Amended in Senate March 28, 2016

Senate Bill No. 983

Introduced by Senator Morrell

February 10, 2016

An act to amend Sections begin delete 2923.3 and 2924f end delete begin insert 2923.3, 2924, 2924c, 2924d, 2924f, and 2934a end insert of, and to amend and repeal Section 2924.11 of, the Civil Code, relating to mortgages.

LEGISLATIVE COUNSEL’S DIGEST

SB 983, as amended, Morrell. Mortgages and deeds of trust.

Existing law imposes various requirements to be satisfied prior to exercising a power of sale under a mortgage or deed of trust. Existing law, with respect to residential real property containing up to 4 dwelling units, requires a mortgagee, trustee, beneficiary, or authorized agent to provide to the mortgagor or trustor a copy of the recorded notice of default and a copy of the recorded notice of sale.

This bill would instead require the mortgagee, trustee, beneficiary, or authorized agent to provide the mortgagor or trustor with a copy of the notice of default indicating the recording date and a copy of the notice of sale indicating the recording date.

begin delete

Existing law, before any sale of property can be made under the power of sale contained in any deed of trust or mortgage, requires notice of the sale to be given. 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. Existing law, on and after April 1, 2012, also requires the notice of sale to contain language notifying potential bidders of specified risks involved in bidding on property at a trustee’s sale.

end delete begin delete

This bill would revise the language notifying potential bidders of specified risks involved in bidding at a trustee’s sale.

end delete begin insert

Existing law requires a legal owner to maintain vacant residential property purchased at a foreclosure sale or acquired by the owner through foreclosure under a mortgage or deed of trust and authorizes a governmental entity to impose a civil fine, as specified, for a violation. Existing law requires a governmental entity, prior to imposing a fine or penalty for failure to maintain a vacant property, as specified, to provide the owner of that property with a notice of the violation and an opportunity to correct that violation.

end insert begin insert

This bill would provide that a trustee under a deed of trust or a trustee named in a recorded substitution of trustee is not a legal owner or owner, as applicable, for purposes of the provisions described above. This bill would also provide that a trustee under a deed of trust is not responsible for any obligation or failure to maintain or register a property subject to foreclosure.

end insert

Existing law requires a mortgagee, beneficiary, or authorized agent to record a rescission of a notice of default or cancel a pending trustee sale, if applicable, upon the borrower executing a permanent foreclosure prevention alternative. Existing law, in the case of a short sale, requires the rescission or cancellation of the pending trustee’s sale to occur when the short sale has been approved and proof of funds or financing has been provided, as specified.

This bill would make a clarifying change by eliminating the reference to rescission in the case of a pending trustee’s sale.

begin insert

Existing law limits the amount of trustee’s or attorney’s fees that may be charged in connection with the enforcement of certain terms of obligation upon default in payment under a mortgage or deed of trust prior to reinstatement of a monetary default, or until the notice of sale is deposited in the mail, or otherwise at any time prior to the decree of foreclosure, to a base amount not to exceed $300 for an unpaid principal balance sum of $150,000 or less, or $250 plus specified additional percentages of unpaid principal sums, if the unpaid principal balance exceeds $150,000. Existing law, in lieu of an authorized charge, limits the amount of trustee’s or attorney’s fees after the notice of sale is deposited in the mail and until the property is sold by power of sale, to a base amount not to exceed $425 for an unpaid principal balance sum of $150,000 or less, or $360 plus specified additional percentages of unpaid principal sums, if the unpaid principal balance exceeds $150,000.

end insert begin insert

This bill would increase the base limitations on the amount of those trustee’s or attorney’s fees by $50.

end insert begin insert

Existing law, before any sale of property can be made under the power of sale contained in any deed of trust or mortgage, requires notice of the sale to be given. 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. Existing law, on and after April 1, 2012, also requires the notice of sale to contain language notifying potential bidders of specified risks involved in bidding on property at a trustee’s sale.

end insert begin insert

This bill would revise the language notifying potential bidders of specified risks involved in bidding at a trustee’s sale.

end insert

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 2923.3 of the Civil Code is amended to
read:

2923.3.  

(a) With respect to residential real property containing
no more than four dwelling units, a mortgagee, trustee, beneficiary,
or authorized agent shall provide to the mortgagor or trustor a copy
of the notice of default indicating the recording date with an
attached separate summary document of the notice of default in
English and the languages described in Section 1632, as set forth
in subdivision (c), and a copy of the notice of sale indicating the
recording date with an attached separate summary document of
the information required to be contained in the notice of sale in
English and the languages described in Section 1632, as set forth
in subdivision (d). These summaries are not required to be recorded
or published. This subdivision shall become operative on April 1,
2013, or 90 days following the issuance of the translations by the
Department of Business Oversight pursuant to subdivision (b),
whichever is later.

(b) (1) The Department of Business Oversight shall provide a
standard translation of the statement in paragraph (1) of subdivision
(c), and of the summary of the notice of default, as set forth in
paragraph (2) of subdivision (c) in the languages described in
Section 1632.

(2) The Department of Business Oversight shall provide a
standard translation of the statement in paragraph (1) of subdivision
(d), and of the summary of the notice of sale, as set forth in
paragraph (2) of subdivision (d).

(3) The department shall make the translations described in
paragraphs (1) and (2) available without charge on its Internet Web
site. Any mortgagee, trustee, beneficiary, or authorized agent who
provides the department’s translations in the manner prescribed
by this section shall be in compliance with this section.

