AB 3088 And What It Means To You
On August 31, 2020, Governor Newsom signed AB 3088 into law. The bill, which extends the Homeowner Bill of Rights (HOBR) to certain non-occupied properties, took effect on September 1, 2020. Below is a summary of the changes:
- What is the Homeowner Bill of Rights?
- Previously only applied to 1st liens on owner occupied consumer loans
- Pre-foreclosure contact/due diligence, prohibition on dual tracking, mandatory loss mitigation requirements; private right of action for injunction, damages, fees & costs
- AB 3088 extends HOBR to 1st Liens on non-owner occupied properties, meeting the following conditions:
- The property contains 1-4 units;
- The property is owned by an individual (or group of individuals) who own no more than 3 residential properties, each containing 4 units or less;
- The property is occupied as the tenant’s primary residence pursuant to an Applicable Lease – one in effect on March 4, 2020, in good faith and at fair market value; and
- Mandates specific requirements for handling borrower forbearance requests between 9/1/20 and 4/1/21; and
- The tenant is unable to pay rent due to a reduction in income resulting from COVID.
What’s not in AB 3088:
- No foreclosure moratoria
- No mandatory forbearance
- No eviction moratoria on REO properties (unless you are collecting rents from a tenant)
Rest assured that the S.B.S. Trust Deed Network Team is here to help. If you would like to schedule a Zoom meeting to discuss AB 3088 in more detail, please contact me at (jkennick@sbstrustdeed.com) or Mitch Willet at mwillet@sbstrustdeed.com.
All the best,
Jennifer Kennick
Executive Vice President
S.B.S. Trust Deed Network
818-991-4600
jkennick@sbstrustdeed.com
The information provided in this email should not be relied on as legal advice. Because of the complexity of this bill, we suggest consulting your legal counsel for further guidance.
