Bill > AB1158

This bill modifies California laws related to mortgage foreclosures and property sales, primarily focusing on changes to the rules governing trustee's sales and eligible bidders. The bill removes prospective owner-occupants and eligible nonprofit corporations from the definition of "eligible bidders" in foreclosure sales, and requires eligible bidders to include an additional 1.2% fee with their bid. The legislation narrows the definition of "eligible property" and "eligible tenant buyers" for foreclosure sales, and allows the last and highest bidder at a trustee's sale to bring an action against an eligible bidder if their bid does not meet the legal requirements. The bill also provides the Attorney General, county counsel, city attorney, or district attorney with the ability to bring actions to enforce these provisions. Additionally, the bill makes technical amendments to related sections of the Health and Safety Code concerning housing definitions and a foreclosure intervention housing preservation program. These changes are set to remain in effect until January 1, 2031, providing a time-limited approach to modifying foreclosure sale procedures.

Budget and Finance, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1158