(c) (1) The following statement shall appear in the languages
described in Section 1632 at the beginning of the notice of default:

NOTE: THERE IS A SUMMARY OF THE INFORMATION
IN THIS DOCUMENT ATTACHED.

(2) The following summary of key information shall be attached
to the copy of the notice of default provided to the mortgagor or
trustor:

SUMMARY OF KEY INFORMATION

The attached notice of default was sent to [name of the trustor],
in relation to [description of the property that secures the mortgage
or deed of trust in default]. This property may be sold to satisfy
your obligation and any other obligation secured by the deed of
trust or mortgage that is in default. [Trustor] has, as described in
the notice of default, breached the mortgage or deed of trust on
the property described above.

IMPORTANT NOTICE: IF YOUR PROPERTY IS IN
FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR
PAYMENTS, IT MAY BE SOLD WITHOUT ANY COURT
ACTION, and you may have the legal right to bring your account
in good standing by paying all of your past due payments plus
permitted costs and expenses within the time permitted by law for
reinstatement of your account, which is normally five business
days prior to the date set for the sale of your property. No sale date
may be set until approximately 90 days from the date the attached
notice of default may be recorded (which date of recordation
appears on the notice).

This amount is ____________ as of ___(date)____________and
will increase until your account becomes current.

While your property is in foreclosure, you still must pay other
obligations (such as insurance and taxes) required by your note
and deed of trust or mortgage. If you fail to make future payments
on the loan, pay taxes on the property, provide insurance on the
property, or pay other obligations as required in the note and deed
of trust or mortgage, the beneficiary or mortgagee may insist that
you do so in order to reinstate your account in good standing. In
addition, the beneficiary or mortgagee may require as a condition
to reinstatement that you provide reliable written evidence that
you paid all senior liens, property taxes, and hazard insurance
premiums.

Upon your written request, the beneficiary or mortgagee will
give you a written itemization of the entire amount you must pay.
You may not have to pay the entire unpaid portion of your account,
even though full payment was demanded, but you must pay all
amounts in default at the time payment is made. However, you
and your beneficiary or mortgagee may mutually agree in writing
prior to the time the notice of sale is posted (which may not be
earlier than three months after this notice of default is recorded)
to, among other things, (1) provide additional time in which to
cure the default by transfer of the property or otherwise; or (2)
establish a schedule of payments in order to cure your default; or
both (1) and (2).

Following the expiration of the time period referred to in the
first paragraph of this notice, unless the obligation being foreclosed
upon or a separate written agreement between you and your creditor
permits a longer period, you have only the legal right to stop the
sale of your property by paying the entire amount demanded by
your creditor.

To find out the amount you must pay, or to arrange for payment
to stop the foreclosure, or if your property is in foreclosure for any
other reason, contact:

____________________________________

(Name of beneficiary or mortgagee)

____________________________________

(Mailing address)

____________________________________

(Telephone)

If you have any questions, you should contact a lawyer or the
governmental agency begin delete which end delete begin insert that end insert may have insured your loan.

Notwithstanding the fact that your property is in foreclosure,
you may offer your property for sale, provided the sale is concluded
prior to the conclusion of the foreclosure.

Remember, YOU MAY LOSE LEGAL RIGHTS IF YOU DO
NOT TAKE PROMPT ACTION.

If you would like additional copies of this summary, you may
obtain them by calling [insert telephone number].

(d) (1) The following statement shall appear in the languages
described in Section 1632 at the beginning of the notice of sale:

NOTE: THERE IS A SUMMARY OF THE INFORMATION
IN THIS DOCUMENT ATTACHED.

(2) The following summary of key information shall be attached
to the copy of the notice of sale provided to the mortgagor or
trustor:

SUMMARY OF KEY INFORMATION

The attached notice of sale was sent to [trustor], in relation to
[description of the property that secures the mortgage or deed of
trust in default].

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.

The total amount due in the notice of sale is ____.

Your property is scheduled to be sold on [insert date and time
of sale] at [insert location of sale].

However, the sale date shown on the attached 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.

If you would like additional copies of this summary, you may
obtain them by calling [insert telephone number].

(e) Failure to provide these summaries to the mortgagor or
trustor shall have the same effect as if the notice of default or notice
of sale were incomplete or not provided.

(f) This section sets forth a requirement for translation in
languages other than English, and a document complying with the
provisions of this section may be recorded pursuant to subdivision
(b) of Section 27293 of the Government Code. A document that
complies with this section shall not be rejected for recordation on
the ground that some part of the document is in a language other
than English.

begin delete

SEC. 2.  

Section 2924f of the Civil Code 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.

(2) 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 is
contiguous to the county in which the property or some part thereof
is situated and 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.

(3) 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.

(4) 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.

(5) The notice of sale shall contain the name, street address in
this state, which may reflect an agent of the trustee, and either a
toll-free telephone number or telephone number in this state of the
trustee, and the name of the original trustor, and also shall contain
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.

(6) 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.

(7) 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.

(8) (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 paragraphs (1) to (7),
inclusive:

NOTICE TO POTENTIAL BIDDERS: If you are considering
bidding on this property, you should understand that there are risks
involved in bidding at a trustee auction. 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 foreclosed by this auction 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 foreclosed, 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.

(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 this section.

(D) Information provided pursuant to subparagraph (A) does
not constitute the public declaration required by subdivision (d)
of Section 2924g.

