Legislature(2007 - 2008)CAPITOL 120

04/30/2007 01:00 PM JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 3 REQUIREMENTS FOR DRIVER'S LICENSE/I.D. TELECONFERENCED
Moved CSHB 3(JUD) Out of Committee
+= HB 151 INDEMNITY CLAUSE IN PUBLIC CONTRACTS TELECONFERENCED
Moved CSHB 151(JUD) Out of Committee
+= HB 225 POSSESSION OF WEAPON WHILE ON BAIL TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 163 PROPERTY FORECLOSURES AND EXECUTIONS TELECONFERENCED
Moved CSHB 163(JUD) Out of Committee
HB 163 - PROPERTY FORECLOSURES AND EXECUTIONS                                                                                 
                                                                                                                                
1:08:26 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS announced that the  first order of business would be                                                               
HOUSE  BILL   NO.  163,  "An   Act  relating  to   real  property                                                               
foreclosures,  executions,  and deeds  of  trust."   [Before  the                                                               
committee was the proposed committee  substitute (CS) for HB 163,                                                               
Version 25-LS0630\K,  Bannister, 4/24/07, which had  been adopted                                                               
as the work draft on 4/27/07.]                                                                                                  
                                                                                                                                
CHAIR RAMRAS referred members to page 3, lines 25-26.                                                                           
                                                                                                                                
1:11:25 PM                                                                                                                    
                                                                                                                                
STEPHAN ROUTH,  Attorney at  Law, Routh  & Crabtree,  APC, stated                                                               
that  what  happens  at  a  foreclosure  sale  is  reinstatement,                                                               
wherein  the   owners  pay  the   delinquent  amounts,   but  the                                                               
reinstatement should have  happened prior to the  auction.  Other                                                               
states have  addressed the problems  associated with  last minute                                                               
reinstatements  by moving  back the  deadline for  reinstatement;                                                               
for example, Washington has set  the reinstatement deadline at 10                                                               
days prior  to the auction, which  in his view, he  remarked, was                                                               
too  long, though  it might  be acceptable  if the  deadline were                                                               
left at 5 days, or perhaps even reduced  to 2 or 3 days.  He said                                                               
another reason  he felt the  reinstatement should occur  prior to                                                               
the  auction  is to  maximize  bidding  for  the benefit  of  the                                                               
borrower, and  reiterated his  belief that  reinstatements should                                                               
not be considered at the time of the auction.                                                                                   
                                                                                                                                
STEPHAN ROUTH said  he calculated that if  the reinstatement date                                                               
were left  at 5  days, as  current law  allows, then  the minimum                                                               
time to  complete foreclosure in  Alaska would be 120  days, with                                                               
90 days for  foreclosure, and 30 days after default  on the loan.                                                               
He  explained  that the  timeframe  for  a foreclosure  does  not                                                               
include  the  three-month  delinquency period  that  institutions                                                               
typically allow prior to initiating  a foreclosure process, which                                                               
makes  the  standard  timeframe for  the  borrower  to  reinstate                                                               
actually closer  to six months.   Under current law,  the parties                                                               
have 5  days prior to  the sale to  reinstate, and in  about 97.3                                                               
percent of  the time  the reinstatement  time is  approximately a                                                               
total of 175 days.   He said that he would  feel satisfied if the                                                               
date were  moved away from  the sale  time, which is  the auction                                                               
date.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  HOLMES  asked  whether   the  owner  often  makes                                                               
payment of the  foreclosure costs within 48 hours  of the auction                                                               
time.                                                                                                                           
                                                                                                                                
STEPHAN ROUTH  responded that payment  close to the date  of sale                                                               
does not  often happen,  but when  it does  occur it  creates big                                                               
problems.                                                                                                                       
                                                                                                                                
REPRESENTATIVE HOLMES  asked whether a two-day  deadline would be                                                               
amenable to Mr. Routh.                                                                                                          
                                                                                                                                
STEPHAN  ROUTH  concurred  that   a  two-day  deadline  would  be                                                               
amenable.                                                                                                                       
                                                                                                                                
REPRESENTATIVE GRUENBERG  indicated that  he supported  a two-day                                                               
deadline.                                                                                                                       
                                                                                                                                
CHAIR  RAMRAS, after  ascertaining  that no  one  else wished  to                                                               
testify, closed public testimony on HB 163.                                                                                     
                                                                                                                                
1:15:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLMES  made  a  motion  to  adopt  a  Conceptual                                                               
Amendment 1,  to replace "five"  with "two"  on page 3,  line 25.                                                       
There being no objection, Conceptual Amendment 1 was adopted.                                                                   
                                                                                                                                
REPRESENTATIVE DAHLSTROM moved  to report the proposed  CS for HB
163, Version 25-LS0630\K, Bannister,  4/24/07, as amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  163(JUD)  was                                                               
reported from the House Judiciary Standing Committee.                                                                           
                                                                                                                                

Document Name Date/Time Subjects