Mortgages: foreclosure.

Existing law imposes various requirements to be satisfied before exercising a power of sale under a mortgage or deed of trust, including recording a notice of default, providing a mortgagor or trustor a copy of the recorded notice of default, providing notice of the time and place scheduled for the public auction sale of the real property and other notices related to the sale, determining the fees and expenses that may be paid from the sale, determining who may conduct the sale and act in the sale as an auctioneer for the trustee, determining the time and place where the auction sale may occur, and specifying how bids may be made and accepted at the auction sale. This bill would require a notice be provided by and to specified parties that a third party, such as a family member, HUD-certified housing counselor, or attorney, may record a request to receive copies of any notice of default and notice of sale at specified times in the loan and foreclosure process and that receiving a copy of these documents may allow the third party to assist the borrower in avoiding foreclosure, as specified. This bill would prohibit a foreclosure sale until the expiration of 45 days if the trustee receives, at least 5 business days before the scheduled date of sale, from the mortgagor or trustor a listing agreement for the sale of the property subject to the power of sale, as specified. If a scheduled date of sale has been postponed pursuant to that provision and the trustee receives, at least 5 business days before the scheduled date of sale, from the mortgagor or trustor a copy of a purchase agreement for the sale of the property, the bill would require the trustee to postpone the scheduled date of sale to a date that is at least 45 days after the date on which the purchase agreement was received by the trustee, as specified. This bill would require the mortgagee, beneficiary, or authorized agent to provide to the trustee the fair market value of the property, as defined, at least 10 days prior to the initially scheduled date of sale, and would prohibit the trustee from selling the property at the initial trustee's sale for less than 67% of the amount of that fair market value of the property. If the property remains unsold after the initial trustee's sale, the bill would require the trustee to postpone the sale for at least 7 days, and would authorize the property to be sold thereafter to the highest bidder, as specified.