(9) 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) With respect to residential real property containing no more
than four dwelling units, a separate document containing a
summary of the notice of sale information in English and the
languages described in Section 1632 shall be attached to the notice
of sale provided to the mortgagor or trustor pursuant to Section
2923.3.

end delete

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 2924 of the end insert begin insert Civil Code end insert begin insert is amended to read: end insert

2924.  

(a) Every transfer of an interest in property, other than
in trust, made only as a security for the performance of another
act, is to be deemed a mortgage, except when in the case of
personal property it is accompanied by actual change of possession,
in which case it is to be deemed a pledge. Where, by a mortgage
created after July 27, 1917, of any estate in real property, other
than an estate at will or for years, less than two, or in any transfer
in trust made after July 27, 1917, of a like estate to secure the
performance of an obligation, a power of sale is conferred upon
the mortgagee, trustee, or any other person, to be exercised after
a breach of the obligation for which that mortgage or transfer is a
security, the power shall not be exercised except where the
mortgage or transfer is made pursuant to an order, judgment, or
decree of a court of record, or to secure the payment of bonds or
other evidences of indebtedness authorized or permitted to be
issued by the begin delete Commissioner of Corporations, end delete begin insert Department of
Business Oversight, end insert or is made by a public utility subject to the
provisions of the Public Utilities Act, until all of the following
apply:

(1) The trustee, mortgagee, or beneficiary, or any of their
authorized agents shall first file for record, in the office of the
recorder of each county wherein the mortgaged or trust property
or some part or parcel thereof is situated, a notice of default. That
notice of default shall include all of the following:

(A) A statement identifying the mortgage or deed of trust by
stating the name or names of the trustor or trustors and giving the
book and page, or instrument number, if applicable, where the
mortgage or deed of trust is recorded or a description of the
mortgaged or trust property.

(B) A statement that a breach of the obligation for which the
mortgage or transfer in trust is security has occurred.

(C) A statement setting forth the nature of each breach actually
known to the beneficiary and of his or her election to sell or cause
to be sold the property to satisfy that obligation and any other
obligation secured by the deed of trust or mortgage that is in
default.

(D) If the default is curable pursuant to Section 2924c, the
statement specified in paragraph (1) of subdivision (b) of Section
2924c.

(2) Not less than three months shall elapse from the filing of
the notice of default.

(3) Except as provided in paragraph (4), after the lapse of the
three months described in paragraph (2), the mortgagee, trustee,
or other person authorized to take the sale shall give notice of sale,
stating the time and place thereof, in the manner and for a time
not less than that set forth in Section 2924f.

(4) Notwithstanding paragraph (3), the mortgagee, trustee, or
other person authorized to take sale may record a notice of sale
pursuant to Section 2924f up to five days before the lapse of the
three-month period described in paragraph (2), provided that the
date of sale is no earlier than three months and 20 days after the
recording of the notice of default.

(5) Until January 1, 2018, whenever a sale is postponed for a
period of at least 10 business days pursuant to Section 2924g, a
mortgagee, beneficiary, or authorized agent shall provide written
notice to a borrower regarding the new sale date and time, within
five business days following the postponement. Information
provided pursuant to this paragraph shall not constitute the public
declaration required by subdivision (d) of Section 2924g. Failure
to comply with this paragraph shall not invalidate any sale that
would otherwise be valid under Section 2924f. This paragraph
shall be inoperative on January 1, 2018.

(6) No entity shall record or cause a notice of default to be
recorded or otherwise initiate the foreclosure process unless it is
the holder of the beneficial interest under the mortgage or deed of
trust, the original trustee or the substituted trustee under the deed
of trust, or the designated agent of the holder of the beneficial
interest. No agent of the holder of the beneficial interest under the
mortgage or deed of trust, original trustee or substituted trustee
under the deed of trust may record a notice of default or otherwise
commence the foreclosure process except when acting within the
scope of authority designated by the holder of the beneficial
interest.

(b)  begin insert (1) end insert begin insert   end insert In performing acts required by this article, begin delete the end delete begin insert both of
the following shall apply: end insert

begin insert (A) end insert begin insert   end insert begin insert The end insert trustee shall incur no liability for any good faith error
resulting from reliance on information provided in good faith by
the beneficiary regarding the nature and the amount of the default
under the secured obligation, deed of trust, or mortgage. begin delete In
performing the acts required by this article, a end delete

begin insert (B) end insert begin insert   end insert begin insert A end insert trustee shall not be subject to Title 1.6c (commencing
with Section 1788) of Part 4.

begin insert

(2) A trustee under a deed of trust shall not be a legal owner
or owner, as applicable, for purposes of Section 2929.3 or 2929.4.

end insert begin insert

(3) A trustee under a deed of trust shall not be responsible for
any obligation or failure to maintain or register a property subject
to foreclosure.

end insert

(c) A recital in the deed executed pursuant to the power of sale
of compliance with all requirements of law regarding the mailing
of copies of notices or the publication of a copy of the notice of
default or the personal delivery of the copy of the notice of default
or the posting of copies of the notice of sale or the publication of
a copy thereof shall constitute prima facie evidence of compliance
with these requirements and conclusive evidence thereof in favor
of bona fide purchasers and encumbrancers for value and without
notice.

(d) All of the following shall constitute privileged
communications pursuant to Section 47:

(1) The mailing, publication, and delivery of notices as required
by this section.

