Summary CA SB 306
http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0301-0350/sb_306_bill_20090717_enrolled.pdf
Synopsis: 1) Allows a person to demand a short-pay demand statement from a beneficiary who has filed a foreclosure action, and 2) clarifies the definition of real property escrow for the purposes of requiring membership in Fidelity Corporation.
· Cosmetic changes to sections 2923.5, 2923.6, and 2924.8 of the California Civil Code
· Section 2943 of the California Civil Code is amended to
o Amend the definition of “payoff demand statement” to stipulate that the period time given should not exceed 30-days from the date of preparation and not less than the lesser of:
§ 10-days from the date of preparation
§ The number of days from preparation until the terms of the note result in a change in the per diem amount
o Short-pay agreement: an agreement in writing in which the beneficiary agrees to release its lien on a property in return for payment of an amount less than the secured obligation.
o An entitled person may request a short-pay demand statement from the beneficiary or his agent (request must be in writing
o A beneficiary/agent must prepare and deliver a short-pay demand statement within 21-days of receipt of the request:
§ A beneficiary may elect not to proceed with the transaction and thus refuse to provide the statement, but must provide a written notice to the person indicating the beneficiary intends to do so (within 21-days of receipt)
o The short-pay demand statement must be a written statement setting forth an amount less than the outstanding debt, together with any terms and conditions under which the beneficiary will execute and deliver a reconveyances of the deed of trust.
§ A person must be given a period to accept or reject the demand statement no greater than 30-days from the date of preparation and no less than the lesser of:
· 10-days from the date of preparation
· The number of days from preparation until the terms of the note result in a change in the per diem amount
§ If the person agrees to the statement and returns it to the beneficiary, the beneficiary will have 4-days to approve it or it automatically becomes effective.
· For the purpose of whether membership in Fidelity Corporation is require, security held or deposited with a person acting as an exchange facilitator is not considered a real property escrow.
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Effective