AB 1158: Mortgages.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law provides that a trustee’s sale of property under a power of sale contained in a deed of trust or mortgage on real property containing one to 4 residential units is not final until the earliest of various time periods. Existing law provides specified eligible bidders, defined to include prospective owner-occupants and eligible nonprofit corporations with certain attributes, various rights in connection with those sales, and sets forth procedures for eligible bidders to submit bids after those sales. Existing law authorizes the Attorney General, a county counsel, a city attorney, or a district attorney to bring an action to enforce these provisions as specified.

This bill would remove prospective owner-occupants and eligible nonprofit corporations from the definition of “eligible bidder.” The bill would apply the provisions described above only to trustee’s sales of eligible property, as defined. The bill would require eligible bidders who submit bids pursuant to the procedures described above to include in the bid an amount equal to 1.2% of the last and highest bid at the trustee’s sale. The bill would authorize the last and highest bidder at a trustee’s sale to bring an action against an eligible bidder, as specified. The bill would make conforming changes.

Sponsors

Sponsors by party (alphabetical): Republican 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. February 2, 2026From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2. January 31, 2026Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
3. May 23, 2025In committee: Held under submission.
4. May 7, 2025In committee: Set, first hearing. Referred to APPR. suspense file.
5. April 22, 2025From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (April 22). Re-referred to Com. on APPR.
6. April 22, 2025Re-referred to Com. on JUD.
7. April 21, 2025From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.
8. April 10, 2025Re-referred to Com. on JUD. pursuant to Assembly Rule 96.
9. April 1, 2025Re-referred to Com. on B. & F.
10. March 28, 2025Referred to Coms. on B.&F. and JUD.
11. March 28, 2025From committee chair, with author's amendments: Amend, and re-refer to Com. on B.&F. Read second time and amended.
12. February 21, 2025From printer. May be heard in committee March 23.