Note: The following is a general discussion on the specified topic or issue and may not be relied on as legal advice in any specific case or matter you encounter. You should review any applicable case, or matter with counsel experienced in this area of law and should not generally rely on the discussion in this Alert.
Date: October , 2020
To: All Scheer Law Group Clients and Affiliates:
Subject: Where Politics, Social Reform and Law Meet: Radical Changes to Foreclosure Law in CA: SB 1079 Now in Effect.
Many new laws addressing real and perceived financial emergencies were recently “pumped out” by the California legislation. Some of the laws reflect the changing socio-political landscape in CA, and possibly the nation.
Recently enacted SB 1079 radically changes the laws governing foreclosure sales in CA. In essence, “eligible bidders” are given a right to match or overbid the price bid at a completed foreclosure sale for up to 45 days. Eligible bidders now include the tenants on the property that was foreclosed, purchasers who will agree to owner occupy the property, and a vast array of non-profit and local state and agencies who will ostensibly put the foreclosed property to good use.
Whether the impact is beneficial or not remains to be seen. One thing is certain: The impact on the finality of foreclosure sales in CA will be substantial. In addition, the impact will spread out to affect guarantor liability, and will dramatically increase the potential entanglement of state and local government with the foreclosure process and finality of sales. Another lesser ramification is a very punitive allocation of obligations to maintain the exterior of foreclosed residential properties or to pay escalating fines of up to $5,000 per day!
Fines Increased for Failure of Owner to Maintain Residential Property (Civ. Code §2929.3) :
Please call or email if you have any questions or want to discuss.
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