Signed by Governor Arnold Schwarzenegger

Vote Smart's Synopsis:

Vote to pass a bill that changes regulations related to residential property foreclosures.

Highlights:

-Prohibits a mortgagee, trustee, beneficiary, or authorized agent from filing a notice of default until 30 days after he or she has contacted the borrower in person or by telephone to assess the borrower's financial situation and explore the options for the borrower to avoid foreclosure or until 30 days after he or she has shown "due diligence" attempting to contact the borrower (Sec. 2) -Requires that a tenant or subtenant whose rental housing is sold under foreclosure must be given 60 days' written notice before he or she may be removed from the property (Sec. 6). -Mandates that an owner of vacant residential property who acquired the property at a foreclosure sale or through foreclosure under a mortgage or deed of trust must maintain the property and shall be subject to a fine of up to $1,000 per day if he or she is found to be in violation of this requirement (Sec. 5)

Full Bill Text

Highlights:

-Authorizes the penalization of property owners who fail to properly maintain vacant property obtained at foreclosure sales or through foreclosure under a mortgage (Sec. 5). -Allows tenants of rental units 60 days to vacate the property from the time that it is sold in foreclosure (Sec. 6). -Requires that the mortgagee, beneficiary, or authorized agent contact the borrower in person or by phone to discuss the borrowers financial situation and explore options to avoid foreclosure (Sec. 2). -Requires a mortgagee, trustee, or beneficiary to wait 30 days after making contact with the borrower before filing a notice of default (Sec. 2).

Full Bill Text