AB 1158: Mortgages.

Existing law provides that a trustees sale of property under a power of sale contained in a deed of trust or mortgage on real property containing one to 4 residential units is not final until the earliest of various time periods. Existing law provides specified eligible bidders, defined to include prospective owner-occupants and eligible nonprofit corporations with certain attributes, various rights in connection with those sales, and sets forth procedures for eligible bidders to submit bids after those sales. Existing law authorizes the Attorney General, a county counsel, a city attorney, or a district attorney to bring an action to enforce these provisions as specified.

This bill would remove prospective owner-occupants and eligible nonprofit corporations from the definition of eligible bidder. The bill would apply the provisions described above only to trustees sales of eligible property, as defined. The bill would require eligible bidders who submit bids pursuant to the procedures described above to include in the bid an amount equal to 1.2% of the last and highest bid at the trustees sale. The bill would authorize the last and highest bidder at a trustees sale to bring an action against an eligible bidder, as specified. The bill would make conforming changes.