Governor Brown — signed three significant foreclosure bills into law

Governor Brown signed three significant foreclosure bills into law:

AB 2610 (Skinner) – Extends the federal 90-day notice protection to all tenants in foreclosed properties, not just bona fide tenants. The bill also enacts the PTFA’s lease protections into state law but places the burden of proof on who qualifies for lease protections on the landlord. The newly enacted law also reforms the eviction process to better ensure that foreclosed tenants can assert their rights in post-foreclosure eviction actions.

SB 1191 (Simitian) – Requires landlords in 1-4 unit properties to disclose a notice of default (foreclosure) to prospective renters. Disclosure must be made in the six most frequently used languages in California. If the landlord fails to make the necessary disclosure, the tenant may ether (1) void the lease and recover all pre-paid rent plus additional damages or (2) elect to remain in the home and deduct one month’s rent from future rent obligations.

AB 1599 (Feuer) – Requires foreclosure notices (notice of default and notice of trustee sale) to include summaries in the six most frequently used languages in California listed in Civil Code 1632. This law will take effect on April 1, 2013 or 90 days after the Department of Consumer Affairs issues the translations, whichever is later.

The text of the bills is linked above.  The tenant bills will take effect on January 1, 2013.

Best,

Magdalena Reyes Bordeaux
Senior Staff Attorney
Public Counsel
mbordeaux@publiccounsel.org

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