AB 1957: Mortgages: foreclosure.

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 eligible tenant buyers, 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 instead provide that a trustee’s sale of eligible property, as defined, is not final until the earliest of various time periods. The bill would change the term “eligible tenant buyer” to “eligible tenant bidder,” and would redefine the term “eligible bidder” to remove prospective owner-occupants and to mean an eligible tenant bidder or an eligible community bidder, as defined. The bill would add an additional attribute to the eligible nonprofit corporations portion of “eligible community bidder.” The bill would authorize the persons described above to seek a civil penalty to enforce these provisions, as specified. The bill would make conforming changes.

Sponsors

Sponsors by party (alphabetical): Democratic 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. September 18, 2026Chaptered by Secretary of State - Chapter 279, Statutes of 2026.
2. September 18, 2026Approved by the Governor.
3. August 25, 2026Enrolled and presented to the Governor at 4 p.m.
4. August 19, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 62. Noes 0. Page 6249.).
5. August 17, 2026In Assembly. Concurrence in Senate amendments pending.
6. August 17, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 5496.).
7. August 4, 2026Read second time. Ordered to third reading.
8. August 3, 2026From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
9. August 3, 2026From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR.
10. July 7, 2026Read second time and amended. Re-referred to Com. on APPR.
11. July 7, 2026From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (June 30).
12. June 3, 2026Referred to Com. on JUD.