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Homestead: Foreclosures based on a consumer debt are prohibited
Prevents foreclosure on a judgment lien placed on an individual's principal place of residence if the underlying judgment, in turn, was based on a consumer debt.
Major Provisions
1) Forbids the court-ordered sale of a judgment debtor's principal place of residence in order to satisfy a judgment lien if the underlying judgment was based on a consumer debt, other than a debt secured by the debtor’s principal place of residence when it was incurred.
2) Denes "consumer debt" as debt incurred by an individual primarily for personal, family, or household purposes.
3) Excludes from the denition of "consumer debt" any obligations arising out of a) wages or employment benets; b) taxes; c) child support; d) spousal support; e) nes and fees owed to governmental units; f) tort judgments; and g) debts greater than $75,000, both when incurred and at the time the sale of the house is sought, other than student loans, that are currently owed to a nancial institution.
4) Requires a judgment creditor, when applying to a court for sale of a judgment debtor's dwelling, to swear under oath either that the underlying judgment was not for a consumer debt, or if for a consumer debt, which exclusion under 3) that it qualies for.
Assembly 2463 is codied as Code of Civil Procedure Sections 703.150, 704.760 and Section 699.730.
Eective January 1, 2021.
New Laws 2021 27