Mortgages: foreclosure.

Removed the requirement that eligible tenant bidders must include an amount equal to 1.2% of the last and highest bid at the trustee's sale in their post-sale bid. This lowered the financial barrier for tenants trying to purchase their foreclosed property.

Added an additional attribute to the eligible nonprofit corporations portion of the 'eligible community bidder' definition, expanding or narrowing which nonprofits qualify (specific attribute not visible in the truncated diff).

Standardized terminology throughout the bill by replacing 'eligible tenant buyer' with 'eligible tenant bidder' to align with the redefined 'eligible bidder' category structure.

Removed the digest language stating the bill's provisions apply 'only to trustee's sales of eligible property, as defined,' suggesting the scope limitation was restructured or removed in the final text.

The bill now amends Civil Code Section 2924f (notice of sale), which was not previously included. This adds extensive requirements for how foreclosure notices must be posted, published, recorded, and what information they must contain.

New fair market value floor: the mortgagee or beneficiary must provide a fair market value estimate at least 10 days before the first scheduled sale date, and the trustee cannot sell the property for less than 67% of that value at the first sale. If unsold, the trustee postpones at least seven days and may then sell to the highest bidder without the floor.

New 45-day postponement right: if a homeowner submits a listing agreement with a California licensed real estate broker at least five business days before the scheduled sale date, the trustee must postpone the sale by an additional 45 days. A similar postponement applies if a fully executed purchase agreement is submitted. Each can be used only once.

Mandatory multilingual summary: for residential property with no more than four dwelling units, a separate document summarizing the notice of sale in English and other languages must be attached to the notice provided to the mortgagor.

Trustees must maintain a website and phone number available 24/7 providing sale date, last and highest bid amount, and trustee address for properties subject to Section 2924m (tenant purchase rights).

The 1.2% premium requirement (an amount equal to 1.2% of the last and highest bid at the trustee's sale that must be included in a bid) is broadened from applying to 'certain eligible tenant bidders' to all 'eligible tenant bidders.'

The term 'eligible tenant buyer' is renamed to 'eligible tenant bidder' throughout the bill.

The definition of 'eligible bidder' is redefined to remove prospective owner-occupants, now meaning only an eligible tenant bidder or an eligible community bidder.

The definition of 'eligible property' is restructured with different criteria depending on whether the bidder is an eligible community bidder (property must contain four or fewer units) versus an eligible tenant bidder (additional requirements including valid certificate of occupancy, no red tag violations, and FMV at or below FHA loan limits for single-unit properties).

The term 'eligible tenant buyer' is renamed to 'eligible tenant bidder' throughout the bill.

A new defined term 'eligible community bidder' is created, encompassing nonprofit associations, eligible nonprofit corporations, LLCs owned by nonprofits, community land trusts, limited-equity housing cooperatives, and public agencies.

Prospective owner-occupants are removed from the definition of 'eligible bidder,' meaning they can no longer submit post-sale bids under this framework.

An additional attribute is added to the eligible nonprofit corporations portion of 'eligible community bidder' (the specific new attribute is in the truncated portion of the diff).

The definition of 'eligible property' is restructured into two paths: if the bidder is an eligible community bidder, the property only needs to be residential with 4 or fewer units under a first lien; if the bidder is an eligible tenant bidder, the property must additionally meet certificate of occupancy and FHA loan limit requirements.

The post-sale bidding protections now apply only to trustee's sales of 'eligible property' as defined, rather than broadly to all 1-4 unit residential properties.

The bill's scope was dramatically reduced. It no longer repeals Civil Code Sections 2924m, 2924o, 2924f, and 2924g, and no longer amends Health and Safety Code Sections 50720.6, 50720.8, and 50720.12. It now only amends Civil Code Sections 2924d, 2924h, and 2924m, and Health and Safety Code Sections 50612 and 50720.2.

The March version would have removed prospective owner-occupants and eligible nonprofit corporations from the definition of 'eligible bidder' at trustee's sales. The May version instead keeps all existing bidder categories and only adds an additional attribute requirement to the eligible nonprofit corporation portion of the definition.

The March version included a provision to move the sunset/repeal date for the anti-bundling and residential sale provisions from January 1, 2031 to January 1, 2027. This change was removed entirely in the May version, so the original 2031 sunset date remains.

The revised bill adds authorization for the Attorney General, county counsel, city attorney, or district attorney to seek a civil penalty to enforce the eligible bidder provisions, which was not present in the March version.

In Health and Safety Code Section 50612, the definition of 'mission-driven nonprofit entity' was revised to list the attributes of an eligible nonprofit corporation inline rather than cross-referencing Civil Code Section 2924m, while maintaining the inclusion of community land trusts as a second category.

New 'eligible property' definition limits the bill's post-sale purchase protections to properties that are: (1) residential real property sold under a first lien deed of trust or mortgage, (2) have a valid certificate of occupancy with no red tag or substandard building code violation, (3) contain four or fewer residential units, and (4) have a fair market value at or below the maximum FHA loan limit for the local metropolitan statistical area. This significantly narrows which foreclosed properties qualify for tenant and owner-occupant purchase rights.

The bill shifted from repealing Sections 2924d, 2924h, and 2924m to amending them in place. Section 2924o is no longer mentioned. This preserves existing statutory structure while modifying specific provisions rather than replacing entire sections.

Eligible bidders who submit bids after the trustee's sale must include an amount equal to 1.2% of the last and highest bid at the trustee's sale, effectively requiring them to pay a premium above the auction price.

New sale finality and perfection rules in Section 2924h: the sale is deemed final upon acceptance of the last and highest bid, and deemed perfected as of 8 a.m. on the sale date if the trustee's deed is recorded within 21 calendar days (or 60 days if an eligible bidder submitted a notice of intent to bid). Automatic rescission for failure of consideration applies if funds are not available.

The sunset date for the prohibition on bundling properties for sale and related residential property sale provisions was moved up from January 1, 2031 to January 1, 2027, shortening the remaining life of those protections by four years.

New criminal penalties added in Section 2924h: willful failure to deliver payment after winning a bid is a misdemeanor punishable by up to $2,500 fine. Bid-fixing or offering consideration not to bid at a trustee's sale carries up to $10,000 fine or one year in county jail, or both.

Section 2924d now includes a new paragraph allowing trustees to deduct additional fees of up to $200 or one-sixth of 1 percent of the unpaid principal sum (whichever is greater) from sale proceeds when an eligible tenant buyer or eligible bidder submits a bid or notice of intent to bid under Section 2924m.