Bill Text: CA AB1602 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Mortgages and deeds of trust: foreclosure.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2012-04-16 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB1602 Detail]

Download: California-2011-AB1602-Introduced.html

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BILL NUMBER: AB 1602	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members Eng and Feuer
   (Coauthors: Assembly Members Dickinson, Galgiani, and Skinner)

                        FEBRUARY 6, 2012

   An act to add Section 2923.7 to the Civil Code, relating to
mortgages.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1602, as introduced, Eng. Mortgages and deeds of trust:
foreclosure.
   Existing law requires that, upon a breach of an obligation of a
mortgage or transfer of an interest in property, the trustee,
mortgagee, or beneficiary record a notice of default in the office of
the county recorder where the mortgaged or trust property is located
and mail the notice of default to the mortgagor or trustor.
   This bill would prohibit a mortgagee, trustee, beneficiary, or
authorized agent from recording a notice of default unless the
mortgagee, trustee, beneficiary, or authorized agent has made
reasonable and good faith efforts to evaluate the borrower for
available loan modification options to avoid foreclosure. The bill
would authorize a borrower to seek to enjoin a foreclosure and to
recover damages and reasonable attorney's fees in the event that the
mortgagee, trustee, beneficiary, or authorized agent fails to comply
with the bill's requirements.
   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 2923.7 is added to the Civil Code, to read:
   2923.7.  (a) A mortgagee, trustee, beneficiary, or authorized
agent shall not record a notice of default pursuant to Section 2924
unless the mortgagee, trustee, beneficiary, or authorized agent has
made reasonable and good faith efforts to evaluate the borrower for
available loan modification options to avoid foreclosure.
   (b) If the mortgagee, trustee, beneficiary, or authorized agent
fails to comply with this section, a borrower shall have a cause of
action to enjoin the foreclosure and to recover damages and
reasonable attorney's fees.