COUNTY OF SANTA CRUZ f1ó5'\ OFFICE OF THE COUNTY COUNSEL 701 OCEAN STREET, SUITE 505, SANTA CRUZ, CA 95060-4068 (831) 454-2040 FAX: (831) 454-2115 DANA McRAE, COUNTY COUNSEL RAHN GARCIA, CHIEF DEPUTY Assistants Marie Costa Jane M. Scott Tamyra Rice Shannon M. Sullvan Jason M. Heath Betsy L. Allen Christopher R. Cheleden Jessica C. Espinoza Sharon Carey-Stronck Jordan Sheinbaum Special Counsel Dwight L. Herr July 13,2013 Agenda: August 6, 2013 Board of Supervisors County of Santa Cruz 701 Ocean Street Santa Cruz, CA 95060 Update on the Report Regarding the Role of the County in the Foreclosure Crisis Dear Members of the Board: At the height of the foreclosure crisis, your Board asked this offce whether the County had the authority to adopt a "verification" ordinance fashioned after a Nevada state law passed in response to the national foreclosure crisis. The Nevada law requires that lenders contact their borrowers in person or by telephone to assess the borrower's financial situation and explore options for the borrower to avoid foreclosure. During this contact with the borrower, the Nevada law provides that, if requested, the lender must send the borrower, within five days, a certified copy of the deed of trust or mortgage note securing the debt on the property and each assignment of the deed or note. At that time, we informed your Board that the County did not have the authority to adopt such an ordinance because in 2008 the California legislature added Civil Code section 2923.5 to the statutory foreclosure scheme requiring lenders to attempt to contact borrowers prior to instituting foreclosure proceedings. (This office's earlier letter is attached.) The State of California has, therefore, occupied the field and your Board is preempted from adopting a local foreclosure mediation or verification ordinance. During budget hearings in June of this year, your Board asked this offce to determine whether the law had changed. The law has not changed. In fact, the State legislature recently extended the sunset provision in Civil Code section 2923.5 to January 1, 2018 . (A copy of the statute is attached.) Therefore, the County is stil preempted from adopting a foreclosure mediation or verification ordinance. RECOMMENDED: (very trly yours, ~- S~l;iei~~/Jy QM¿E1:!~~1 County Administrative Offcer 6 i S ("IOIJI iWPDOCS Board Ltr Re Forec!olUre Crim Doa
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COUNTY OF SANTA CRUZf1ó5'\
OFFICE OF THE COUNTY COUNSEL701 OCEAN STREET, SUITE 505, SANTA CRUZ, CA 95060-4068 (831) 454-2040 FAX: (831) 454-2115
DANA McRAE, COUNTY COUNSELRAHN GARCIA, CHIEF DEPUTY
AssistantsMarie Costa
Jane M. ScottTamyra RiceShannon M. Sullvan
Jason M. Heath Betsy L. AllenChristopher R. Cheleden Jessica C. Espinoza
Sharon Carey-StronckJordan Sheinbaum
Special CounselDwight L. Herr
July 13,2013
Agenda: August 6, 2013
Board of SupervisorsCounty of Santa Cruz701 Ocean StreetSanta Cruz, CA 95060
Update on the Report Regarding the Role of the County in the Foreclosure Crisis
Dear Members of the Board:
At the height of the foreclosure crisis, your Board asked this offce whether theCounty had the authority to adopt a "verification" ordinance fashioned after a Nevadastate law passed in response to the national foreclosure crisis. The Nevada law requiresthat lenders contact their borrowers in person or by telephone to assess the borrower'sfinancial situation and explore options for the borrower to avoid foreclosure. During thiscontact with the borrower, the Nevada law provides that, if requested, the lender mustsend the borrower, within five days, a certified copy of the deed of trust or mortgage notesecuring the debt on the property and each assignment of the deed or note.
At that time, we informed your Board that the County did not have the authorityto adopt such an ordinance because in 2008 the California legislature added Civil Codesection 2923.5 to the statutory foreclosure scheme requiring lenders to attempt to contactborrowers prior to instituting foreclosure proceedings. (This office's earlier letter isattached.) The State of California has, therefore, occupied the field and your Board ispreempted from adopting a local foreclosure mediation or verification ordinance.
During budget hearings in June of this year, your Board asked this offce todetermine whether the law had changed. The law has not changed. In fact, the Statelegislature recently extended the sunset provision in Civil Code section 2923.5 to January1, 2018 . (A copy of the statute is attached.) Therefore, the County is stil preemptedfrom adopting a foreclosure mediation or verification ordinance.
