Owner-occupant buyers lose post-foreclosure bidding rights; tenants and nonprofits keep them
After a foreclosure sale of a home with one to four units, only tenants and community bidders such as nonprofits keep the right to outbid the buyer; owner-occupant buyers lose it. Officials may seek a penalty of one-third of the home's value from ineligible bidders.
Who it affects
Tenants, nonprofit buyers, owner-occupant buyers and trustees at home foreclosure sales
When
This law takes effect on January 1, 2027. California laws take effect on January 1 of the year after they are signed, unless the law says otherwise.
- : Signed into law
- : This law takes effect
- : Post-sale bidding program ends unless lawmakers extend it
Official text
California AB 1957: Mortgages: foreclosure.
On California Legislative Information. The official text is what counts; read it before you act.
Not legal advice. Plain-English summaries to help you find what changes and when. Not legal advice: read the official text, and ask a lawyer about your situation.