California Passes Law Extending New Protections to Mortgage Borrowers

Governor Newsom signed AB 2424, effective January 1, 2025, which introduces new foreclosure notification and sale requirements for mortgage lenders. Lenders must inform defaulting borrowers about third-party assistance options and provide disclosures before signing mortgages. Foreclosure sales are postponed for 45 days if the property is listed for sale, with further delays if a purchase agreement is received. The law mandates fair market value disclosures and sets a minimum sale price at 67% of that value.