Effective July 1, 2025 a new law went into effect impacting foreclosures of all subordinate (junior) liens on all residential real estate funded for any purpose. The loan applies to all residential loans that were subordinate at the time of the loan origination regardless of the loan's current position.
The new law establishes a new compliance requirement for the servicer or lender (on behalf of all prior servicers or lenders) with the initiation of foreclosure. The servicer (or lender as servicer if the loan is serviced by the lender) must sign under penalty of perjury a Certification of Compliance stating there has not been any unlawful practice during the life of the loan. The Certification of Compliance will be recorded concurrently with the Notice of Default and sent to the borrower.