SB 1323 will not be signed into law. The bill had proposed creating two foreclosure tracks – one for properties with equity and one for properties without equity. For properties with equity, the trustee would have been required to appraise the property, select a real estate agent, list the property for sale and, among other things, pick the best offer. In addition to creating significant exposure for foreclosure trustees including express liability for violations, the “equity sale” process would have added a minimum of an additional 120 days to the foreclosure process. Even more troublesome was that the proposed “equity sale” process would have violated the language in nearly every deed of trust, resulting in significant litigation.
Special thanks to our lobbyist Mike Belote, UTA’s Legislative Committee Chair Michelle Mierzwa, and the entire UTA Legislative Committee for their efforts in defeating SB 1323. In addition, thanks to all of the other industry groups who banded together to create an amazing Coalition Opposition Letter succinctly laying out all the problems with this bill. We couldn’t have done it without everyone’s efforts. Finally, thanks to all the individual members who submitted opposition communications to their legislative representatives. Thank you!