California passed a bill amending state foreclosure laws under the nonjudicial foreclosure process. Under the bill, the state’s “foreclosure prevention alternative” exemption requirement was amended to change the language from “for persons or entities that make and service 7 or fewer loans for the purchase of residential property in a calendar year” to “for persons or entities that service 7 or fewer loans encumbering residential real property located California in a calendar year”. Also, existing law requires the mortgagee, beneficiary, or authorized agent with respect to residential real property containing no more than 4 dwelling units 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. This bill amended that language to read, “existing law requires the mortgagee, beneficiary, or authorized agent with respect to residential real property containing no more than 4 dwelling units to provide to the trustee the fair market value of the property, as defined, at least 10 days prior to the first sale at which a bid may be made.” The bill becomes effective January 1, 2026.

Click to view the California Assembly Bill No. 1521: https://www.tenaco.com/wp-content/uploads/2025/10/CA-AB-1521-10-02-25.pdf