Mortgages: foreclosure.

Plain English Breakdown

The specific details about which nonprofit corporations will be eligible under new rules and how legal authorities will enforce these changes remain unclear from the provided information.

Mortgages: Foreclosure Changes

This law modifies the eligibility criteria for bidders in trustee's sales and introduces a fee requirement for certain bids.

What This Bill Does

• Removes prospective owner-occupants from the list of eligible bidders who can buy foreclosed homes at trustee’s sales.
• Changes the definition of 'eligible bidder' to include only specific nonprofit corporations with additional attributes.
• Requires some bidders to add a fee equal to 1.2% of the highest bid during foreclosure sales.
• Authorizes legal authorities like the Attorney General, county counsel, city attorney, or district attorney to enforce these rules and seek penalties for violations.

Who It Names or Affects

• People who want to buy foreclosed homes as their main residence.
• Nonprofit corporations that previously could bid on foreclosed properties.
• Legal authorities like the Attorney General, county counsel, city attorney, or district attorney.

Terms To Know

Eligible bidder

A person or organization allowed to participate in bidding for foreclosed homes under specific rules.

Trustee’s sale

The process of selling a property when the owner cannot pay back a loan, usually through an auction.

Limits and Unknowns

• Does not specify which nonprofit corporations are eligible under the new rules.
• Does not provide details on how legal authorities will enforce these changes or what penalties might be sought.
• The effective date is not provided in the bill summary.

Official Summary Text

AB 1957, as amended, Pacheco.
Mortgages: foreclosure.
Existing law provides that a trustee’s sale of property under a power of sale contained in a deed of trust or mortgage on real property containing one to 4 residential units is not final until the earliest of various time periods. Existing law provides specified eligible bidders, defined to include prospective owner-occupants and eligible nonprofit corporations with certain attributes, various rights in connection with those sales, and sets forth procedures for eligible bidders to submit bids after those sales. Existing law authorizes the Attorney General, a county counsel, a city attorney, or a district attorney to bring an action to enforce these provisions as specified.
This bill would remove prospective owner-occupants
and eligible nonprofit corporations
from the definition of “eligible bidder.”
The bill would add an additional attribute to the eligible nonprofit corporations portion of “eligible bidder.”
The bill would apply the provisions described above only to trustee’s sales of eligible property, as defined. The bill would require
certain
eligible bidders who submit bids pursuant to the procedures described above to include in the bid an amount equal to 1.2% of the last and highest bid at the trustee’s sale.
The bill would authorize the persons described above to seek a civil penalty to enforce these provisions, as specified.
The bill would make conforming changes.

Current Bill Text

Download Bill PDF