California 2011-2012 Regular Session Status: Enacted

SB 458 — Mortgages: deficiency judgments.

Last action — Chaptered by Secretary of State. Chapter 82, Statutes of 2011.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 16, 2011. Enacted.

Prognosis

Likely to advance 78% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 5 sponsors

    1 primary, 4 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 5 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Existing law prohibits a deficiency judgment under a note secured by a first deed of trust or first mortgage for a dwelling of not more than 4 units in any case in which the trustor or mortgagor sells the dwelling for less than the remaining amount of the indebtedness due at the time of sale with the written consent of the holder of the first deed of trust or first mortgage. Existing law provides that written consent of the holder of the first deed of trust or first mortgage to that sale shall obligate that holder to accept the sale proceeds as full payment and to fully discharge the remaining amount of the indebtedness on the first deed of trust or first mortgage. Existing law specifies that those provisions would not limit the ability of the holder of the first deed of trust or first mortgage to seek damages and use existing rights and remedies against the trustor or mortgagor or any 3rd party for fraud or waste if the trustor or mortgagor commits either fraud with respect to the sale of, or waste with respect to, the real property that secures that deed of trust or mortgage. Existing law makes these provisions inapplicable if the trustor or mortgagor is a corporation or political subdivision of the state. This bill would expand those provisions to prohibit a deficiency judgment upon a note secured solely by a deed of trust or mortgage for a dwelling of not more than 4 units in any case in which the trustor or mortgagor sells the dwelling for a sale price less than the remaining amount of the indebtedness outstanding at the time of sale, in accordance with the written consent of the holder of the deed of trust or mortgage if the title has been voluntarily transferred to a buyer by grant deed or by other document that has been recorded and the proceeds of the sale are tendered as agreed. The bill would also provide that, in other circumstances, when the note is not secured solely by a deed of trust or mortgage for a dwelling of not more than 4 units, no judgment shall be rendered for any deficiency upon a note secured by a deed of trust or mortgage for a dwelling of not more than 4 units, if the trustor or mortgagor sells the dwelling for a sale price less than the remaining amount of the indebtedness, in accordance with the written consent of the holder of the deed of trust or mortgage. The bill would provide, following the sale, in accordance with the written consent, the voluntary transfer of title to a buyer, as specified, and the tender of the sale proceeds, the rights, remedies, and obligations of any holder, beneficiary, mortgagee, trustor, mortgagor, obligor, obligee, or guarantor of the note, deed of trust, or mortgage, and with respect to any other property that secures the note, shall be treated and determined as if the dwelling had been sold through foreclosure under a power of sale, as specified. The bill would prohibit the holder of a note from requiring the trustor, mortgagor, or maker of the note to pay any additional compensation, aside from the proceeds of the sale, in exchange for the written consent to the sale. The bill would provide that these provisions are inapplicable if the trustor or mortgagor is a corporation, limited liability company, limited partnership, or political subdivision of the state. The provisions would also be inapplicable to any deed of trust, mortgage, or other lien given to secure the payment of bonds or other evidence of indebtedness authorized, or permitted to be issued, by the Commissioner of Corporations, or that is made by a public utility subject to the Public Utilities Act. The bill would provide that any purported waiver of these provisions shall be void and against public policy. This bill would declare that it is to take effect immediately as an urgency statute.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 82, Statutes of 2011.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 11:30 a.m.

  4. In Senate. Ordered to engrossing and enrolling.

  5. Read third time. Urgency clause adopted. Passed. (Ayes 62. Noes 0. Page 2163.) Ordered to the Senate.

  6. Read second time. Ordered to consent calendar.

  7. From committee: Do pass. Ordered to consent calendar. (Ayes 9. Noes 0.) (June 28).

  8. From committee: Do pass and re-refer to Com. on JUD. (Ayes 8. Noes 0.) (June 20). Re-referred to Com. on JUD.

  9. Referred to Coms. on B. & F. and JUD.

  10. In Assembly. Read first time. Held at Desk.

  11. Read third time. Urgency clause adopted. Passed. (Ayes 39. Noes 0. Page 1068.) Ordered to the Assembly.

  12. Ordered to special consent calendar.

  13. Read second time. Ordered to third reading.

  14. Ordered to second reading.

  15. Read third time and amended.

  16. Read second time. Ordered to third reading.

  17. From committee: Do pass. (Ayes 4. Noes 0. Page 642.) (April 12).

  18. From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.

  19. Set for hearing April 12.

  20. Set, second hearing. Hearing canceled at the request of author.

  21. Set for hearing April 5.

  22. Set, first hearing. Hearing canceled at the request of author.

  23. From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.

  24. Set for hearing March 29.

  25. Referred to Com. on JUD.

  26. From printer. May be acted upon on or after March 19.

  27. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Blumenfield · Cosponsor
  • Corbett · Primary
  • Correa · Cosponsor
  • Skinner · Cosponsor
  • Vargas · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 4 co-sponsors · 117 not signed on

