Foreclosure Laws: California has specific laws and procedures governing the foreclosure process, including notice requirements and opportunities for homeowners to explore alternatives, such as loan modifications.

The California legislature passed Assembly Bill (AB) 1837 and AB 2170, effective as of January 1, 2023. These two laws, which build on the groundwork laid by Senate Bill (SB) 1079 which was passed in 2020, are geared towards individual homeownership. SB 1079 mandates that foreclosed homes are sold to individuals instead of being sold to investors. The idea is to enhance affordable housing and community stability by curbing the bulk acquisition of properties by investors. This legislation, codified in California Civil Code section 2923, extends the safeguards of SB 1079 until January 1, 2031.

AB 2170 marks a significant shift in the foreclosure process for Institutions and investors, requiring them to prioritize “Eligible Bidders” during the initial 30-day period after listing a real estate owned (REO) property for sale. An “Eligible Bidder” encompasses prospective owner-occupants, nonprofit corporations, California community land trusts, limited-equity housing cooperatives, and public entities. These bills are designed to level the playing field against corporate investors and emphasize transparency, as Eligible Bidders must submit an affidavit confirming their eligibility under penalty of perjury.

No comments yet.

Leave a Reply

More Information & Classes - www.DuaneGomer.com