Residential real property: foreclosure sales.
The implementation of AB 2170 is expected to enhance opportunities for individuals and families seeking to purchase homes in the wake of a foreclosure, thereby fostering a more equitable housing market. By mandating that offers from owner-occupants be considered first, the bill aligns with federal initiatives intended to revitalize neighborhoods and facilitate home ownership. Additionally, the prohibition on bundled sales makes it clear that each property must be addressed individually, potentially leading to better outcomes for buyers and communities.
Assembly Bill 2170, sponsored by Assemblymember Grayson, addresses the process surrounding foreclosure sales of residential properties in California. The bill is designed to provide a clearer framework for how properties acquired through foreclosure can be sold. It establishes a priority bidding process for eligible bidders, which includes prospective owner-occupants and qualified nonprofit organizations. Specifically, institutions that foreclose on a significant number of homes must first consider offers from these eligible bidders for the first 30 days after listing the property, aiming to promote home ownership and support community stability.
The reception to AB 2170 has largely been favorable among advocacy groups focused on housing affordability, who view it as a meaningful step toward addressing inequalities in the housing market. Supporters of the bill argue that it sets a necessary precedent for prioritizing families and individuals over investors, thereby enhancing the possibility of sustainable home ownership. However, critiques have emerged regarding the bill's potential enforcement and the adequacy of protections for bidders against possible manipulation by institutional sellers.
Key points of contention surrounding AB 2170 center on the enforcement of its provisions and the clarity of definitions regarding who qualifies as an eligible bidder. While the bill promotes home ownership, critics question whether it sufficiently addresses the realities of the housing market and the possibility of institutions circumventing the bidding process. Moreover, the expansion of perjury statutes related to fraudulent claims by bidders may lead to concerns about the punitive measures associated with the bidding process, raising questions about fairness and equity.