(2) Performance of the procedures set forth in this article.

(3) Performance of the functions and procedures set forth in
this article if those functions and procedures are necessary to carry
out the duties described in Sections 729.040, 729.050, and 729.080
of the Code of Civil Procedure.

(e) There is a rebuttable presumption that the beneficiary
actually knew of all unpaid loan payments on the obligation owed
to the beneficiary and secured by the deed of trust or mortgage
subject to the notice of default. However, the failure to include an
actually known default shall not invalidate the notice of sale and
the beneficiary shall not be precluded from asserting a claim to
this omitted default or defaults in a separate notice of default.

(f) With respect to residential real property containing no more
than four dwelling units, a separate document containing a
summary of the notice of default information in English and the
languages described in Section 1632 shall be attached to the notice
of default provided to the mortgagor or trustor pursuant to Section
2923.3.

SEC. 3.  

Section 2924.11 of the Civil Code, as added by Section
14 of Chapter 86 of the Statutes of 2012, is amended to read:

2924.11.  

(a) If a foreclosure prevention alternative is approved
in writing prior to the recordation of a notice of default, a mortgage
servicer, mortgagee, trustee, beneficiary, or authorized agent shall
not record a notice of default under either of the following
circumstances:

(1) The borrower is in compliance with the terms of a written
trial or permanent loan modification, forbearance, or repayment
plan.

(2) A foreclosure prevention alternative has been approved in
writing by all parties, including, for example, the first lien investor,
junior lienholder, and mortgage insurer, as applicable, and proof
of funds or financing has been provided to the servicer.

(b) If a foreclosure prevention alternative is approved in writing
after the recordation of a notice of default, a mortgage servicer,
mortgagee, trustee, beneficiary, or authorized agent shall not record
a notice of sale or conduct a trustee’s sale under either of the
following circumstances:

(1) The borrower is in compliance with the terms of a written
trial or permanent loan modification, forbearance, or repayment
plan.

(2) A foreclosure prevention alternative has been approved in
writing by all parties, including, for example, the first lien investor,
junior lienholder, and mortgage insurer, as applicable, and proof
of funds or financing has been provided to the servicer.

(c) When a borrower accepts an offered first lien loan
modification or other foreclosure prevention alternative, the
mortgage servicer shall provide the borrower with a copy of the
fully executed loan modification agreement or agreement
evidencing the foreclosure prevention alternative following receipt
of the executed copy from the borrower.

(d) A mortgagee, beneficiary, or authorized agent shall record
a rescission of a notice of default or cancel a pending trustee’s
sale, if applicable, upon the borrower executing a permanent
foreclosure prevention alternative. In the case of a short sale, the
cancellation of the pending trustee’s sale shall occur when the
short sale has been approved by all parties and proof of funds or
financing has been provided to the mortgagee, beneficiary, or
authorized agent.

(e) The mortgage servicer shall not charge any application,
processing, or other fee for a first lien loan modification or other
foreclosure prevention alternative.

(f) The mortgage servicer shall not collect any late fees for
periods during which a complete first lien loan modification
application is under consideration or a denial is being appealed,
the borrower is making timely modification payments, or a
foreclosure prevention alternative is being evaluated or exercised.

(g) If a borrower has been approved in writing for a first lien
loan modification or other foreclosure prevention alternative, and
the servicing of that borrower’s loan is transferred or sold to
another mortgage servicer, the subsequent mortgage servicer shall
continue to honor any previously approved first lien loan
modification or other foreclosure prevention alternative, in
accordance with the provisions of the act that added this section.

(h) This section shall apply only to mortgages or deeds of trust
described in Section 2924.15.

(i) This section shall not apply to entities described in
subdivision (b) of Section 2924.18.

(j)  This section shall remain in effect only until January 1, 2018,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2018, deletes or extends that date.

SEC. 4.  

Section 2924.11 of the Civil Code, as added by Section
14 of Chapter 87 of the Statutes of 2012, is repealed.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 2924c of the end insert begin insert Civil Code end insert begin insert is amended to read: end insert

2924c.  

