2022 California Code
Civil Code - CIV
DIVISION 3 - OBLIGATIONS
PART 4 - OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS
TITLE 14 - LIEN
CHAPTER 2 - Mortgage
ARTICLE 1 - Mortgages in General
Section 2924.15.
2924.15. (a) Unless otherwise provided, paragraph (5) of subdivision (a) of Section 2924 and Sections 2923.5, 2923.55, 2923.6, 2923.7, 2924.9, 2924.10, 2924.11, and 2924.18 shall apply only to a first lien mortgage or deed of trust that meets either of the following conditions:
(1) (A) The first lien mortgage or deed of trust is secured by owner-occupied residential real property containing no more than four dwelling units.
(B) For purposes of this paragraph, “owner-occupied” means that the property is the principal residence of the borrower and is security for a loan made for personal, family, or household purposes.
(2) The first lien mortgage or deed of trust is secured by residential real property that is occupied by a tenant and that contains no more than four dwelling units and meets all of the conditions described in subparagraph (B) and one of the conditions described in subparagraph (C).
(A) For purposes of this paragraph:
(i) “Applicable lease” means a lease entered pursuant to an arm’s length transaction before, and in effect on, March 4, 2020.
(ii) “Arm’s length transaction” means a lease entered into in good faith and for valuable consideration that reflects the fair market value in the open market between informed and willing parties.
(iii) “Occupied by a tenant” means that the property is the principal residence of a tenant.
(B) To meet the conditions of this paragraph, a first lien mortgage or deed of trust shall have all of the following characteristics:
(i) The property is owned by an individual who owns no more than three residential real properties, each of which contains no more than four dwelling units.
(ii) The property shall have been occupied by a tenant pursuant to an applicable lease.
(iii) A tenant occupying the property shall have been unable to pay rent due to a reduction in income resulting from COVID-19.
(C) For a first lien mortgage or deed of trust to meet the conditions of this paragraph, the borrower shall satisfy either of the following characteristics:
(i) The borrower has been approved in writing for a first lien loan modification or other foreclosure prevention alternative before January 1, 2023.
(ii) The borrower submits a completed application for a first lien loan modification before January 1, 2023, and, as of January 1, 2023, either the mortgage servicer has not yet determined whether the applicant is eligible for a first lien loan modification, or the appeal period for the mortgage servicer’s denial of the application has not yet expired.
(D) Relief shall be available pursuant to subdivision (a) of Section 2924 and Sections 2923.5, 2923.55, 2923.6, 2923.7, 2924.9, 2924.10, 2924.11, and 2924.18 for so long as the property remains occupied by a tenant pursuant to a lease entered into an arm’s length transaction.
(b) This section shall become operative on January 1, 2023.
(Amended (as added by Stats. 2020, Ch. 37, Sec. 12) by Stats. 2021, Ch. 360, Sec. 5. (AB 1584) Effective January 1, 2022. Operative January 1, 2023, by its own provisions.)
