SB 1150 Heads to Governor’s Desk

The California Legislature this week passed and sent to the Governor, SB 1150, relating to successors in interest of borrowers.  The bill is complex, but the basic intent is to extend many of the provisions of the Homeowner’s Bill of Rights (HOBR) to successors in interest of loans for single-family, owner-occupied residences.  If the provisions of the bill apply to the loan in question, servicers may not record notices of default until the requirements of the bill have been satisfied.  The bill does not apply to servicers for lenders which conducted 175 or fewer foreclosures in the preceding calendar year.  Governor Brown will have until September 30 to sign or veto the bill; if signed, it will become effective on January 1, 2017, and sunset on January 20, 2020.