Under current law, when real property is sold in a foreclosure sale for an amount above the value of the lien on the property, any excess amount (overbid), after paying all junior lienors, is paid to the owner of the property as of the recording of the election to foreclose. The bill requires that any overbid is instead paid to the person liable under the related evidence of debt constituting a mortgage loan or deed of trust .
The bill also adds to the definition of "qualified holder" a private company that originates, insures, guaranties, or purchases loans on behalf of
an entity that holds time-share evidence of debt and deeds of trust a holder of evidence of debt that is secured by a deed of trust encumbering a time share estate with a minimum of $5 million in assets or not less than 1,000 loans.
(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)