b'Senate Bill 1079Californias New Foreclosure and Post-Foreclosure ProcessbyMichelle A. Mierzwa, Esq.Wright, Finlay & Zak, LLPC alifornias Senate Bill 1079 (the Bill)unless the deed of trust or mortgage providesof the Bill with respect to the post-auction was passed by the Legislature at theotherwise.The Bill prohibits a trustee fromprocess: If a prospective owner-occupant end of August and signed into lawbundling properties for the purpose ofis not the last highest bidder, the bill would by the Governor on September 28, 2020,sale, instead requiring each property to begrant eligible tenant buyers, as defined, despite vigorous industry opposition.Thebid on separately, unless the deed of trustand other eligible bidders, as defined, stated purpose of the Bill was to address therequires otherwise.However, what does thiscertain rights and priorities to make bids perceived problem of large investors buyingreally mean for lenders?In summary, givenon the property after the initial trustee and converting foreclosed properties tothat the prior language already providedsale and potentially to purchase it as the rentals, to the detriment of maintaining ownerthat separate parcels should generally belast and highest bidder, subject to certain occupancy in residential neighborhoods.Thesold separately, this amendment does notrequirements and timelines.What does this amendments are intended to cover onlyappear to do much.The primary differencereally mean for lenders and trustees?residential real property comprised of oneis that the only way that properties can be to four units; so larger residential buildings,bundled for sale together is if the deed ofNew Civil Code section 2924m provides vacant land and commercial propertiestrust requires that they be bundled.Mostthat a trustees sale is not final until certain containing no residential living units areexisting deeds of trust do not require thatpossible outcomes are allowed.For every outside the scope of the amendments.Theproperties be bundled together so they1-4 residential property, if a prospective amended statutes regarding the foreclosurecannot be sold together going forward.Forowner-occupant was the high bidder at process are effective January 1, 2021 andnew loans, few lenders are going to want tothe live auction, the sale becomes final to through January 1, 2026.As discussed furtherobligate themselves at bundling propertiesthe prospective owner-occupant.In the below, the Bill will significantly impact theby requiring it in their new deeds of trust. absence of a prospective owner-occupant 1foreclosure process on covered residentialbeing the high bidder at the foreclosure sale real property. New Post-Auction Bid Processauction, other eligible bidders can submit a for Eligible Bidders non-binding Notice of Intent to Bid within New Bundling Prohibition? 15 calendar days of the foreclosure auction, This portion of the Bill has the potentialthereafter requiring the trustee to wait until As described in the Legislative Counselsto substantially impact the non-judicial5:00 pm on the 45th calendar day following Digest of the Bill: Existing law generallyforeclosure process for lenders where thethe auction to allow for the potential eligible requires that if the property consists of severalpost-auction bid process is triggered.As lots or parcels, they are to be sold separatelydescribed in the Legislative Counsels Digestcontinued on page 11Page 10Winter 2020/2021Points of Interest'