RECOMMENDED: (very trly yours, ~-
S~l;iei~~/Jy QM¿E1:!~~1County Administrative Offcer 6 i
S ("IOIJI iWPDOCS Board Ltr Re Forec!olUre Crim Doa
COUNlY OF SANTA CRUZ 0654
OFFICE OF THE COUNlY COUNSEL701 OCEAN STREET, SUITE 505, SANTA CRUZ, CA 95060-4068 (831) 454-2040 FAX: (831) 454-2115
RAHN GARCIA, CHIEF DEPUT
AssistantsMarie Costa Tamyra Rice jason M. Heath Betsy L. Allen jessica C. Espinozajane M. Scott Shannon M. Sullivan Christopher R. Cheleden Sharon Carey-Stronck
Special CounselDwight L. Herr
June 6, 2012
Agenda: June 12,2012
Board of SupervisorsCounty of Santa Cruz70 I Ocean StreetSanta Cruz, CA 95060
Report Regarding the Role of the County in the Foreclosure Crisis
Dear Members of the Board:
This letter responds to your Board's request for a draft "verification"ordinance fashioned after a Nevada state law passed in response to the nationalforeclosure crisis. The Nevada law requires that lenders contact their borrowers inperson or by telephone to assess the borrower's financial situation and exploreoptions for the borrower to avoid foreclosure. During this contact with theborrower, the Nevada law provides that, if requested, the lender must send theborrower within five days, a certified copy of the deed of trust or mortgage notesecuring the debt on the property and each assignment of the deed or note.
As your Board is aware, the California legislature in 2008 added Civil Codesection 2923.5 to the statutory foreclosure scheme requiring lenders to attempt tocontact borrowers prior to instituting foreclosure proceedings. The State ofCalifornia has, therefore, occupied the field and your Board is preempted fromadopting a local foreclosure mediation or verification ordinance. So, rather thanprovide your Board with a local ordinance for your consideration, I have attachedto this letter a proposed amendment to California Civil Code section 2923.5 whichadds provisions similar to those passed by the State of Nevada. In addition, ifenacted, the proposed legislation would be in effect for five years. It is the
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recommendation of this offce that your Board send a letter to our Staterepresentatives encouraging them to allow California Civil Code section 2923.5 toexpire by its own terms on December 31,2012 and then adopt a law similar to theattached foreclosure mediation and verification statute. ~
Very truly yours,
~~~C?=DANA McRA, County Counsel
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THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:0656
~1 SECTION 1. Section 2923.5 of the Civil Code is amended to read:2 (a)(l) A mortgagee, trustee, beneficiary, or authorized agent may not fie a notice of default
3 pursuant to Section 2924 until 30 days after initial contact is made as required by paragraph (2)4 or 30 days after satisfying the due diligence requirements as described in subdivision (g).
5 (2) A mortgagee, beneficiar, or authorized agent shall contact the borrower in person or
6 by telephone in order to assess the borrower's financial situation and explore options for the7 borrower to avoid foreclosure. During the initial contact, the mortgagee, beneficiary, or8 authorized agent shall advise the borrower that he or she has the right to request a subsequent9 meeting and, if requested, the mortgagee, beneficiary, or authorized agent shall schedule the
10 meetin to occur within 14 days.11
12
13
14 The assessment of the borrower's financial situation and discussion of options15 may occur during the first contact, or at the subsequent meeting scheduled for that purose. In16 either case, the borrower shall be provided the toll-free telephone number made available by the17 United States Deparent of Housing and Urban Development (HUD) to find a HUD-certified18 housing counseling agency. Any meeting may occur telephonically.
19 (b) A notice of default filed pursuant to Section 2924 shall include a declaration that the20 mortgagee, beneficiary, or authorized agent has contacted the borrower, has tried with due21 diligence to contact the borrower as required by this section, or that no contact was required22 pursuant to subdivision (h).23 (c) Ifa mortgagee, trustee, beneficiary, or authorized agent had already filed the notice of24 default prior to the enactment of this section and did not subsequently fie a notice of rescission,25 then the mortgagee, trstee, beneficiary, or authorized agent shall, as part of the notice of sale26 fied pursuant to Section 2924f, include a declaration that either:
27 (l) States that the borrower was contacted to assess the borrower's financial situation and to
28 explore options for the borrower to avoid foreclosure.29 (2) Lists the efforts made, if any, to contact the borrower in the event no contact was made.30 (d) A mortgagee's, beneficiary's, or authorized agent's loss mitigation personnel may31 paricipate by telephone during any contact required by this section.
