser at least 72 hours before the transfer. The disclosure shall be:
(1) Printed in at least 14-point type and in boldface; and
(2) Dated and personally signed by the homeowner and witnessed and acknowledged by a notary public or a justice of the peace appointed and commissioned by the state of New Hampshire; and
(c) The homeowner received from the purchaser, at least 72 hours before the transfer, a document entitled “notice of short sale.” The document entitled “notice of short sale” shall:
(1) Be printed in at least 14-point type;
(2) Be dated and personally signed by the homeowner and witnessed and acknowledged by a notary public or a justice of the peace appointed and commissioned by the state of New Hampshire;
(3) Contain a prominent statement, printed in at least 16-point type and in boldface, that the homeowner is selling his or her home, will no longer have any ownership of the home after the sale, and will no longer have the right to live in the home after the sale; and
(4) Describe in detail the terms of the sale.
III. Notwithstanding any provision of the law to the contrary, the provisions of this chapter shall not apply to a person who attempts to negotiate a short sale in which the person would purchase the homeowner’s residence as set forth in paragraph II, but does not purchase the homeowner’s residence or arrange for another person to purchase the homeowner’s residence.
145:3 Effective Date. This act shall take effect 60 days after its passage.
Approved: June 7, 2011
Effective Date: August 6, 2011