SLS 13RS-148 ENGROSSED Page 1 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2013 SENATE BILL NO. 27 BY SENATOR BROOME Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. SEIZURES/SALES. Provides for the Louisiana Home Protection Act. (8/1/13) AN ACT1 To amend and reenact R.S. 13:3852 and Code of Civil Procedure Articles 2293(B)(1) and2 2721(B), relative to seizure and sale of property; to provide relative to notice to3 judgment debtors in money judgments after seizure of property; to provide for the4 type of service and timing of notice of seizure of property; to provide for notice of5 the possibility of a change in scheduled sale dates of seized property; to provide for6 the information to be included in notice of seizure of property and applicable sale7 dates; and to provide for related matters.8 Be it enacted by the Legislature of Louisiana:9 Section 1. R.S. 13:3852 is hereby amended and reenacted to read as follows:10 ยง3852. Notices of seizure11 A. The sheriff to whom the writ is directed shall make three notices setting12 forth the title of the action or proceeding, its docket number, the court which issued13 the writ, the amount of the judgment or claim specified in the writ, an exact copy of14 the description of the immovable property furnished him in accordance with R.S.15 13:3851, and the fact that the sheriff is seizing the described property, in accordance16 with Code of Civil Procedure Article 2293, information as provided in Paragraph17 SB NO. 27 SLS 13RS-148 ENGROSSED Page 2 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. B concerning the property owner's rights and the availability of housing1 counseling services, and, if applicable, the date of the first scheduled sale of the2 property. If the immovable property to be seized is owned by more than one party,3 the sheriff shall make an additional notice for each additional party. No other notice4 of seizure shall be required.5 B. The following form may shall be used for these notices by the sheriff:6 "Notice is hereby given that I am this day seizing, in accordance with the7 provisions of R.S. 13:3851 through 13:3861, the following described immovable8 property, to wit: _______________________________________ as the property of9 ____________, under a writ of ______________, issued on the ______ day of10 _________, _____, by the ____________ District Court for the Parish of11 _______________________________, in the matter entitled ______________12 versus___________________, No. _______ of its docket, to satisfy a claim of13 $___________, interest and costs, this ____ day of __________, _____. This matter14 is scheduled for sheriff's sale on ________day of________, ________,15 at_______A.M./P.M., or any day thereafter as scheduled by the sheriff. Please be16 aware that the sheriff's sale date may change. You may contact the sheriff's17 office to find out the new date when the property is scheduled to be sold. The18 new sale date will also be published in the local newspaper in accordance with19 R.S. 43:203. If the seized property is residential property, you may be afforded20 the opportunity to bring your account in good standing by entering into a loss21 mitigation agreement with your lender, or by paying all of your past due22 payments plus permitted costs and expenses within the time permitted by law23 for reinstatement of your account. You are strongly encouraged to obtain the24 services of a housing counselor, bankruptcy attorney or other competent legal25 counsel. If you cannot afford to pay an attorney, you may be able to qualify for26 free legal services. Foreclosure prevention counseling services, including loss27 mitigation, are provided free of charge. To find a local housing counseling28 agency approved by the U.S. Department of Housing and Urban Development,29 SB NO. 27 SLS 13RS-148 ENGROSSED Page 3 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. you may call the U.S. Department of Housing and Urban Development or the1 Louisiana Housing Corporation.2 3 _______________________,4 Sheriff5 Parish of _________________6 By: _____________________"7 C. The sheriff shall not be required to serve any further notice of rescheduled8 sale dates provided he has not returned the writ to the clerk of court.9 Section 2. Code of Civil Procedure Articles 2293(B)(1) and 2721(B) are hereby10 amended and reenacted to read as follows:11 Art. 2293. Notice to judgment debtor; appointment of attorney12 * * *13 B. (1) After the seizure of property, and at least forty-five days prior to the14 initial scheduled sale date, the sheriff shall serve promptly upon the judgment15 debtor a written notice of the seizure and a list of the property seized, in the manner16 provided for service of citation. Such notice of seizure shall be accomplished by17 personal service or domiciliary service. If service cannot be made on the judgment18 debtor or his attorney of record, the court shall appoint an attorney upon whom19 service may be made. The notice of seizure shall be substantially similar to in20 accordance with the form provided in R.S. 13:3852, and, as provided in R.S.21 13:3852(B), shall include information concerning the availability of housing22 counseling services, as well as the time, date, and place of the sheriff's sale.23 * * *24 Art. 2721. Seizure of property; notice25 * * *26 B. At least forty-five days prior to the initial scheduled sale date, The the27 sheriff shall serve upon the defendant a written notice of the seizure of the property.28 Such notice of seizure shall be accomplished by