32 (e) For purposes of this section, a "borrower" shall include a mortgagor or trustor.33 (f) A borrower may designate, with consent given in writing, a HUD-certified housing34 counseling agency, attorney, or other advisor to discuss with the mortgagee, beneficiary, or35 authorized agent, on the borrower's behalf, the borrowers financial situation and options for the36 borrower to avoid foreclosure. That contact made at the direction of the borrower shall satisfy the37 contact requirements of paragraph (2) of subdivision (a). Any loan modification or workout plan38 offered at the meeting by the mortgagee, beneficiar, or authorized agent is subject to approval39 by the borrower.40 (g) A notice of default may be fied pursuant to Section 2924 when a mortgagee,41 beneficiary, or authorized agent has not contacted a borrower as required by paragraph (2) of42 subdivision (a) provided that the failure to contact the borrower occurred despite the due43 diligence of the mortgagee, beneficiary, or authorized agent. For purposes ofthis section, "due44 diligence" shall require and mean all of the following:
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THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: 0557
--oõO1 (l) A mortgagee, beneficiary, or authorized agent shall first attempt to contact a borrower
2 by sending a first-class letter that includes the toll-free telephone number made available by3 HI In to find a HUD-certified housing counseling agency.
4 (2)(A) After the letter has been sent, the mortgagee, beneficiary, or authorized agent shall
5 attempt to contact the borrower by telephone at least three times at different hours and on6 different days. Telephone calls shall be made to the primary telephone number on fie.
7 (B) A mortgagee, beneficiar, or authorized agent may attempt to contact a borrower using
8 an automated system to dial borrowers, provided that, if the telephone call is answered, the call is9 connected to a live representative of the mortgagee, beneficiary, or authorized agent.
10 (C) A mortgagee, beneficiar, or authorized agent satisfies the telephone contact11 requirements of this paragraph if it determines, after attempting contact pursuant to this12 paragraph, that the borrower's primary telephone number and secondary telephone number or
13 numbers on fie, if any, have been disconnected.14 (3) If the borrower does not respond within two weeks after the telephone call requirements15 of paragraph (2) have been satisfied, the mortgagee, beneficiary, or authorized agent shall then16 send a certified letter, with retur receipt requested.17 (4) The mortgagee, beneficiary, or authorized agent shall provide a means for the borrower18 to contact it in a timely manner, including a toll-free telephone number that wil provide access19 to a live representative during business hours.20 (5) The mortgagee, beneficiar, or authorized agent has posted a prominent link on the21 homepage of its Internet Web site, if any, to the following information:22 (A) Options that may be available to borrowers who are unable to afford their mortgage23 payments and who wish to avoid foreclosure, and instructions to borrowers advising them on24 steps to take to explore those options.25 (B) A list of financial documents borrowers should collect and be prepared to present to the26 mortgagee, benetìciary, or authorized agent when discussing options for avoiding foreclosure.27 (C) A toll-free telephone number for borrowers who wish to discuss options for avoiding28 foreclosure with their mortgagee, beneficiar, or authorized agent.29 (D) The toll-free telephone number made available by HUD to tìnd a HUD-certified30 housing counseling agency.
31 (h) Subdivisions (a), (c), and (g) shall not apply if any of the following occurs:32 (l) The borrower has surrendered the property as evidenced by either a letter contìrming
33 the surrender or delivery of the keys to the property to the mortgagee, trustee, benetìciary, or34 authorized agent.35 (2) The borrower has contracted with an organization, person, or entity whose primary36 business is advising people who have decided to leave their homes on how to extend the37 foreclosure process and avoid their contractual obligations to mortgagees or benetìciaries.38 (3) A case has been fied by the borrower under Chapter 7, i i, i 2, or i 3 of Title i i of the39 United States Code and the bankptcy court has not entered an order closing or dismissing the40 banptcy case, or granting relief from a stay of foreclosure.41 (i) This section shall apply only to mortgages or deeds of trust recorded from Januar 1,42 2003, to December 31,2007, inclusive, that are secured by owner-occupied residential real43 property containing no more than four dwellng units. For purposes of this subdivision, "oWIer-44 occupied" means that the residence is the principal residence of the borrower as indicated to the45 lender in loan documents.
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0658THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: ~1
1 (j This section shall remain in effect only until January l, ~ and as of that date is2 repealed, unless a later enacted statute, that is enacted before January i, ~~'ø~'~, deletes or
3 extends that date.
