BILL NUMBER: AB 1745	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 11, 2012
	AMENDED IN ASSEMBLY  MAY 3, 2012
	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Torres

                        FEBRUARY 17, 2012

   An act to amend Section 2924f of the Civil Code, relating to
mortgages.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1745, as amended, Torres. Mortgages: notices of sale.
   Existing law  ,  requires a lender to file a
notice of default in the case of nonjudicial foreclosure prior to
enforcing a power of sale as a result of a default on an obligation
secured by real property, as specified. Existing law also requires
that a notice of sale be given before the power of sale may be
exercised. Existing law requires the notice of sale to contain
specified information regarding the property and the sale, and to be
recorded with the county recorder, as specified. As of April 1, 2012,
existing law also requires that the notice of sale contain language
notifying potential bidders of specified risks involved in bidding on
property at a trustee's sale, and a notice to the property owner
informing the owner about how to obtain information regarding any
postponement of the sale.
   This bill would prohibit a mortgagee, trustee, beneficiary, or
authorized agent from recording a notice of sale pursuant to the
above provisions after providing written approval of a short sale, as
defined. The bill would also authorize a mortgagee, 
trustee,  beneficiary, or authorized agent to withdraw an
approval of a short sale if  the terms of the short sale
agreement have changed   the mortgagor or trustor fails
to comply with a condition of the written short sale agreement 
. The bill would also require a written notice to be provided to a
 short sale seller   mortgagor or trustor 
not less than 3 days  prior to   following 
the  written  withdrawal of approval that includes 
an explanation of the change of condition that caused  
the reason or reasons for  the withdrawal.  The bill would
also provide that the prohibition against recording a notice of sale
would not apply after written withdrawal of a short sale approval is
provided to a mortgagor or trustor, unless subsequent approval of a
short sale is provided.
   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 2924f of the Civil Code, as amended by Section
2 of Chapter 229 of the Statutes of 2011, is amended to read:
   2924f.  (a) As used in this section and Sections 2924g and 2924h,
"property" means real property or a leasehold estate therein, and
"calendar week" means Monday through Saturday, inclusive.
   (b) (1) Except as provided in subdivision (c), before any sale of
property can be made under the power of sale contained in any deed of
trust or mortgage, or any resale resulting from a rescission for a
failure of consideration pursuant to subdivision (c) of Section
2924h, notice of the sale thereof shall be given by posting a written
notice of the time of sale and of the street address and the
specific place at the street address where the sale will be held, and
describing the property to be sold, at least 20 days before the date
of sale in one public place in the city where the property is to be
sold, if the property is to be sold in a city, or, if not, then in
one public place in the judicial district in which the property is to
be sold, and publishing a copy once a week for three consecutive
calendar weeks, the first publication to be at least 20 days before
the date of sale, in a newspaper of general circulation published in
the city in which the property or some part thereof is situated, if
any part thereof is situated in a city, if not, then in a newspaper
of general circulation published in the judicial district in which
the property or some part thereof is situated, or in case no
newspaper of general circulation is published in the city or judicial
district, as the case may be, in a newspaper of general circulation
published in the county in which the property or some part thereof is
situated, or in case no newspaper of general circulation is
published in the city or judicial district or county, as the case may
be, in a newspaper of general circulation published in the county in
this state that (A) is contiguous to the county in which the
property or some part thereof is situated and (B) has, by comparison
with all similarly contiguous counties, the highest population based
upon total county population as determined by the most recent federal
decennial census published by the Bureau of the Census. A copy of
the notice of sale shall also be posted in a conspicuous place on the
property to be sold at least 20 days before the date of sale, where
possible and where not restricted for any reason. If the property is
a single-family residence the posting shall be on a door of the
residence, but, if not possible or restricted, then the notice shall
be posted in a conspicuous place on the property; however, if access
is denied because a common entrance to the property is restricted by
a guard gate or similar impediment, the property may be posted at
that guard gate or similar impediment to any development community.
Additionally, the notice of sale shall conform to the minimum
requirements of Section 6043 of the Government Code and be recorded
with the county recorder of the county in which the property or some
part thereof is situated at least 20 days prior to the date of sale.
The notice of sale shall contain the name, street address in this
state, which may reflect an agent of the trustee, a toll-free
telephone number or telephone number in this state of the trustee,
the name of the original trustor, and the statement required by
paragraph (3) of subdivision (c). In addition to any other
description of the property, the notice shall describe the property
by giving its street address, if any, or other common designation, if
any, and a county assessor's parcel number; but if the property has
no street address or other common designation, the notice shall
contain a legal description of the property, the name and address of
the beneficiary at whose request the sale is to be conducted, and a
statement that directions may be obtained pursuant to a written
request submitted to the beneficiary within 10 days from the first
publication of the notice. Directions shall be deemed reasonably
sufficient to locate the property if information as to the location
of the property is given by reference to the direction and
approximate distance from the nearest crossroads, frontage road, or
access road. If a legal description or a county assessor's parcel
number and either a street address or another common designation of
the property is given, the validity of the notice and the validity of
the sale shall not be affected by the fact that the street address,
other common designation, name and address of the beneficiary, or the
directions obtained therefrom are erroneous or that the street
address, other common designation, name and address of the
beneficiary, or directions obtained therefrom are omitted. The term
"newspaper of general circulation," as used in this section, has the
same meaning as defined in Article 1 (commencing with Section 6000)
of Chapter 1 of Division 7 of Title 1 of the Government Code.
   The notice of sale shall contain a statement of the total amount
of the unpaid balance of the obligation secured by the property to be
sold and reasonably estimated costs, expenses, advances at the time
of the initial publication of the notice of sale, and, if republished
pursuant to a cancellation of a cash equivalent pursuant to
subdivision (d) of Section 2924h, a reference of that fact; provided,
that the trustee shall incur no liability for any good faith error
in stating the proper amount, including any amount provided in good
faith by or on behalf of the beneficiary. An inaccurate statement of
this amount shall not affect the validity of any sale to a bona fide
purchaser for value, nor shall the failure to post the notice of sale
on a door as provided by this subdivision affect the validity of any
sale to a bona fide purchaser for value.
   (2) (A) On and after April 1, 2012, if the deed of trust or
mortgage containing a power of sale is secured by real property
containing from one to four single-family residences, the notice of
sale shall contain substantially the following language, in addition
to the language required pursuant to paragraph (1):

