BILL NUMBER: SB 483 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Corbett
FEBRUARY 26, 2009
An act to amend Section 2924c of the Civil Code, relating to
mortgages.
LEGISLATIVE COUNSEL'S DIGEST
SB 483, as introduced, Corbett. Mortgages: foreclosure.
Existing law requires that if a default on a mortgage is cured, as
specified, all proceedings instituted prior to that event are to be
dismissed or discontinued, as specified.
This bill would make technical, nonsubstantive changes to that
provision and related provisions.
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 2924c of the Civil Code is amended to read:
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 a failure
of the 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
the beneficiary or mortgagee in accordance with the terms of
that obligation or of the deed of trust or mortgage, the trustor or
mortgagor or mortgagor, 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 trust, or any other
person having a subordinate lien or encumbrance of record
thereon, on the real property, 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 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), which that 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. If the default theretofore existing, and
thereupon, is cured, all proceedings
theretofore had or instituted prior to that event
shall be dismissed or discontinued
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 Commissioner of Corporations 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 which
that 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. Where
If the beneficiary or mortgagee has made no
advances on defaults which that 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 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 which 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 that rescinds the declaration of
default and demand for sale.
(b) (1) The notice, notice of any
default described in this section, recorded pursuant to Section
2924, 2924 and mailed to any person
pursuant to Section 2924b, shall begin with the following statement,
printed or typed thereon: on the notice:
"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 three months 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 the
end of the three-month period stated above) 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 which 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 which that
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 which
that 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, 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
dollars ($300) if the unpaid principal sum secured is one hundred
fifty thousand dollars ($150,000) or less, or two hundred fifty
dollars ($250) 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. by this subdivision. 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, 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 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,
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, and the
postponement is for a period which 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 in this
subdivision 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 successors, any beneficiary under
a subordinate deed of trust or mortgage
mortgage, or any other person having a subordinate lien or
encumbrance of record thereon on the property
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 prescribed, and only as of the date set
forth herein. forth, in this subdivision.
As used in this subdivision, the term "business day" has the same
meaning as specified in Section 9.