BILL NUMBER: SB 931	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Ducheny

                        FEBRUARY 2, 2010

   An act to add Section 580e to the Code of Civil Procedure,
relating to mortgages.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 931, as introduced, Ducheny. Mortgages: deficiency judgments.
   Existing law authorizes an action for a deficiency judgment for
the balance due upon an obligation for the payment of which a deed of
trust or mortgage with power of sale upon real property or any
interest therein was given as security, as specified. Existing law
prohibits a deficiency judgment in any case in which the real
property or an estate for years therein has been sold by the
mortgagee or trustee under power of sale contained in the mortgage or
deed of trust.
   This bill would prohibit a deficiency judgment under a note
secured by a first deed of trust or first mortgage in any case in
which the trustor or mortgagor sells the dwelling for less than the
remaining amount of the indebtedness due at the time of sale with the
written consent of the holder of the first deed of trust or first
mortgage. The bill would provide, with the written consent of the
holder of the first deed of trust or first mortgage to that sale, the
holder of the first deed of trust or first mortgage shall be deemed
to accept the sale proceeds as full payment, and the remaining amount
of the indebtedness on the first deed of trust or first mortgage
shall be fully discharged.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 580e is added to the Code of Civil Procedure,
to read:
   580e.  No judgment shall be rendered for any deficiency under a
note secured by a first deed of trust or first mortgage in any case
in which the trustor or mortgagor sells the dwelling for less than
the remaining amount of the indebtedness due at the time of sale with
the written consent of the holder of the first deed of trust or
first mortgage. With the written consent of the holder of the first
deed of trust or first mortgage to that sale, the holder of the first
deed of trust or first mortgage shall be deemed to accept the sale
proceeds as full payment, and the remaining amount of the
indebtedness on the first deed of trust or first mortgage shall be
fully discharged.