Residential mortgage loans: foreclosure procedures.

(1) Existing law, until January 1, 2013, requires a 30-day notice, as specified, to be given to the borrower of certain home mortgages, as specified, before a mortgagee, trustee, beneficiary, or authorized agent may file a notice of default. Existing law requires the notice of default to include certain information, as specified. Existing law also requires contact with the borrower, as defined, in order to assess the borrower's financial situation and explore options for the borrower to avoid foreclosure. Existing law authorizes a borrower to designate a HUD-certified housing counseling agency, attorney, or other advisor to discuss with the mortgagee, beneficiary, or authorized agent, on the borrower's behalf, options for the borrower to avoid foreclosure. Under existing law, it is a crime to tear down the notice of sale posted on a property within 72 hours of posting. Existing law, until January 1, 2013, requires a legal owner to maintain vacant residential property acquired through foreclosure. Existing law also authorizes a governmental entity to impose civil fines and penalties for failure to maintain that property of up to $1,000 per day for a violation, after notice and an opportunity to correct the violation is given. This bill would delete the repeal clause for these provisions and thus extend the operation of these provisions indefinitely. Because this bill would change the definition of a crime, it would impose a state-mandated local program. (2) Existing law, until January 1, 2013, requires a tenant or subtenant in possession of a rental housing unit at the time the property is sold in foreclosure to be given 60 days' written notice to quit the property before being removed. This bill would delete the repeal clause for this provision and thus extend the operation of this provision indefinitely. (3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.