Existing law generally regulates foreclosures of real property under the power of sale contained in the mortgage or deed of trust. Existing law prohibits a trustee from bundling properties for the purpose of sale, instead requiring each property to bid on separately, unless the deed of trust or mortgage requires otherwise.

Existing law imposes certain restrictions on a trustee’s sale of real property containing one to 4 residential units. Specifically, existing law provides tenants of that property, prospective owner-occupants, and specified nonprofit housing entities 45 days to purchase the property before a sale to any other bidder becomes final, as specified. If one of those specified nonprofit housing entities purchases the property pursuant to that provision, existing law requires the property to be subject to a recorded covenant that requires the property be sold at an affordable housing cost or rented at an affordable rent for lower income households, as specified.

Under existing law, the above-described prohibition on bundling properties for sale and the above-described provisions relating to the sale of those specified residential properties are repealed on January 1, 2031.

This bill would instead repeal these provisions on January 1, 2027. The bill would also make technical conforming changes.