California Foreclosure Prevention Act Regulations Issued

The California Foreclosure Prevention Act (“CFPA” a.k.a. “SBx2 7/ABx2 7”) becomes effective on June 15, 2009. The CFPA will impose on foreclosures certain owner occupied residential properties an additional 90-day waiting period before a notice of sale may be given.

The CFPA requires that various commissioners issue implementing regulations. Taking the leading oar on behalf of all of the commissioners, the California Corporations Commissioner filed emergency regulations to the CFPA. The updated California Code of Regulations (“CCR”) § 2923.1 et seq. were effective June 1, 2009. Prior Draft Regulations and Emergency Regulations were amended several times to take into account many of the suggestions of UTA and other commentators. The reader should make sure only to refer to the May 21, 2009 version of the Emergency Regulations and not to earlier versions. The Emergency Regulations may be amended before they become final regulations.

Click here to read the regulations

Click here to read UTA’s comments to the heretofore Draft Regulations. UTA’s comments were drafted by UTA Corporate Counsel, Phil Adleson, Esq., Adleson, Hess & Kelly, APC.