(a) (1) Whenever all or a portion of the principal sum
of any obligation secured by deed of trust or mortgage on real
property or an estate for years therein hereafter executed has, prior
to the maturity date fixed in that obligation, become due or been
declared due by reason of default in payment of interest or of any
installment of principal, or by reason of failure of trustor or
mortgagor to pay, in accordance with the terms of that obligation
or of the deed of trust or mortgage, taxes, assessments, premiums
for insurance, or advances made by beneficiary or mortgagee in
accordance with the terms of that obligation or of the deed of trust
or mortgage, the trustor or mortgagor or his or her successor in
interest in the mortgaged or trust property or any part thereof, or
any beneficiary under a subordinate deed of trust or any other
person having a subordinate lien or encumbrance of record thereon,
at any time within the period specified in subdivision (e), if the
power of sale therein is to be exercised, or, otherwise at any time
prior to entry of the decree of foreclosure, may pay to the
beneficiary or the mortgagee or their successors in interest,
respectively, the entire amount due, at the time payment is
tendered, with respect to (A) all amounts of principal, interest,
taxes, assessments, insurance premiums, or advances actually
known by the beneficiary to be, and that are, in default and shown
in the notice of default, under the terms of the deed of trust or
mortgage and the obligation secured thereby, (B) all amounts in
default on recurring obligations not shown in the notice of default,
and (C) all reasonable costs and expenses, subject to subdivision
(c), begin delete which end delete begin insert that end insert are actually incurred in enforcing the terms of the
obligation, deed of trust, or mortgage, and trustee’s or attorney’s
fees, subject to subdivision (d), other than the portion of principal
as would not then be due had no default occurred, and thereby cure
the default theretofore existing, and thereupon, all proceedings
theretofore had or instituted shall be dismissed or discontinued
and the obligation and deed of trust or mortgage shall be reinstated
and shall be and remain in force and effect, the same as if the
acceleration had not occurred. This section does not apply to bonds
or other evidences of indebtedness authorized or permitted to be
issued by the begin delete Commissioner of Corporations end delete begin insert Department of
Business Oversight end insert or made by a public utility subject to the Public
Utilities Code. For the purposes of this subdivision, the term
“recurring obligation” means all amounts of principal and interest
on the loan, or rents, subject to the deed of trust or mortgage in
default due after the notice of default is recorded; all amounts of
principal and interest or rents advanced on senior liens or
leaseholds begin delete which end delete begin insert that end insert are advanced after the recordation of the
notice of default; and payments of taxes, assessments, and hazard
insurance advanced after recordation of the notice of default. If
the beneficiary or mortgagee has made no advances on defaults
begin delete which end delete begin insert that end insert would constitute recurring obligations, the beneficiary
or mortgagee may require the trustor or mortgagor to provide
reliable written evidence that the amounts have been paid prior to
reinstatement.

(2) If the trustor, mortgagor, or other person authorized to cure
the default pursuant to this subdivision does cure the default, the
beneficiary or mortgagee or the agent for the beneficiary or
mortgagee shall, within 21 days following the reinstatement,
execute and deliver to the trustee a notice of rescission begin delete which end delete begin insert that end insert
rescinds the declaration of default and demand for sale and advises
the trustee of the date of reinstatement. The trustee shall cause the
notice of rescission to be recorded within 30 days of receipt of the
notice of rescission and of all allowable fees and costs.

No charge, except for the recording fee, shall be made against
the trustor or mortgagor for the execution and recordation of the
notice which rescinds the declaration of default and demand for
sale.

(b) (1) The notice, of any default described in this section,
recorded pursuant to Section 2924, and mailed to any person
pursuant to Section 2924b, shall begin with the following
statement, printed or typed thereon:

“IMPORTANT NOTICE [14-point boldface type if printed or
in capital letters if typed]

IF YOUR PROPERTY IS IN FORECLOSURE BECAUSE
YOU ARE BEHIND IN YOUR PAYMENTS, IT MAY BE SOLD
WITHOUT ANY COURT ACTION, [14-point boldface type if
printed or in capital letters if typed] and you may have the legal
right to bring your account in good standing by paying all of your
past due payments plus permitted costs and expenses within the
time permitted by law for reinstatement of your account, which is
normally five business days prior to the date set for the sale of
your property. No sale date may be set until approximately 90 days
from the date this notice of default may be recorded (which date
of recordation appears on this notice).

 

This amount is	as of
	(Date)

 

and will increase until your account becomes current.

While your property is in foreclosure, you still must pay other
obligations (such as insurance and taxes) required by your note
and deed of trust or mortgage. If you fail to make future payments
on the loan, pay taxes on the property, provide insurance on the
property, or pay other obligations as required in the note and deed
of trust or mortgage, the beneficiary or mortgagee may insist that
you do so in order to reinstate your account in good standing. In
addition, the beneficiary or mortgagee may require as a condition
to reinstatement that you provide reliable written evidence that
you paid all senior liens, property taxes, and hazard insurance
premiums.

Upon your written request, the beneficiary or mortgagee will
give you a written itemization of the entire amount you must pay.
You may not have to pay the entire unpaid portion of your account,
even though full payment was demanded, but you must pay all
amounts in default at the time payment is made. However, you
and your beneficiary or mortgagee may mutually agree in writing
prior to the time the notice of sale is posted (which may not be
earlier than three months after this notice of default is recorded)
to, among other things, (1) provide additional time in which to
cure the default by transfer of the property or otherwise; or (2)
establish a schedule of payments in order to cure your default; or
both (1) and (2).

Following the expiration of the time period referred to in the
first paragraph of this notice, unless the obligation being foreclosed
upon or a separate written agreement between you and your creditor
permits a longer period, you have only the legal right to stop the
sale of your property by paying the entire amount demanded by
your creditor.

To find out the amount you must pay, or to arrange for payment
to stop the foreclosure, or if your property is in foreclosure for any
other reason, contact:

 

	(Name of beneficiary or mortgagee)
	(Mailing address)
	(Telephone)

 

If you have any questions, you should contact a lawyer or the
governmental agency begin delete which end delete begin insert that end insert may have insured your loan.

Notwithstanding the fact that your property is in foreclosure,
you may offer your property for sale, provided the sale is concluded
prior to the conclusion of the foreclosure.

Remember, YOU MAY LOSE LEGAL RIGHTS IF YOU DO
NOT TAKE PROMPT ACTION. [14-point boldface type if printed
or in capital letters if typed]”

Unless otherwise specified, the notice, if printed, shall appear
in at least 12-point boldface type.

