Plain English Breakdown
The official text states provisions apply only to 'eligible property, as defined,' but does not provide the specific definition of eligible property within this summary.
Changes to Rules for Bidding on Foreclosed Homes
This law removes certain groups from the list of people allowed to make special bids after a home foreclosure sale and adds new rules, including an extra fee requirement, for those who can still bid.
What This Bill Does
- Removes prospective owner-occupants and eligible nonprofit corporations from the definition of an 'eligible bidder.'
- Limits these bidding rules only to trustee's sales of property that meets a specific definition called 'eligible property.'
- Requires any remaining eligible bidders to add 1.2% of the highest sale price at the auction to their bid amount.
- Allows the person who made the winning bid at the original sale to take legal action against an eligible bidder if rules are broken.
Who It Names or Affects
- People or groups trying to make special bids after a foreclosure auction on homes with one to four units that meet the 'eligible property' definition.
- The highest bidders at trustee's sales who may now sue others for breaking the new bidding rules.
Terms To Know
- Trustee's sale
- A public auction where a home is sold to pay off a debt when the owner stops making mortgage payments, specifically involving properties with one to four residential units under existing law.
- Eligible bidder
- A person or group allowed by law to submit a special offer after the main foreclosure sale ends; this bill removes prospective owner-occupants and eligible nonprofit corporations from this list.
Limits and Unknowns
- The text does not define exactly what types of homes count as 'eligible property' under this new rule.
- The source material does not explain the exact steps a winning bidder must take to sue an eligible bidder, only that they are authorized to do so.