BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2475
                                                                  Page  1

          Date of Hearing:   April 10, 2012

                       ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
                                 Paul J. Cook, Chair
              AB 2475 (Committee on Veterans Affairs) - As Introduced:  
                                  February 24, 2012
           
          SUBJECT  :   Military service protections: real and personal 
          property rights

           SUMMARY  :   Expands the time during which foreclosures on the 
          homes of military members are prohibited.  Specifically,  this 
          bill  :  

             1.   Prohibits any sale, foreclosure, or seizure of real or 
               personal property subject to a mortgage, or other security, 
               for nonpayment by the service member owner if made during 
               the period of military service or within nine months 
               thereafter. 

             2.   Court orders and party agreements are exceptions to this 
               provision. 

             3.   Violation of this provision is a misdemeanor.

           EXISTING LAW  provides legal rights, as specified, for service 
          members in regard to court proceedings, interest liabilities, 
          contracts, eviction proceedings, leases, tax and assessments, 
          life insurance policies, and health insurance. 

          Existing federal law, the Servicemembers Civil Relief Act (SCRA) 
          provides for a stay of proceedings and adjustment of obligation 
          in an action filed during, or within 9 months after, a 
          servicemember's period of military service to enforce an 
          obligation on mortgages.  It also prohibits: 

               A sale, foreclosure, or seizure of property for a breach of 
               an obligation described in subsection shall not be valid if 
               made during, or within 9 months after, the period of the 
               servicemember's military service except upon a court order 
               granted before such sale, foreclosure, or seizure with a 
               return made and approved by the court or if made pursuant 
               to an agreement.

          A person who knowingly makes or causes to be made a sale, 








                                                                  AB 2475
                                                                  Page  2

          foreclosure, or seizure of property that is prohibited, or who 
          knowingly attempts to do so, shall be fined as provided in title 
          18, United States Code, or imprisoned for not more than one 
          year, or both.

          Existing California law contains parallel provisions to the 
          SCRA.  Existing California law prohibits any sale, foreclosure, 
          or seizure of real or personal property subject to a mortgage, 
          or other security, for nonpayment by the service member owner if 
          made during the period of military service or within three 
          months thereafter. Court orders and party agreements are 
          exceptions to this provision. Violation of this provision is a 
          misdemeanor.

           FISCAL EFFECT  :   Unknown at this time.

           COMMENTS  :   The passage of the federal Housing and Economic 
          Recovery Act in 2008 made a number of changes to the 
          Servicemembers Civil Relief Act (SCRA). One of the changes was 
          that servicemembers are protected from foreclosure of a home 
          until nine months after return from overseas deployment (changed 
          from 90 days of protection).

          This bill will conform California law to the SCRA.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Mortgage Bankers Association
          California Bankers Association

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    John Spangler / V. A. / (916) 319-3550