California Civil Code 2924.15 – (a) Unless otherwise provided, paragraph (5) of subdivision (a) …
(a) Unless otherwise provided, paragraph (5) of subdivision (a) of Section 2924 and Sections 2923.5, 2923.55, 2923.6, 2923.7, 2924.9, 2924.10, 2924.11, and 2924.18 shall apply only to a first lien mortgage or deed of trust that meets either of the following conditions:
(1) (A) The first lien mortgage or deed of trust is secured by owner-occupied residential real property containing no more than four dwelling units.
Terms Used In California Civil Code 2924.15
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- property: includes property real and personal. See California Civil Code 14
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(B) For purposes of this paragraph, “owner-occupied” means that the property is the principal residence of the borrower and is security for a loan made for personal, family, or household purposes.
(2) The first lien mortgage or deed of trust is secured by residential real property that is occupied by a tenant and that contains no more than four dwelling units and meets all of the conditions described in subparagraph (B) and one of the conditions described in subparagraph (C).
(A) For purposes of this paragraph:
(i) “Applicable lease” means a lease entered pursuant to an arm’s length transaction before, and in effect on, March 4, 2020.
(ii) “Arm’s length transaction” means a lease entered into in good faith and for valuable consideration that reflects the fair market value in the open market between informed and willing parties.
(iii) “Occupied by a tenant” means that the property is the principal residence of a tenant.
(B) To meet the conditions of this paragraph, a first lien mortgage or deed of trust shall have all of the following characteristics:
(i) The property is owned by an individual who owns no more than three residential real properties, each of which contains no more than four dwelling units.
(ii) The property shall have been occupied by a tenant pursuant to an applicable lease.
(iii) A tenant occupying the property shall have been unable to pay rent due to a reduction in income resulting from COVID-19.
(C) For a first lien mortgage or deed of trust to meet the conditions of this paragraph, the borrower shall satisfy either of the following characteristics:
(i) The borrower has been approved in writing for a first lien loan modification or other foreclosure prevention alternative before January 1, 2023.
(ii) The borrower submits a completed application for a first lien loan modification before January 1, 2023, and, as of January 1, 2023, either the mortgage servicer has not yet determined whether the applicant is eligible for a first lien loan modification, or the appeal period for the mortgage servicer’s denial of the application has not yet expired.
(D) Relief shall be available pursuant to subdivision (a) of Section 2924 and Sections 2923.5, 2923.55, 2923.6, 2923.7, 2924.9, 2924.10, 2924.11, and 2924.18 for so long as the property remains occupied by a tenant pursuant to a lease entered into an arm’s length transaction.
(b) This section shall become operative on January 1, 2023.
(Amended (as added by Stats. 2020, Ch. 37, Sec. 12) by Stats. 2021, Ch. 360, Sec. 5. (AB 1584) Effective January 1, 2022. Operative January 1, 2023, by its own provisions.)