Sponsors (1)

  • Corbett

Co-sponsors (4)

  • Blumenfield
  • Correa
  • Skinner
  • Vargas

Not signed on (117)

117 members have not signed on to this bill.

Show all 117 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

SB 458 Corbett Consent Calendar Second Day

Passed 62 Yea · 0 Nay · 18 Other
Party YeaNayPresentNot Voting
Unaffiliated 600017
Republican 1001
Democratic 1000
Total 620018
% of votes cast 78%0%0%23%
How each member voted (80)
Member Party Vote
Gordon — Yea
Halderman — Yea
Butler — Yea
Hagman — Yea
Carter — Yea
Huber — Yea
Fong — Yea
Allen — Yea
Conway — Yea
Cook — Yea
Olsen — Yea
Swanson — Yea
Wagner — Yea
Fuentes — Yea
Portantino — Yea
John A. Pérez — Yea
Mitchell — Yea
Furutani — Not Voting
Garrick — Not Voting
Gatto — Yea
Gorell — Not Voting
Bonilla — Yea
Hall — Not Voting
Fletcher — Not Voting
Harkey — Not Voting
Atkins — Not Voting
Campos — Yea
Huffman — Yea
Jeffries — Yea
Knight — Yea
Beall — Yea
Block — Yea
Cedillo — Not Voting
Chesbro — Yea
Donnelly — Yea
Ma — Not Voting
Mendoza — Not Voting
Miller — Yea
Monning — Yea
Nestande — Yea
Nielsen — Yea
Pan — Yea
Silva — Yea
Skinner — Yea
Solorio — Yea
Torres — Yea
Wieckowski — Yea
Achadjian — Yea
Alejo — Yea
Ammiano — Not Voting
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Hayashi — Yea
Hill — Yea
Hueso — Yea
Lara — Not Voting
Logue — Yea
Mansoor — Yea
Morrell — Yea
Norby — Yea
Perea — Not Voting
Smyth — Not Voting
Valadao — Yea
Williams — Yea
Eng — Yea
Feuer — Yea
Davis — Yea
Dickinson — Yea
Galgiani — Yea
Yamada — Yea
Beth Gaines — Yea
Bill Berryhill — Not Voting
Bonnie Lowenthal — Not Voting
Roger Hernández — Yea
V. Manuel Pérez — Not Voting
Calderon, Lisa Democratic Yea
Grove, Shannon Republican Not Voting
Jones, Brian W. Republican Yea

Official roll call →

Do pass, to Consent Calendar.

Passed 9 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 8001
Republican 1000
Total 9001
% of votes cast 90%0%0%10%
How each member voted (10)
Member Party Vote
Atkins — Yea
Huffman — Not Voting
Monning — Yea
Wieckowski — Yea
Huber — Yea
Wagner — Yea
Feuer — Yea
Dickinson — Yea
Beth Gaines — Yea
Jones, Brian W. Republican Yea

Official roll call →

Do pass and be re-referred to the Committee on Judiciary.

Passed 8 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Democratic 0001
Unaffiliated 8003
Total 8004
% of votes cast 67%0%0%33%
How each member voted (12)
Member Party Vote
Fletcher — Not Voting
Gatto — Yea
Perea — Yea
Achadjian — Yea
Harkey — Not Voting
Lara — Yea
Morrell — Yea
Torres — Yea
Eng — Yea
Fuentes — Yea
Roger Hernández — Not Voting
Calderon, Lisa Democratic Not Voting