    "NOTICE   NOTICE    TO
POTENTIAL BIDDERS: If you are considering bidding on this property
lien, you should understand that there are risks involved in bidding
at a trustee auction. You will be bidding on a lien, not on the
property itself. Placing the highest bid at a trustee auction does
not automatically entitle you to free and clear ownership of the
property. You should also be aware that the lien being auctioned off
may be a junior lien. If you are the highest bidder at the auction,
you are or may be responsible for paying off all liens senior to the
lien being auctioned off, before you can receive clear title to the
property. You are encouraged to investigate the existence, priority,
and size of outstanding liens that may exist on this property by
contacting the county recorder's office or a title insurance company,
either of which may charge you a fee for this information. If you
consult either of these resources, you should be aware that the same
lender may hold more than one mortgage or deed of trust on the
property.

   NOTICE TO PROPERTY OWNER: The sale date shown on this notice of
sale may be postponed one or more times by the mortgagee,
beneficiary, trustee, or a court, pursuant to Section 2924g of the
California Civil Code. The law requires that information about
trustee sale postponements be made available to you and to the
public, as a courtesy to those not present at the sale. If you wish
to learn whether your sale date has been postponed, and, if
applicable, the rescheduled time and date for the sale of this
property, you may call telephone number for information regarding the
trustee's sale] or visit this Internet Web site Internet Web site
address for information regarding the sale of this property], using
the file number assigned to this case case file number]. Information
about postponements that are very short in duration or that occur
close in time to the scheduled sale may not immediately be reflected
in the telephone information or on the Internet Web site. The best
way to verify postponement information is to attend the scheduled
 sale."   sale. 