If the obligation secured by the deed of trust or mortgage is a
contract or agreement described in paragraph (1) or (4) of
subdivision (a) of Section 1632, the notice required herein shall
be in Spanish if the trustor requested a Spanish language translation
of the contract or agreement pursuant to Section 1632. If the
obligation secured by the deed of trust or mortgage is contained
in a home improvement contract, as defined in Sections 7151.2
and 7159 of the Business and Professions Code, which is subject
to Title 2 (commencing with Section 1801), the seller shall specify
on the contract whether or not the contract was principally
negotiated in Spanish and if the contract was principally negotiated
in Spanish, the notice required herein shall be in Spanish. No
assignee of the contract or person authorized to record the notice
of default shall incur any obligation or liability for failing to mail
a notice in Spanish unless Spanish is specified in the contract or
the assignee or person has actual knowledge that the secured
obligation was principally negotiated in Spanish. Unless specified
in writing to the contrary, a copy of the notice required by
subdivision (c) of Section 2924b shall be in English.

(2) Any failure to comply with the provisions of this subdivision
shall not affect the validity of a sale in favor of a bona fide
purchaser or the rights of an encumbrancer for value and without
notice.

(c) Costs and expenses begin delete which end delete begin insert that end insert may be charged pursuant to
Sections 2924 to 2924i, inclusive, shall be limited to the costs
incurred for recording, mailing, including certified and express
mail charges, publishing, and posting notices required by Sections
2924 to 2924i, inclusive, postponement pursuant to Section 2924g
not to exceed fifty dollars ($50) per postponement and a fee for a
trustee’s sale guarantee or, in the event of judicial foreclosure, a
litigation guarantee. For purposes of this subdivision, a trustee or
beneficiary may purchase a trustee’s sale guarantee at a rate
meeting the standards contained in Sections 12401.1 and 12401.3
of the Insurance Code.

(d) Trustee’s or attorney’s fees begin delete which end delete begin insert that end insert may be charged
pursuant to subdivision (a), or until the notice of sale is deposited
in the mail to the trustor as provided in Section 2924b, if the sale
is by power of sale contained in the deed of trust or mortgage, or,
otherwise at any time prior to the decree of foreclosure, are hereby
authorized to be in a base amount that does not exceed three
hundred begin insert fifty end insert dollars begin delete ($300) end delete begin insert ($350) end insert if the unpaid principal sum
secured is one hundred fifty thousand dollars ($150,000) or less,
or begin delete two end delete begin insert three end insert hundred begin delete fifty end delete dollars begin delete ($250) end delete begin insert ($300) end insert if the unpaid
principal sum secured exceeds one hundred fifty thousand dollars
($150,000), plus one-half of 1 percent of the unpaid principal sum
secured exceeding fifty thousand dollars ($50,000) up to and
including one hundred fifty thousand dollars ($150,000), plus
one-quarter of 1 percent of any portion of the unpaid principal sum
secured exceeding one hundred fifty thousand dollars ($150,000)
up to and including five hundred thousand dollars ($500,000), plus
one-eighth of 1 percent of any portion of the unpaid principal sum
secured exceeding five hundred thousand dollars ($500,000). Any
charge for trustee’s or attorney’s fees authorized by this subdivision
shall be conclusively presumed to be lawful and valid where the
charge does not exceed the amounts authorized herein. For
purposes of this subdivision, the unpaid principal sum secured
shall be determined as of the date the notice of default is recorded.

(e) Reinstatement of a monetary default under the terms of an
obligation secured by a deed of trust, or mortgage may be made
at any time within the period commencing with the date of
recordation of the notice of default until five business days prior
to the date of sale set forth in the initial recorded notice of sale.

In the event the sale does not take place on the date set forth in
the initial recorded notice of sale or a subsequent recorded notice
of sale is required to be given, the right of reinstatement shall be
revived as of the date of recordation of the subsequent notice of
sale, and shall continue from that date until five business days
prior to the date of sale set forth in the subsequently recorded notice
of sale.

In the event the date of sale is postponed on the date of sale set
forth in either an initial or any subsequent notice of sale, or is
postponed on the date declared for sale at an immediately preceding
postponement of sale, and, the postponement is for a period begin delete which end delete
begin insert that end insert exceeds five business days from the date set forth in the notice
of sale, or declared at the time of postponement, then the right of
reinstatement is revived as of the date of postponement and shall
continue from that date until five business days prior to the date
of sale declared at the time of the postponement.

Nothing contained herein shall give rise to a right of
reinstatement during the period of five business days prior to the
date of sale, whether the date of sale is noticed in a notice of sale
or declared at a postponement of sale.

Pursuant to the terms of this subdivision, no beneficiary, trustee,
mortgagee, or their agents or successors shall be liable in any
manner to a trustor, mortgagor, their agents or successors or any
beneficiary under a subordinate deed of trust or mortgage or any
other person having a subordinate lien or encumbrance of record
thereon for the failure to allow a reinstatement of the obligation
secured by a deed of trust or mortgage during the period of five
business days prior to the sale of the security property, and no such
right of reinstatement during this period is created by this section.
Any right of reinstatement created by this section is terminated
five business days prior to the date of sale set forth in the initial
date of sale, and is revived only as prescribed herein and only as
of the date set forth herein.

As used in this subdivision, the term “business day” has the same
meaning as specified in Section 9.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 2924d of the end insert begin insert Civil Code end insert begin insert is amended to read: end insert

2924d.  

