California Wish List to Refine Trustee Requirements

Ronald Roup, Esq.

Led by UTA Legislative Committee Chair Ron Roup, Esq., Roup & Associates, UTA has developed its California Legislative “Wish List” for 2011.  Among the items the Association – represented in Sacramento by its California Lobbyist, Michael Belote, Esq. of California Advocates, will work toward, include:

• The UTA wants to delete the requirement for the substitution of trustee by code to be mailed to “to the trustee then of record” unless there is an existing Notice of Default which has not been rescinded.  Otherwise, the mailing is unnecessary additional time and expense in the foreclosure process.

• Notice of Default:  Add to statutory language of Notice of Default that the contact is “Name of Beneficiary or Mortgagor or Authorized Agent”.

• Postponements of Sale:  UTA believes that , a sale may be postponed for any period of time not to exceed 365 days should be amended to “one year”; and that the trustee shall postpone the sale by mutual agreement of “any beneficiary” should be clarified for trustees with multiple beneficiaries.

• Surplus Notices:  UTA will work to reconcile the language regarding the surplus notices sent out by the trustee and the distributions of surplus funds (Banc of America v. 3 Arch Trustee Services case).

• HOA Notice of Default:  UTA will work to provide a method of service of the HOA Notice of Default and Notice of Election to Sell where the association is unable to serve or subserve the owner by means of CCP 415.10 in cases where a property is vacant, owner deceased, etc.  There is no means for service by publication since there is not lawsuit, so we want to propose an amendment to allow a “Post and Mail” in the event service cannot be ascertained, similar to the service of eviction notices in CCP 1162;

• Amend the Civil Code to broaden the exception for the agent if the purpose of the Small Claims action is to collect unpaid assessments by an HOA.

The Legislative Committee reports to the Board of Directors on legislative issues of importance to the mission of UTA and responsible for submitting its position on proposed legislation to the Board.