Official roll call →

Special Consent #3

Passed 39 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 36001
Republican 1000
Democratic 2000
Total 39001
% of votes cast 98%0%0%3%
How each member voted (40)
Member Party Vote
Yee — Yea
Hancock — Yea
Wyland — Yea
Evans — Yea
Runner — Yea
Lowenthal — Yea
De León — Yea
Negrete McLeod — Yea
Rubio — Yea
Harman — Not Voting
Hernandez — Yea
Huff — Yea
Kehoe — Yea
Leno — Yea
Lieu — Yea
Liu — Yea
Cannella — Yea
Anderson — Yea
Corbett — Yea
Dutton — Yea
Pavley — Yea
Price — Yea
Steinberg — Yea
Vargas — Yea
Wolk — Yea
Alquist — Yea
Blakeslee — Yea
Simitian — Yea
Walters — Yea
Wright — Yea
Emmerson — Yea
Correa — Yea
DeSaulnier — Yea
Fuller — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
La Malfa — Yea
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Yea

Official roll call →

Do pass.

Passed 4 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 4001
Total 4001
% of votes cast 80%0%0%20%
How each member voted (5)
Member Party Vote
Evans — Yea
Harman — Yea
Corbett — Yea
Leno — Yea
Blakeslee — Not Voting

Official roll call →

Subjects

finance housing
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 458 do?
Existing law prohibits a deficiency judgment under a note secured by a first deed of trust or first mortgage for a dwelling of not more than 4 units in any case in which the trustor or mortgagor sells the dwelling for less than the remaining amount of the indebtedness due at the time of sale with the written consent of the holder of the first deed of trust or first mortgage. Existing law provides that written consent of the holder of the first deed of trust or first mortgage to that sale shall obligate that holder to accept the sale proceeds as full payment and to fully discharge the remaining amount of the indebtedness on the first deed of trust or first mortgage. Existing law specifies that those provisions would not limit the ability of the holder of the first deed of trust or first mortgage to seek damages and use existing rights and remedies against the trustor or mortgagor or any 3rd party for fraud or waste if the trustor or mortgagor commits either fraud with respect to the sale of, or waste with respect to, the real property that secures that deed of trust or mortgage. Existing law makes these provisions inapplicable if the trustor or mortgagor is a corporation or political subdivision of the state. This bill would expand those provisions to prohibit a deficiency judgment upon a note secured solely by a deed of trust or mortgage for a dwelling of not more than 4 units in any case in which the trustor or mortgagor sells the dwelling for a sale price less than the remaining amount of the indebtedness outstanding at the time of sale, in accordance with the written consent of the holder of the deed of trust or mortgage if the title has been voluntarily transferred to a buyer by grant deed or by other document that has been recorded and the proceeds of the sale are tendered as agreed. The bill would also provide that, in other circumstances, when the note is not secured solely by a deed of trust or mortgage for a dwelling of not more than 4 units, no judgment shall be rendered for any deficiency upon a note secured by a deed of trust or mortgage for a dwelling of not more than 4 units, if the trustor or mortgagor sells the dwelling for a sale price less than the remaining amount of the indebtedness, in accordance with the written consent of the holder of the deed of trust or mortgage. The bill would provide, following the sale, in accordance with the written consent, the voluntary transfer of title to a buyer, as specified, and the tender of the sale proceeds, the rights, remedies, and obligations of any holder, beneficiary, mortgagee, trustor, mortgagor, obligor, obligee, or guarantor of the note, deed of trust, or mortgage, and with respect to any other property that secures the note, shall be treated and determined as if the dwelling had been sold through foreclosure under a power of sale, as specified. The bill would prohibit the holder of a note from requiring the trustor, mortgagor, or maker of the note to pay any additional compensation, aside from the proceeds of the sale, in exchange for the written consent to the sale. The bill would provide that these provisions are inapplicable if the trustor or mortgagor is a corporation, limited liability company, limited partnership, or political subdivision of the state. The provisions would also be inapplicable to any deed of trust, mortgage, or other lien given to secure the payment of bonds or other evidence of indebtedness authorized, or permitted to be issued, by the Commissioner of Corporations, or that is made by a public utility subject to the Public Utilities Act. The bill would provide that any purported waiver of these provisions shall be void and against public policy. This bill would declare that it is to take effect immediately as an urgency statute.
Who sponsors SB 458?
SB 458 is sponsored by Blumenfield, Corbett, Correa, Skinner, and Vargas.
What is the current status of SB 458?
This bill has been enacted into law. Introduced February 16, 2011. Enacted.
Where can I track SB 458?
Track SB 458 free on One Click Politics — get push/email alerts when it moves.

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