(a) Commencing with the date that the notice of sale
is deposited in the mail, as provided in Section 2924b, and until
the property is sold pursuant to the power of sale contained in the
mortgage or deed of trust, a beneficiary, trustee, mortgagee, or his
or her agent or successor in interest, may demand and receive from
a trustor, mortgagor, or his or her agent or successor in interest,
or any beneficiary under a subordinate deed of trust, or any other
person having a subordinate lien or encumbrance of record those
reasonable costs and expenses, to the extent allowed by subdivision
(c) of Section 2924c, begin delete which end delete begin insert that end insert are actually incurred in enforcing
the terms of the obligation and trustee’s or attorney’s fees begin delete which end delete
begin insert that end insert are hereby authorized to be in a base amount begin delete which end delete begin insert that end insert does
not exceed four hundred begin delete twenty-five end delete begin insert seventy-five end insert dollars begin delete ($425) end delete
begin insert ($475) end insert if the unpaid principal sum secured is one hundred fifty
thousand dollars ($150,000) or less, or begin delete three end delete begin insert four end insert hundred begin delete sixty end delete
begin insert ten end insert dollars begin delete ($360) end delete begin insert ($410) end insert if the unpaid principal sum secured
exceeds one hundred fifty thousand dollars ($150,000), plus 1
percent of any portion of the unpaid principal sum secured
exceeding fifty thousand dollars ($50,000) up to and including one
hundred fifty thousand dollars ($150,000), plus one-half of 1
percent of any portion of the unpaid principal sum secured
exceeding one hundred fifty thousand dollars ($150,000) up to and
including five hundred thousand dollars ($500,000), plus
one-quarter of 1 percent of any portion of the unpaid principal sum
secured exceeding five hundred thousand dollars ($500,000). For
purposes of this subdivision, the unpaid principal sum secured
shall be determined as of the date the notice of default is recorded.
Any charge for trustee’s or attorney’s fees authorized by this
subdivision shall be conclusively presumed to be lawful and valid
where that charge does not exceed the amounts authorized herein.
Any charge for trustee’s or attorney’s fees made pursuant to this
subdivision shall be in lieu of and not in addition to those charges
authorized by subdivision (d) of Section 2924c.

(b) Upon the sale of property pursuant to a power of sale, a
trustee, or his or her agent or successor in interest, may demand
and receive from a beneficiary, or his or her agent or successor in
interest, or may deduct from the proceeds of the sale, those
reasonable costs and expenses, to the extent allowed by subdivision
(c) of Section 2924c, begin delete which end delete begin insert that end insert are actually incurred in enforcing
the terms of the obligation and trustee’s or attorney’s fees begin delete which end delete
begin insert that end insert are hereby authorized to be in an amount which does not
exceed four hundred twenty-five dollars ($425) or one percent of
the unpaid principal sum secured, whichever is greater. For
purposes of this subdivision, the unpaid principal sum secured
shall be determined as of the date the notice of default is recorded.
Any charge for trustee’s or attorney’s fees authorized by this
subdivision shall be conclusively presumed to be lawful and valid
where that charge does not exceed the amount authorized herein.
Any charges for trustee’s or attorney’s fees made pursuant to this
subdivision shall be in lieu of and not in addition to those charges
authorized by subdivision (a) of this section and subdivision (d)
of Section 2924c.

(c) (1) No person shall pay or offer to pay or collect any rebate
or kickback for the referral of business involving the performance
of any act required by this article.

(2) Any person who violates this subdivision shall be liable to
the trustor for three times the amount of any rebate or kickback,
plus reasonable attorney’s fees and costs, in addition to any other
remedies provided by law.

(3) No violation of this subdivision shall affect the validity of
a sale in favor of a bona fide purchaser or the rights of an
encumbrancer for value without notice.

(d) It shall not be unlawful for a trustee to pay or offer to pay a
fee to an agent or subagent of the trustee for work performed by
the agent or subagent in discharging the trustee’s obligations under
the terms of the deed of trust. Any payment of a fee by a trustee
to an agent or subagent of the trustee for work performed by the
agent or subagent in discharging the trustee’s obligations under
the terms of the deed of trust shall be conclusively presumed to
be lawful and valid if the fee, when combined with other fees of
the trustee, does not exceed in the aggregate the trustee’s fee
authorized by subdivision (d) of Section 2924c or subdivision (a)
or (b) of this section.

(e) When a court issues a decree of foreclosure, it shall have
discretion to award attorney’s fees, costs, and expenses as are
reasonable, if provided for in the note, deed of trust, or mortgage,
pursuant to Section 580c of the Code of Civil Procedure.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 2924f of the end insert begin insert Civil Code end insert begin insert is amended to read: end insert

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.

(2) 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 is
contiguous to the county in which the property or some part thereof
is situated and 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.

(3) 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.

(4) 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.

(5) The notice of sale shall contain the name, street address in
this state, which may reflect an agent of the trustee, and either a
toll-free telephone number or telephone number in this state of the
trustee, and the name of the original trustor, and also shall contain
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.

(6) 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.

(7) 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.

(8) (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 paragraphs (1) to (7),
inclusive:

NOTICE TO POTENTIAL BIDDERS: If you are considering
bidding on this begin delete property lien, end delete begin insert property, end insert you should understand that
there are risks involved in bidding at a trustee auction. begin delete You will
be bidding on a lien, not on the property itself. end delete 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 begin delete auctioned off end delete begin insert foreclosed by this auction end insert 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 begin delete auctioned off, end delete begin insert foreclosed, end insert 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.

