AB 828 (Ting) Temporary moratorium on foreclosures and unlawful detainer actions: coronavirus (COVID-19).

Would prohibit a person from taking any action to foreclose on a residential real property or proceeding with an unlawful detainer action while a state or locally declared state of emergency related to the COVID-19 virus is in effect and until 15 days after the state of emergency has ended.

Current Status: Dead

FindHOALaw Quick Summary:

Existing law confers a power of sale upon a mortgagee, trustee, or any other person to be exercised after a breach of the obligation for which the mortgage or transfer is a security. Existing law requires a trustee, mortgagee, or beneficiary to first file a notice of default, and establishes other requirements and procedures for completion of a foreclosure sale.

This bill would prohibit a person from taking any action to foreclose on a residential real property while a state or locally declared state of emergency related to the COVID-19 virus is in effect and until 15 days after the state of emergency has ended, including, but not limited to, causing or conducting the sale of the real property or causing recordation of a notice of default.

This bill would prohibit a county recorder from recording any instrument, paper, or notice that constitutes a notice of default, a notice of sale, or a trustee’s deed upon sale during the above-specified declared state of emergency relating to the COVID-19 virus. The bill would also prohibit a court from accepting a complaint in an action to foreclose.

Existing law establishes a procedure, known as an unlawful detainer action, that a landlord must follow in order to evict a tenant. Existing law provides that a tenant is subject to such an action if the tenant continues to possess the property without permission of the landlord in specified circumstances, including when the tenant has violated the lease by defaulting on rent or failing to perform a duty under the lease.

This bill would prohibit a state court, county sheriff, or party to a residential unlawful detainer case from accepting for filing, or taking any further action including executing a writ of possession or otherwise proceeding with an unlawful detainer action during the timeframe in which a state of emergency related to the COVID-19 virus is in effect and 15 days thereafter, except as specified.

The bill would make these provisions effective in a jurisdiction in which a state or locally declared state of emergency is in effect until 15 days after the state of emergency ends and would repeal these provisions on January 1, 2022.

This bill would declare that it is to take effect immediately as an urgency statute.

**AB 828 was amended on July 28, 2020 to extend the moratorium from 15 days to 91 days after the state of emergency has ended, would stay any current foreclosure actions, and would extend the right of redemption period until 90 days after the state of emergency has ended.

(c) This section shall be operative only while there is a state or locally declared state of emergency related to the COVID-19 virus in the jurisdiction in which the residential real property is located, located and for 90 days thereafter, and shall become inoperative 15 91 days after the state or locally declared state of emergency ends.

(d) Any action taken in violation of this section is void.

730.7 (a) Notwithstanding the provisions of this chapter or any other law, no court shall accept for filing a complaint in an action to foreclose any residential real property in a jurisdiction subject to a state or locally declared state of emergency on account of the COVID-19 virus until 15 days after the state or locally declared state of emergency ends. any other law, any action for foreclosure on a mortgage or deed of trust of residential real property brought under this chapter is stayed and the court may take no action and issue no decisions or judgments unless the court finds that the action is required to further the public health and safety.

(b) The period for electing or exercising any rights under this chapter, including exercising any right of redemption from a foreclosure sale or petitioning the court in relation to such a right, is extended until 90 days after the state or local declared state emergency related to the COVID-19 virus in the jurisdiction where the residential real property is located ends.