California passed a bill amending the state’s foreclosure laws. Under the bill, if 1-to 4- family residential property is purchased at a foreclosure sale by certain eligible bidders, the property must be subject to a recorded covenant that ensures the property is sold to lower income households at an affordable housing cost, or rented to lower income household at an affordable housing rent, for at least 30 years from the date the trustee’s deed is issued. The bill also requires the trustee or an authorized agent to send certain information to the Attorney General within 15 days after a foreclosure sale is deemed final. In addition, the bill amends trustee and attorney fees following a foreclosure sale, modifies the definition of “eligible bidder” and “eligible tenant buyer”, revises the affidavit or declaration that must be submitted with a bid at a foreclosure sale, and requires title to the property to remain with the borrower until the foreclosure sale is deemed final. The bill becomes effective January 1, 2023.
Click to view the CA Assembly Bill #1837: https://www.tenaco.com/wp-content/uploads/2022/10/CA-AB-1837-09-29-22.pdf
Click to view the CA Assembly Bill #1837 – Law as Amended: https://www.tenaco.com/wp-content/uploads/2022/10/CA-AB-1837-Law-as-Amended-09-29-22.pdf