(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 begin delete Section 2924f. end delete begin insert this
section. end insert

(D) Information provided pursuant to subparagraph (A) does
not constitute the public declaration required by subdivision (d)
of Section 2924g.

(9) 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 begin delete which end delete begin insert that end insert contain a power of sale and begin delete which end delete begin insert that end insert 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) With respect to residential real property containing no more
than four dwelling units, a separate document containing a
summary of the notice of sale information in English and the
languages described in Section 1632 shall be attached to the notice
of sale provided to the mortgagor or trustor pursuant to Section
2923.3.

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 2934a of the end insert begin insert Civil Code end insert begin insert is amended to read: end insert

2934a.  

(a) (1) The trustee under a trust deed upon real property
or an estate for years therein given to secure an obligation to pay
money and conferring no other duties upon the trustee than those
which are incidental to the exercise of the power of sale therein
conferred, may be substituted by the recording in the county in
which the property is located of a substitution executed and
acknowledged by: (A) all of the beneficiaries under the trust deed,
or their successors in interest, and the substitution shall be effective
notwithstanding any contrary provision in any trust deed executed
on or after January 1, 1968; or (B) the holders of more than 50
percent of the record beneficial interest of a series of notes secured
by the same real property or of undivided interests in a note secured
by real property equivalent to a series transaction, exclusive of
any notes or interests of a licensed real estate broker that is the
issuer or servicer of the notes or interests or of any affiliate of that
licensed real estate broker.

(2) A substitution executed pursuant to subparagraph (B) of
paragraph (1) is not effective unless all the parties signing the
substitution sign, under penalty of perjury, a separate written
document stating the following:

(A) The substitution has been signed pursuant to subparagraph
(B) of paragraph (1).

(B) None of the undersigned is a licensed real estate broker or
an affiliate of the broker that is the issuer or servicer of the
obligation secured by the deed of trust.

(C) The undersigned together hold more than 50 percent of the
record beneficial interest of a series of notes secured by the same
real property or of undivided interests in a note secured by real
property equivalent to a series transaction.

(D) Notice of the substitution was sent by certified mail, postage
prepaid, with return receipt requested to each holder of an interest
in the obligation secured by the deed of trust who has not joined
in the execution of the substitution or the separate document.

The separate document shall be attached to the substitution and
be recorded in the office of the county recorder of each county in
which the real property described in the deed of trust is located.
Once the document required by this paragraph is recorded, it shall
constitute conclusive evidence of compliance with the requirements
of this paragraph in favor of substituted trustees acting pursuant
to this section, subsequent assignees of the obligation secured by
the deed of trust and subsequent bona fide purchasers or
encumbrancers for value of the real property described therein.

(3) For purposes of this section, “affiliate of the licensed real
estate broker” includes any person as defined in Section 25013 of
the Corporations Code that is controlled by, or is under common
control with, or who controls, a licensed real estate broker.
“Control” means the possession, direct or indirect, of the power
to direct or cause the direction of management and policies.

(4) The substitution shall contain the date of recordation of the
trust deed, the name of the trustor, the book and page or instrument
number where the trust deed is recorded, and the name of the new
trustee. From the time the substitution is filed for record, the new
trustee shall succeed to all the powers, duties, authority, and title
granted and delegated to the trustee named in the deed of trust. A
substitution may be accomplished, with respect to multiple deeds
of trust which are recorded in the same county in which the
substitution is being recorded and which all have the same trustee
and beneficiary or beneficiaries, by recording a single document,
complying with the requirements of this section, substituting
trustees for all those deeds of trust.

(b) If the substitution is executed, but not recorded, prior to or
concurrently with the recording of the notice of default, the
beneficiary or beneficiaries or their authorized agents shall cause
notice of the substitution to be mailed prior to or concurrently with
the recording thereof, in the manner provided in Section 2924b,
to all persons to whom a copy of the notice of default would be
required to be mailed by the provisions of Section 2924b. An
affidavit shall be attached to the substitution that notice has been
given to those persons and in the manner required by this
subdivision.

(c) If the substitution is effected after a notice of default has
been recorded but prior to the recording of the notice of sale, the
beneficiary or beneficiaries or their authorized agents shall cause
a copy of the substitution to be mailed, prior to, or concurrently
with, the recording thereof, in the manner provided in Section
2924b, to the trustee then of record and to all persons to whom a
copy of the notice of default would be required to be mailed by
the provisions of Section 2924b. An affidavit shall be attached to
the substitution that notice has been given to those persons and in
the manner required by this subdivision.

(d)   begin insert (1) end insert begin insert   end insert A trustee named in a recorded substitution of trustee
shall be deemed to be authorized to act as the trustee under the
mortgage or deed of trust for all purposes from the date the
substitution is executed by the mortgagee, beneficiaries, or by their
authorized agents. Nothing herein requires that a trustee under a
recorded substitution accept the substitution. Once recorded, the
substitution shall constitute conclusive evidence of the authority
of the substituted trustee or his or her agents to act pursuant to this
section.

begin insert

(2) A trustee named in a recorded substitution of trustee shall
not be a legal owner or owner, as applicable, for purposes of
Section 2929.3 or 2929.4.

end insert

(e)  Notwithstanding any provision of this section or any
provision in any deed of trust, unless a new notice of sale
containing the name, street address, and telephone number of the
substituted trustee is given pursuant to Section 2924f after
execution of the substitution, any sale conducted by the substituted
trustee shall be void.

(f)  This section shall become operative on January 1, 1998.