Bill Text: CA SB931 | 2009-2010 | Regular Session | Amended

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

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Bill Title: Mortgages: deficiency judgments.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2010-09-30 - Chaptered by Secretary of State. Chapter 701, Statutes of 2010. [SB931 Detail]

Download: California-2009-SB931-Amended.html

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BILL NUMBER: SB 931	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 15, 2010

INTRODUCED BY   Senator Ducheny

                        FEBRUARY 2, 2010

   An act to add Section 580e to the Code of Civil Procedure,
relating to mortgages.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 931, as amended, Ducheny. Mortgages: deficiency judgments.
   Existing law authorizes an action for a deficiency judgment for
the balance due upon an obligation for the payment of which a deed of
trust or mortgage with power of sale upon real property or any
interest therein was given as security, as specified. Existing law
prohibits a deficiency judgment in any case in which the real
property or an estate for years therein has been sold by the
mortgagee or trustee under power of sale contained in the mortgage or
deed of trust.
   This bill would prohibit a deficiency judgment under a note
secured by a first deed of trust or first mortgage  for a
dwelling of not more than 4 units  in any case in which the
trustor or mortgagor sells the dwelling for less than the remaining
amount of the indebtedness due at the time of sale with the written
consent of the holder of the first deed of trust or first mortgage.
The bill would provide , with the   that 
written consent of the holder of the first deed of trust or first
mortgage to that sale  , the holder of the first deed of
trust or first mortgage shall be deemed   shall obligate
that holder  to accept the sale proceeds as full payment
 ,  and  to fully discharge  the remaining
amount of the indebtedness on the first deed of trust or first
mortgage  shall be fully discharged  .
   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 580e is added to the Code of Civil Procedure,
to read:
   580e.  No judgment shall be rendered for any deficiency under a
note secured by a first deed of trust or first mortgage  for a
dwelling of not more than four units,  in any case in which the
trustor or mortgagor sells the dwelling for less than the remaining
amount of the indebtedness due at the time of sale with the written
consent of the holder of the first deed of trust or first mortgage.
 With the written consent of the holder of the first deed of
trust or first mortgage to that sale, the holder of the first deed of
trust or first mortgage shall be deemed to accept the sale proceeds
as full payment, and the remaining amount of the indebtedness on the
first deed of trust or first mortgage shall be fully discharged.
  Written consent of the holder of the first deed of
trust or first mortgage to that sale shall obligate that holder to ac
  cept the sale proceeds as full payment and to fully
discharge the remaining amount of the indebtedness on the first deed
of trust or first mortgage.