SB 479

Bill Subjects

Abstract

Existing law regarding mortgages generally authorizes a beneficiary, trustee, mortgagee, or his or her agent or successor in interest to demand and receive from a trustor, mortgagor, or his or her agent or successor in interest, or any beneficiary under a subordinate deed of trust, or any other person having a subordinate lien or encumbrance of record those reasonable costs and expenses, as allowed, that are actually incurred in enforcing the terms of the obligation from the date of the notice of sale until the property is sold. This authorization includes trustee's or attorney's fees in an amount not exceeding $475 if the unpaid principal sum secured is $150,000 or less, or $410, if the unpaid principal sum secured exceeds $150,000 plus a percentage of the unpaid principal sum secured exceeding $50,000, plus specified increasing additional amounts based on the unpaid principal. This bill would restructure those fee authorization provisions. The bill would authorize fees to be in an amount not exceeding a base amount of $475, if the unpaid principal sum secured is $50,000 or less, would authorize a base amount not exceeding $475 plus 1% of a specified amount if the unpaid principal exceeds $50,000 but not $150,000, and would specify additional amounts for unpaid principal sums exceeding $150,000 as specified. Existing law authorizes, upon the sale of property under a power of sale, the trustee or his or her agent or successor in interest, to demand and receive, in lieu of other specified charges, from a beneficiary, or his or her agent or successor in interest, or to deduct from the proceeds of the sale, those reasonable costs and expenses that are actually incurred in enforcing the terms of the obligation and the trustee's or attorney's fees that are authorized in an amount not to exceed $425 or 1% of the unpaid sum secured, whichever is greater. This bill would increase the above maximum trustee's or attorney's fees from $425 to $475. Existing law limits the amount of trustee's or attorney's fees that may be charged in connection with the enforcement of certain terms of obligation upon default in payment under a mortgage or deed of trust prior to reinstatement of a monetary default, or until the notice of sale is deposited in the mail, or otherwise at any time prior to the decree of foreclosure, to a base amount not to exceed $350 for an unpaid principal balance sum of $150,000 or less, or $300 plus specified additional percentages of unpaid principal sums, if the unpaid principal balance exceeds $150,000. This bill would revise and recast those fee provisions. The bill instead would provide that if the unpaid principal sum secured is $50,000 or less, then the base amount may not exceed $350. The bill would specify that if the unpaid principal sum secured exceeds $50,000, but does not exceed $150,000, then the base amount may not exceed $350, plus certain additional percentages of unpaid principal sums, which would increase by additional amounts on any portion of the unpaid principal sum that exceeds $150,000.