California passed a bill amending state foreclosure laws under the nonjudicial foreclosure process involving a subordinate mortgage. Under the bill, a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent must not conduct or threaten to conduct a nonjudicial foreclosure that involves a subordinate mortgage until the mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent does both of the following:
- Simultaneously with the recording of a notice of default, records or causes to be recorded, in the office of the county recorder of the county that the encumbered property is located, a certification under penalty of perjury that either:
- The mortgage servicer did not engage in any unlawful practice; or
- The mortgage servicer lists all instances when it committed an unlawful practice.
- Simultaneously with the service of a recorded notice of default, sends both of the following documents to the borrower by United States certified mail with return receipt requested to the last known mailing address of the borrower:
- A notice providing that if the borrower believes the mortgage servicer engaged in an unlawful practice or misrepresented its compliance history, the borrower may petition the court for relief before the foreclosure sale.
- A copy of the recorded certification that the mortgage servicer did or did not engage in any unlawful practice.
The bill went into effect June 30, 2025.
Click to view the California AB 130: https://www.tenaco.com/wp-content/uploads/2025/07/CA-AB-130-07-01-25.pdf
