BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1221|
|Office of Senate Floor Analyses | |
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CONSENT
Bill No: SB 1221
Author: Calderon (D)
Amended: 4/6/10
Vote: 21
SENATE JUDICIARY COMMITTEE : 5-0, 3/23/10
AYES: Corbett, Harman, Hancock, Leno, Walters
SUBJECT : Mortgages: notice of sale
SOURCE : United Trustees Association
DIGEST : This bill permits a mortgagee, trustee, or other
person authorized to take sale to file a notice of sale up
to five days before the lapse of the three-month period
provided that the date of sale is no earlier than three
months and 20 days after the filing of the notice of
default.
ANALYSIS : Existing law regulates the non-judicial
foreclosure of properties pursuant to the power of sale
contained within a mortgage contract. To commence the
process, existing law authorizes the trustee, mortgagee, or
beneficiary to record a notice of default and requires
three months to lapse before noticing the sale of the
property. (Sections 2924, and 2924f of the Civil Code)
Existing law requires the notice of sale to be posted,
published, and filed with the county recorder at least 20
days before the sale of the property. (Section 2924f of
CONTINUED
SB 1221
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the Civil Code)
This bill provides that the mortgagee, trustee, or other
person authorized to take sale may file a notice of sale up
to five days before the lapse of the three-month period,
provided that the date of sale is no earlier than three
months and 20 days after the filing of the notice of
default.
This bill makes a corresponding change to the codified
notice that must be included in the notice of default.
Background
Foreclosures in California are generally non-judicial,
meaning that they are accomplished without court
involvement. The first step in the foreclosure process is
the filing of a notice of default, which generally occurs
after three or more months of delinquency. The foreclosing
entity must then wait at least three months before noticing
the sale of the property, which must be posted, published,
and filed with the county recorder before the date of sale.
Prior to January 1, 2010, then-existing law required the
notice of sale to be published and posted at least 20 days
before the sale of the property. Those provisions also
required the notice to be filed with the county recorder at
least 14 days before sale. To conform those timing
requirements and provide greater advance notice, SB 306
(Calderon, Chapter 43, Statutes of 2009), effective January
1, 2010, instead required the notice of sale to be filed 20
days before sale. That change conformed the posting,
publishing, and filing requirements to the same 20-day
period.
Prior legislation . SB 306 (Calderon), Chapter 43, Statutes
of 2009, which passed the Senate with a vote of 36-0
(consent) on July 16, 2009, conformed the time period in
which a notice of sale must be posted, published, and
filed.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
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3
SUPPORT : (Verified 4/7/10)
United Trustees Association (source)
ARGUMENTS IN SUPPORT : According to the author:
"Prior to enactment of SB 306, notices of sale were
required to be published in newspapers of general
circulation at least 20 days prior to the sale of the
property, and recorded with the county recorder at least
14 days prior to the sale. SB 306 conformed these dates,
so that notices of sale must now be published and
recorded at least 20 days prior to sale.
"The change was intended to give the public and those
relying on the recording process as much advance notice
of sales as possible.
The problem with the law, as amended by SB 306, is that,
while publication dates can be coordinated very precisely
between trustees and newspapers, the recording process is
subject to greater opportunity for error. If recorders
close early on a given day due to budget cutbacks, or if
the notice of sale document is delivered to the
recorder's office, but not actually recorded until the
next day, a technical violation of the law can occur."
This bill is intended to correct that issue.
RJG:mw 4/7/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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