IMPACT:  Tenants in Foreclosure - Buying at Trustee Sales

A unique California law provides certain "eligible bidders" exclusive rights to bid on one-to-four unit residential buildings in trustee (foreclosure) sales. The way it was before, banks and small groups of flippers were the only bidders when properties were sold at trustee sales. Civil Code § 2924m (SB 1079) enacted in 2021, extends the process to provide "eligible bidders" a broader opportunity to participate. Under the law, tenants and non-profit providers of affordable housing often have the right to prevent bids even after the live auction. This law has some important nuances and it's important to plan ahead. Bidders should have experienced legal and real estate counsel. So, don't wait to contact us!