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Foreclosure and Forbearance Protections: Homeowner Bill of Rights Expanded to Include Small Landlords
Urgency legislation that took eect immediately on August 31, 2020.
Extension of the Homeowners Bill of Rights (HBOR) to small landlords.
HBOR provides procedural protections and rights to homeowners prior to a foreclosure sale, including requiring mortgage servicers to contact borrowers to explore foreclosure prevention alternatives, and halting the foreclosure process to consider any loan modication application that a borrower submits.
Under this law, HBOR protections would be expanded to a fully tenant-occupied property with one to four units, if the following conditions are met:
1. The landlord owns no more than three such residential real properties, each of which contains no more than four dwelling units.
2. The property for which the landlord is seeking protection is occupied by at least one tenant who has been unable to pay rent due to COVID-19 reduction in income.
3. The property for which the landlord is seeking protection is occupied by at least one tenant who entered into a market-rate lease that was in eect on March 4, 2020. The property must continue to be the principal residence of such a tenant throughout the time the landlord is seeking HBOR protections.
These conditions are meant to ensure that the temporary HBOR expansion applies only to small landlords who are facing a loss of income due to COVID-19 and who continue to house at least one bona de tenant.
The Attorney General has provided a summary explanation of the HBOR. Please see this link for the California Homeowner Bill of Rights.
These expanded protections remain in eect only until January 1, 2023, after which the HBOR will return to the more limited coverage it held prior to the enactment of this law.
These provisions were part of a larger bill Assembly Bill 3088 and are codied as Civil Code Section 2924.15. Eective immediately on August 31, 2020, as urgency legislation.
Foreclosure and Forbearance Protections: Small Landlords and Homeowners
Requires mortgage servicers to follow applicable federal guidance regarding COVID-19 related forbearance. Failing to do so, entitles the borrower to injunctive relief, damages,
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