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.
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 with a minimum of $5 million in assets or not less than 1,000 loans.
