Eligible Foreclosure Bidders Redefined

Assembly Bill 1957 (Pacheco) proposes to amend existing law on the definition of eligible bidders at residential real property foreclosure sales and address what “eligible properties” are for certain preferential bidding procedures. The bill has passed the Assembly and is now pending in the Senate.

The sponsor of the bill, the United Trustees Associaiton, asserts that the current law on preferential bidding has been fraudulently manipulated to create a disincentive to bid at foreclosure sales and thus harmed homeowners in foreclosure.
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.