BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 62|
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THIRD READING
Bill No: SB 62
Author: Liu (D)
Amended: As introduced
Vote: 21
SENATE JUDICIARY COMMITTEE : 3-1, 4/12/11
AYES: Evans, Corbett, Leno
NOES: Harman
NO VOTE RECORDED: Blakeslee
SUBJECT : Local government: Los Angeles County: notice
of recordation
SOURCE : County of Los Angeles
DIGEST : This bill allows the sponsor, Los Angeles
County, and the Los Angeles County Recorder to notify
affected parties, including occupants of the property, when
a notice of default or notice of sale has been recorded on
a property. This bill also allows for the Los Angeles
County Recorder to collect a fee of up to $7 in order to
cover the costs of notifying the parties and providing
information about housing assistance and counseling.
ANALYSIS : Existing law requires the Los Angeles County
Recorder (Recorder), upon the adoption of an authorizing
resolution by the board of supervisors, to mail a notice to
the party or parties executing a deed, quitclaim deed, or
deed of trust, within 30 days of recordation. (Government
Code ÝGOV] Section 27297.6)
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Existing law provides that failure to provide the above
notice shall not result in any liability against the
Recorder and the county, and requires the county recorder
to use a competitive bid process if it contracts for the
processing or mailing of the notice. (GOV Section 27297.6)
Existing law permits the Recorder to collect an additional
fee from the party filing a deed, quitclaim deed, or deed
of trust, to implement the above provision. That fee shall
not exceed the mailing cost of the above notice, but in no
case be greater than $7. (GOV Section 27387.1)
Existing law requires the trustee, or authorized agent,
that represents the foreclosing financial institution to
post and mail, a notice informing the residents of a
property about a pending foreclosure sale. That notice
informs residents that the property may be sold at a
foreclosure sale, the requirements of an eviction notice,
and that they may wish to contact a lawyer or a local legal
aid or housing counseling agency to discuss any rights they
may have. (Civil Code Section 2924.8)
This bill additionally requires the Recorder, upon adoption
of an authorizing resolution by the Los Angeles County
Board of Supervisors, to notify the party or parties
subject to a notice of default or notice of sale, including
the occupants of that property. The Recorder must notify
those individuals by mail within five days, but in any even
no more than 20 days, of the recording of those documents.
This bill authorizes the Recorder to collect an additional
fee from a party filing a notice of default or notice of
sale. That fee, not to exceed $7, shall not exceed the
mailing cost of the notice and the actual cost, if any, to
provide information, counseling, or assistance to a person
who receives the notice.
This bill requires the board of supervisors to submit a
report to the Senate Judiciary Committee and the Assembly
Local Government Committee that includes, but is not
limited to, a copy of the type of notices mailed, the
number of recorded notices of default and sale for which a
fee was collected, the amount of fees collected, and the
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amount of fees spent to provide housing information,
counseling, and assistance. That report must be submitted
on or before January 1, 2014.
This bill sunsets on January 1, 2015.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 4/13/11)
County of Los Angeles (source)
California District Attorneys Association
Consumer Federation of America
Consumer Federation of California
Consumers Union
Los Angeles County Sheriff
Western Center on Law and Poverty
ARGUMENTS IN SUPPORT : According to the author:
"The purpose of the bill is to give Los Angeles County
authority to notify and assist homeowners and occupants
of possible foreclosure and to charge a fee, not to
exceed $7 to provide the notification and consumer
assistance.
"Current law allows Los Angeles County to charge a fee,
not to exceed $7, to notify homeowners when a deed,
quitclaim deed, or deed of trust is recorded. Notices of
default and notices of sale are not covered by the
current law.
"Notices of default and notices of sale are public
documents. Criminals, acting as foreclosure consultants
and loan modification specialists, contact homeowners in
foreclosure. They promise homeowners they will stop the
foreclosure or obtain a loan modification. They charge
homeowners thousands of dollars but never stop the
foreclosure, obtain the promised loan modification, or
provide any other service of value.
"This bill would address this problem by allowing Los
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Angeles County to mail a written notification to
homeowners and occupants who are subject to a notice of
default or notice of sale. The notification would warn
homeowners about the unscrupulous foreclosure and loan
modification consultants who contact them. In some
cases, although foreclosure notices are posted on a home,
an unscrupulous owner will remove the warning, tell
tenants that nothing is wrong, and keep collecting rent
money. Tenants don't know the property is in foreclosure
until they are evicted. The notice required by this bill
provides additional warning."
RJG:kc 4/13/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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