   (B) A mortgagee, beneficiary, trustee, or authorized agent shall
make a good faith effort to provide up-to-date information regarding
sale dates and postponements to persons who wish this information.
This information shall be made available free of charge. It may be
made available via an Internet Web site, a telephone recording that
is accessible 24 hours a day, seven days a week, or through any other
means that allows 24 hours a day, seven days a week, no-cost access
to updated information. A disruption of any of these methods of
providing sale date and postponement information to allow for
reasonable maintenance or due to a service outage shall not be deemed
to be a violation of the good faith standard.
   (C) Except as provided in subparagraph (B), nothing in the wording
of the notices required by subparagraph (A) is intended to modify or
create any substantive rights or obligations for any person
providing, or specified in, either of the required notices. Failure
to comply with subparagraph (A) or (B) shall not invalidate any sale
that would otherwise be valid under Section 2924f.
   (D) Information provided pursuant to subparagraph (A) does not
constitute the public declaration required by subdivision (d) of
Section 2924g.
   (3) If the sale of the property is to be a unified sale as
provided in subparagraph (B) of paragraph (1) of subdivision (a) of
Section 9604 of the Commercial Code, the notice of sale shall also
contain a description of the personal property or fixtures to be
sold. In the case where it is contemplated that all of the personal
property or fixtures are to be sold, the description in the notice of
the personal property or fixtures shall be sufficient if it is the
same as the description of the personal property or fixtures
contained in the agreement creating the security interest in or
encumbrance on the personal property or fixtures or the filed
financing statement relating to the personal property or fixtures. In
all other cases, the description in the notice shall be sufficient
if it would be a sufficient description of the personal property or
fixtures under Section 9108 of the Commercial Code. Inclusion of a
reference to or a description of personal property or fixtures in a
notice of sale hereunder shall not constitute an election by the
secured party to conduct a unified sale pursuant to subparagraph (B)
of paragraph (1) of subdivision (a) of Section 9604 of the Commercial
Code, shall not obligate the secured party to conduct a unified sale
pursuant to subparagraph (B) of paragraph (1) of subdivision (a) of
Section 9604 of the Commercial Code, and in no way shall render
defective or noncomplying either that notice or a sale pursuant to
that notice by reason of the fact that the sale includes none or less
than all of the personal property or fixtures referred to or
described in the notice. This paragraph shall not otherwise affect
the obligations or duties of a secured party under the Commercial
Code.
   (c) (1) This subdivision applies only to deeds of trust or
mortgages which contain a power of sale and which are secured by real
property containing a single-family, owner-occupied residence, where
the obligation secured by the deed of trust or mortgage is contained
in a contract for goods or services subject to the provisions of the
Unruh Act (Chapter 1 (commencing with Section 1801) of Title 2 of
Part 4 of Division 3).
   (2) Except as otherwise expressly set forth in this subdivision,
all other provisions of law relating to the exercise of a power of
sale shall govern the exercise of a power of sale contained in a deed
of trust or mortgage described in paragraph (1).
   (3) If any default of the obligation secured by a deed of trust or
mortgage described in paragraph (1) has not been cured within 30
days after the recordation of the notice of default, the trustee or
mortgagee shall mail to the trustor or mortgagor, at his or her last
known address, a copy of the following statement:
 ""  YOU ARE IN DEFAULT UNDER A
 
_______________________________________________,
            (Deed of trust or mortgage)
DATED ____. UNLESS YOU TAKE ACTION TO PROTECT
YOUR PROPERTY, IT MAY BE SOLD AT A PUBLIC SALE.
IF
YOU NEED AN EXPLANATION OF THE NATURE OF THE
PROCEEDING       AGAINST YOU, YOU SHOULD
CONTACT A LAWYER.  '' 
 


   (4) All sales of real property pursuant to a power of sale
contained in any deed of trust or mortgage described in paragraph (1)
shall be held in the county where the residence is located and shall
be made to the person making the highest offer. The trustee may
receive offers during the 10-day period immediately prior to the date
of sale and if any offer is accepted in writing by both the trustor
or mortgagor and the beneficiary or mortgagee prior to the time set
for sale, the sale shall be postponed to a date certain and prior to
which the property may be conveyed by the trustor to the person
making the offer according to its terms. The offer is revocable until
accepted. The performance of the offer, following acceptance,
according to its terms, by a conveyance of the property to the
offeror, shall operate to terminate any further proceeding under the
notice of sale and it shall be deemed revoked.
   (5) In addition to the trustee fee pursuant to Section 2924c, the
trustee or mortgagee pursuant to a deed of trust or mortgage subject
to this subdivision shall be entitled to charge an additional fee of
fifty dollars ($50).
   (6) This subdivision applies only to property on which notices of
default were filed on or after the effective date of this
subdivision.
   (d) A mortgagee, trustee, beneficiary, or authorized agent may not
record a notice of sale pursuant to this section after providing
written approval of a short sale  to a mortgagor or trustor 
.
   (1) For purposes of this subdivision, "short sale" means a
transfer  of real property  in which the trustor or
mortgagor sells  a   the real  property for
a price less than the remaining amount of the indebtedness secured
by the property at the time of sale.
   (2) Approval of a short sale may be withdrawn by the mortgagee,
 trustee,  beneficiary, or authorized agent at any
time  if the terms of the short sale agreement have changed.
Not less than three days prior to the withdrawal of approval, written
notice shall be provided to the short sale seller and shall
 after the mortgagor or trustor fails to comply with a condition
of the written short sale agreement. Withdrawal of approval shall be
made in writing to the mortgagor or trustor, shall  include an
explanation of the  change of condition that caused 
 reason or reasons for  the withdrawal  , and shall
state the date on which the withdrawal of approval is effective,
which date shall be no less than   three days following the
date on   which the written withdrawal of approval is
provided to the mortgagor or trustor  . 
   (3) The prohibition in this subdivision against recording a notice
of sale shall not apply after written withdrawal of a short sale
approval is provided to a mortgagor or trustor, as provided in
paragraph (2), unless subsequent approval of a short sale is
provided.  
   (e) This section shall become operative on January 1, 2013.