SB-1323 Foreclosure: equity sale: multiple listing.

Would expand the definition of an accessory dwelling unit to include a tiny home on wheels.

Current Status: Dead

FindHOALaw Quick Summary:

Existing law imposes various requirements to be satisfied before exercising a power of sale under a mortgage or deed of trust, including recording a notice of default, providing a mortgagor or trustor a copy of the recorded notice of default, providing notice of the time and place scheduled for the public auction sale of the real property and other notices related to the sale, determining the fees and expenses that may be paid from the sale, determining who may conduct the sale and act in the sale as an auctioneer for the trustee, determining the time and place where the auction sale may occur, and specifying how bids may be made and accepted at the auction sale.
This bill would amend to require that an equity sale of property under a power of sale of a mortgage or deed of trust be made by a real estate licensee and by publicly listing the property for sale on a multiple listing service with an initial listing price at the property’s appraised value. If the trustee receives multiple qualifying offers the bill would require the trustee to make counter offers to each offeror and comply with prescribed procedures.
The bill would require the trustee to reduce the listed price of the property if the trustee does not receive a qualifying offer within 30 days of listing the property, and every 30 days thereafter.
This bill would authorize the trustee to sell the property by public auction if the trustee does not receive a qualifying offer within 30 days of the 4th price decrease, or if a price decrease will result in the property’s listed price falling below the equity threshold.
The bill would also make conforming changes to the various requirements to be satisfied before exercising a power of sale under a mortgage or deed of trust, and would impose liability for damages resulting from specified violations of these provisions.
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View more info on SB 1323
from the California Legislature's website

Related Topics

Related Statutes

Related Case Law

  • Highland Greens Homeowners Ass’n v. De Guillen (In re De Guillen)
    (2019) 604 B.R. 826

    [Assessment Liens; Continuing Lien; Foreclosure] The BAP held that the Davis-Stirling Act does not allow for continuing assessment liens and imposes an affirmative duty on Associations to provide additional pre-lien notices to delinquent homeowners before recording any subsequent assessment lien.

  • Mashiri v. Epsten Grinnell & Howell
    (2017) 845 F.3d 984

    [FDCPA; Collection Notice] Homeowner successfully alleged that HOA law firm violated FDCPA because pre-lien notice payment demand timeline was inconsistent with the right under the FDCPA to dispute the debt within 30 days of receipt of letter.

  • Diamond Heights Village Association, Inc. v. Financial Freedom Senior Funding Corp.
    (2011) 196 Cal.App.4th 290

    [Assessment Collection; Judgment Lien Merger] When a HOA assessment lien is enforced by the HOA through judicial action, the debt secured by the assessment lien is merged into the judgment.

  • Barry v. OC Residential Properties
    (2011) 194 Cal.App.4th 861

    [Foreclosure; Redemption Price] When a property is sold through nonjudicial foreclosure of an assessment lien, the redemption price may include maintenance and repair expenses incurred by the purchaser during the redemption period that were reasonable necessary for the preservation of the property.

  • Multani v. Witkin & Neal
    (2013) 215 Cal.App.4th 1428

    [Assessment Collection; Redemption Rights] A nonjudicial foreclosure sale may be set aside where a HOA fails to notify the foreclosed owner of his/her redemption rights after the foreclosure sale.

Related Links

California Legislature Further Limits a HOA’s Right to Restrict Rentals - Published on HOA Lawyer Blog (September 2020) SB 9 Signed! Statewide Re-zoning of Single-Family Neighborhoods & Urban Parcel Splits - Published on HOA Lawyer Blog (September 2021)