New Law Changes California Mortgage Foreclosure Rules
As expected, California Governor Arnold Schwarzenegger last week signed California's new mortgage foreclosure bill into law, which is effective immediately and would expire in January 2013. (See SB1137). The new law adds Civil Code §§2923.5, 2923.6 and 2929.3 and Code of Civil Procedure §1161b.
Among other significant changes, the new law amends the Civil Code procedures that must be followed before a lender can issue a notice of default or notice of trustee sale in connection with residential mortgage loans made from January 1, 2003 to December 31, 2007 for owner-occupied residences. The new law also imposes civil penalties up to $1,000 per day for lenders who fail to maintain foreclosed properties and gives tenants 60 days to vacate property sold in foreclosure.
Among other significant changes, the new law amends the Civil Code procedures that must be followed before a lender can issue a notice of default or notice of trustee sale in connection with residential mortgage loans made from January 1, 2003 to December 31, 2007 for owner-occupied residences. The new law also imposes civil penalties up to $1,000 per day for lenders who fail to maintain foreclosed properties and gives tenants 60 days to vacate property sold in foreclosure.
New Mortgage Foreclosure Rules Expected to Become Law
California Governor Arnold Schwarzenegger said through a spokesman that he intends to sign into law, possibly as early as today, the first of what are likely to be many upcoming changes to California's mortgage foreclosure rules. The new law would amend procedures that must be followed before a lender can issue a notice of default or notice of trustee sale, would require special notice to tenants of a property on which foreclosure proceedings have begun, and would impose penalties on property owners who fail to adequately maintain foreclosed properties, among other changes.
The final version of the California Senate Bill SB 1137 passed the Senate on July 2 after passing the California assembly in late June.
The final version of the California Senate Bill SB 1137 passed the Senate on July 2 after passing the California assembly in late June.
