The dormant docket rule will be implemented within 60 days from April 27, the date the request was submitted to the Legislature, unless the majority members of either the House of Representatives or the Senate disapproved it.
The chief justice said the Superior Court has seen a dramatic increase in the number of foreclosure cases.
“This proposed mortgage foreclosure dormant docket rule permits the plaintiff to request that a mortgage foreclosure action be moved from the active docket to the mortgage foreclosure dormant docket where it may remain for up to 24 months, or more, for good cause shown,” Demapan wrote to Speaker Arnold I. Palacios, R-Saipan, and Senate President Pete P. Reyes, R-Saipan.
The dormant docket rule should help families buy more time to cure their mortgage default, Demapan said.
“This is helpful because it frequently takes a substantial time for the process of negotiation and drafting of agreements under which the property owner may cure the alleged default and prevent foreclosure,” the chief justice said.
Article 4, Section 9(a) of the CNMI Constitution allows the Commonwealth Rules of Civil Procedure to be changed subject to the Legislature’s approval.
Under the dormant docket rule, a plaintiff may request, by motion to the court, that a foreclosure action against him or her be moved from the active docket to the mortgage foreclosure dormant docket for up to 24 months.
If after 24 months no action has been taken on the property up for foreclosure in the dormant docket, the court will dismiss it without further notice and without prejudice, unless a party seeks to extend the 24-month period.
If, however, a foreclosure action has been moved from the dormant docket to the active docket, the new rule will not allow it to be transferred back to the dormant docket unless there’s a court approval.
The dormant docket rule is proposed to expire five years from the date it becomes effective.
The local court is swamped with foreclosure notices from private banks and financial institutions, including the government’s only credit and loan firm, the Commonwealth Development Authority.
The government-owned Northern Marianas Housing Corp. reported to the Legislature that more than half of its clients with home loans are delinquent.
NMHC officials said they need at least $10 million to buy out the bad loans.
