Foreclosures, What’s Changed?
In an effort to create more affordable housing, the California Legislature enacted Senate Bill 1079 which modifies procedures for the sale of residential property through nonjudicial foreclosure.
The goal is to assist eligible bidders in finding affordable housing and stem the flow of foreclosures snapped up by lenders and real estate investors.
Sales Are not Final: The balcony inspection bill, AB 326, is causing a stir. The board claims it makes the HOA responsible to repair balconies. I say it only requires an HOA to enforce repairs by the tenants if required and designated in the governing documents. If I’m wrong, I’m afraid assessments will go sky-high in our 506-unit complex. –Tim R.
Sales Are not Final. Effective January 1, 2021, eligible bidders will be able to bid on foreclosed residential properties after the foreclosure sale has taken place. This is a major change in foreclosure sale procedure. For the past almost 100 years, foreclosure sales have been final when the auctioneer states “sold” at a public auction (subject to the right of redemption).
Eligible Bidders Defined. An “eligible bidder” will be defined as (1) a qualifying tenant who is already occupying the foreclosed property, (2) a person who is willing to move into the property for at least one year, and (3) certain nonprofit housing agencies. These eligible bidders can take ownership of the foreclosed properties away from successful bidders at foreclosure sales.
Procedure. Eligible bidders will have 15 days after the sale to give notice to the foreclosure trustee of their intent to bid on the property, and 45 days from the sale date to tender payment.
After-sale tenant buyers only have to match the highest bid at the foreclosure sale, while owner-occupants and nonprofits will have to exceed the successful bid. Responsibility for administering post-sale procedures will fall to foreclosure trustees who handle the original sales.
Thank you to Richard Witkin for this article. Richard is the premier assessment collection attorney in California, with extensive knowledge of assessment lien and foreclosure matters.
RECOMMENDATION: Contact the ADAMS|STIRLING office for more details on foreclosures at email@example.com.
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