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Assembly Bill 1957 (Pacheco) proposes to amend existing law on eligible bidders at residential real property foreclosure sales and address what “eligible properties” are for certain bidding procedures. AB 1957 would remove prospective owner-occupants, and revises the definition of eligible nonprofit bidders, in the definition of an “eligible bidder” that has certain bidding rights in a foreclosure. An eligible tenant buyer defined in current law has a new requirement in the bill they must maintain occupancy for at least one year pursuant to a recorded deed restriction.
The provisions of existing law regarding bidding rights would only apply to trustee’s sales of eligible property. “Eligible property” is defined to mean a property that meets all of the following requirements: (A) The property is residential real property sold at a trustee’s sale pursuant to a power of sale contained in a first lien deed of trust or mortgage. (B) The city or county in which the property is located has issued a certificate of occupancy that was valid on the date of the trustee’s sale and the property was not subject to a red tag or a substandard building code violation preventing occupancy on the date of the sale. (C) The property contains four or fewer residential units. (D) The fair market value of the property determined pursuant to subdivision (f) of Section 2924f is equal to or less than the maximum Federal Housing Administration loan limits established under Section 1709(b) of Title 12 of the United States Code and published by the United States Department of Housing and Urban Development for the specific metropolitan statistical area in which the property is located on the date of the sale. The bill also specifies that a trustee does not have a duty to investigate or verify the information contained in a bidder’s affidavit or the bidder’s eligibility, and shall not be liable to any person or entity on any claim arising therefrom. Comments are closed.
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