STATEMENT TO

[Second Reprint]

ASSEMBLY, No. 5664

with Assembly Floor Amendments

(Proposed by Assemblywoman TIMBERLAKE)

ADOPTED:  DECEMBER 21, 2023

      This floor amendment:

(1)  requires that if a sheriff’s sale is delayed or postponed, or if circumstances occur that require unforeseen advances to protect the borrower or the foreclosed upon residential property in the event of vandalism, weather damage, or other emergency property preservation needs, the upset price may be adjusted to reflect these costs in the latest price;

      (2)  requires notices written by a foreclosing plaintiff regarding the upset price for the sale of a foreclosed upon residential property be compliant with the federal “Fair Debt Collection Practices Act;”

      (3)  requires that a successful bidder who fails to pay the remaining balance within a 90 business day period will be subject to paying a 20 percent deposit in any subsequent foreclosure sale involving the same residential property and the same foreclosing plaintiff and foreclosed upon defendant;

      (4)  allows a foreclosed upon defendant, next of kin of the foreclosed upon defendant, or tenant to have the right of first refusal to purchase the property for the original upset price listed in the notice or for the final starting upset price listed for the sale of the property, whichever is less;

      (5)  requires a bidder who intends to finance the purchase of the foreclosed residential property to be preapproved for a loan amount that matches the original upset price listed in the notice provided by the foreclosing plaintiff or the final starting upset price listed for the sale of the property, whichever is less;

      (6)  requires a tenant and an individual bidder subject to the 84 month requirement to receive homebuyer education and counseling through the United States Department of Housing and Urban Development (HUD); 

      (7)  clarifies title for an individual bidder who is required to reside in the residential property for 84 months but must vacate the property due to foreclosure;

      (8)  states that an individual bidder who fraudulently asserts an exception to the 84 month requirement will be in violation of the “Consumer Fraud Act;”

      (9)  allows a tenant to have up to 90 business days to purchase a foreclosed residential property after successfully bidding for the property;

      (10)      clarifies that a nonprofit community development corporation has an option to purchase the foreclosed upon residential property for the foreclosed upon defendant, next of kin of the foreclosed upon defendant, or tenant to reside in; and

      (11)      makes certain technical changes.