personal service or domiciliary29 SB NO. 27 SLS 13RS-148 ENGROSSED Page 4 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. service. The notice of seizure shall be in accordance with the form provided in1 R.S. 13:3852 and, as provided in R.S. 13:3852(B), shall include information2 concerning the availability of housing counseling services, as well as the time,3 date and place of the sheriff's sale.4 * * *5 Section 3. The provisions of this Act shall be known and may be cited as the6 Louisiana Home Protection Act.7 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Julie J. Baxter. DIGEST Broome (SB 27) Present law provides that, for notices of seizure, the sheriff to whom the writ is directed shall make three notices setting forth the title of the action, its docket number, the court which issued the writ, the amount of the judgment or claim specified in the writ, an exact copy of the description of the immovable property furnished him, the fact that the sheriff is seizing the property, and the date of the first scheduled sale of the property. Proposed law provides that, in addition to those items, the sheriff's notice of seizure shall provide information concerning the availability of housing counseling services. Present law provides that the sheriff may use the form set out in R.S. 13:3852 for a notice of seizure. Proposed law provides that the sheriff shall use the form set out in R.S. 13:3852 for a notice of seizure. Present law provides the form the sheriff may use for a notice of seizure. Proposed law adds to the form the sheriff shall use for notice of seizure information that the sheriff's sale date may change and that the defendant (judgment debtor) may contact the sheriff's office to find out the new date when the property is scheduled to be sold, and that the new sale date will be published in the local newspaper. Further provides that the notice of seizure shall contain information that, if the seized property is residential property, the defendant may be afforded the opportunity to bring his account in good standing by entering into a loss mitigation agreement with his lender, or by paying all his past due payments plus permitted costs and expenses within the time permitted by law for reinstatement of his account. Proposed law further provides that the notice of seizure shall also indicate that the defendant (judgment debtor) is strongly encouraged to obtain the services of a housing counselor, bankruptcy attorney or other competent legal counsel. Further includes notice to defendant that, if he cannot afford to pay an attorney, he may be able to qualify for free legal services. Proposed law further provides that foreclosure prevention counseling services, including loss mitigation, are provided free of charge. Further includes in the form for notice of seizure advice that the U.S. Department of Housing and Urban Development and the Louisiana Housing Corporation provide local housing counseling services. SB NO. 27 SLS 13RS-148 ENGROSSED Page 5 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Present law provides that after seizure of property, the sheriff shall serve promptly upon the judgment debtor a written notice of seizure and list of property seized, in the manner provided for service of citation. If service cannot be made on the judgment debtor or his attorney of record, the court shall appoint an attorney to serve. The notice of seizure shall be substantially similar to the form provided in R.S. 13:3852. Proposed law provides that the sheriff's service of the notice of seizure shall be at least 45 days prior to the scheduled sale date, and shall be accomplished by personal or domiciliary service. Proposed law further provides that the notice of seizure shall be in the form provided in R.S. 13:3852, and provides that the form shall include information concerning the availability of housing counseling services, as well as time, date, and place of sheriff's sale. Present law provides that, in the execution of a writ of seizure and sale, the sheriff shall serve upon the defendant a written notice of the seizure of the property. Proposed law provides that the sheriff shall serve such written notice upon the defendant by personal or domiciliary service at least 45 days prior to the scheduled sale date. Proposed law further provides that the notice of seizure shall be in accordance with the form provided in R.S. 13:3852, and provides that the form shall include information concerning the availability of housing counseling services, as well as the time, date, and place of the sheriff's sale. Effective August 1, 2013. (Amends R.S. 13:3852 and C.C.P. Arts. 2293(B)(1) and 2721(B)) Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Judiciary A to the original bill 1. Removes proposed requirement that the sheriff serve amended notices each time the sheriff's sale date changes. 2. Adds notification in sheriff's form notice that sheriff's sale date may change, that the new sale date may be obtained by contacting the sheriff's office, and that the new sale date will be published in the local newspaper. 3. Adds notification that the judgment debtor is strongly encouraged to obtain the services of a housing counselor, bankruptcy attorney or other competent legal counsel, and that if the judgment debtor cannot afford to pay an attorney, he may be able to qualify for free legal services. 4. Changes the proposed required time period between sheriff's service of the notice of seizure on the judgment debtor and the sheriff's sale date from 90 days to 45 days.