§ 2923.5. Notice of default; recording; contact of borrower by..., CA CIVIL § 2923.5
0659
West's Annotated California CodesCivil Code (Refs & Annos)
§ 2923.5. Notice of default; recording; contact of borrower by mortgage
servcer; application to entities desciibed in subd. (b) of Section 2924.18
Effective: January 1, 2013Currentness
,Section operative until Jan. 1,2018. See, also, section added by Stats.20 12, c. 86 (A.B.278), § 5,
operative Jan. 1,2018, and section added by Stats.2012, c. 87 (S.B.900), § 5, operative Jan. 1, 2018.~
(a)(1) A mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent may not record a notice of default pursuant toSection 2924 until both of the following:
(A) Either 30 days after initial contact is made as required by paragraph (2) or 30 days after satisfying the due diligencerequirements as described in subdivision (e).
(B) The mortgage servicer complies with paragraph (1) of subdivision (a) of Section 2924.18, if the borrower has provided acomplete application as defined in subdivision (d) of Section 2924.18.
(2) A mortgage servicer shall contact the borrower in person or by telephone in order to assess the borrower's financial situationand explore options for the borrower to avoid foreclosure. During the initial contact, the mortgage servicer shall advise theborrower that he or she has the right to request a subsequent meeting and, if requested, the mortgage servicer shall schedulethe meeting to occur within 14 days. The assessment of the borrower's financial situation and discussion of options may occurduring the first contact, or at the subsequent meeting scheduled for that purpose. In either case, the borrower shall be providedthe toll-free telephone number made available by the United States Department of Rousing and Urban Development (RUD) tofind a HUD-certified housing counseling agency. Any meeting may occur telephonically.
(b) A notice of default recorded pursuant to Section 2924 shall include a declaration that the mortgage servicer has contactedthe borrower, has tried with due diligence to contact the borrower as required by this section, or that no contact was requiredbecause the individual did not meet the definition of "borrower" pursuant to subdivision (c) of Section 2920.5.
(c) A mortgage servicer's loss mitigation personnel may participate by telephone during any contact required by this section.
. ',~~ext
6)
§ 2923.5. Notice of default; recording; contact of borrower by..., CA CIVIL § 2923.5
0660
(d) A borrower may designate, with consent given in writing, a HUD-certified housing counseling agency, attorney, or otheradvisor to discuss with the mortgage servicer, on the borrower's behalf, the borrower's financial situation and options for the
borrower to avoid foreclosure. That contact made at the direction of the borrower shall satisfy the contact requirements ofparagraph (2) of subdivision (a). Any loan modification or workout plan offered at the meeting by the mortgage servicer issubject to approval by the borrower.
(e) A notice of default may be recorded pursuant to Section 2924 when a'mortgage servicer has not contacted a borrower asrequired by paragraph (2) of subdivision (a) provided that the failure to contact the borrower occurred despite the due diligence
of the mortgage servicer. For purposes of this section, "due diligence" shall require and mean all of the following:
(1) A mortgage servicer shall first attempt to contact a borrower by sending a first-class letter that includes the toll-free telephone
number made available by HUD to find a HUD-certified housing counseling agency.
(2)(A) After the letter has been sent, the mortgage servicer shall attempt to contact the borrower by telephone at least threetimes at different hours and on different days. Telephone calls shall be made to the primary telephone number on fie.
(B) A mortgage servicer may attempt to contact a borrower using an automated system to dial borrowers, provided that, if thetelephone call is answered, the call is connected to a live representative of the mortgage servicer.
(C) A mortgage servicer satisfies the telephone contact requirements ofthis paragraph ifit determines, after attempting contactpursuant to this paragraph, that the borrower's primary telephone number and secondary telephone number or numbers on file,if any, have been disconnected.
(3) If the borrower does not respond within two weeks after the telephone call requirements of paragraph (2) have been satisfied,the mortgage servicer shall then send a certified letter, with return receipt requested.
(4) The mortgage servicer shall provide a means for the borrower to contact it in a timely manner, including a toll-free telephonenumber that will provide access to a live representative during business hours.
(5) The mortgage servicer has posted a prominent link on the homepage of its Internet Web site, if any, to the followinginformation:
(A) Options that may be available to borrowers who are unable to afford their mortgage payments and who wish to avoidforeclosure, and instructions to borrowers advising them on steps to take to explore those options.
(B) A list of financial documents borrowers should collect and be prepared to present to the mortgage servicer when discussing
options for avoiding foreclosure.
(C) A toll-free telephone number for borrowers who wish to discuss options for avoiding foreclosure with their mortgageservicer.
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§ 2923.5. Notice of default; recording; contact of borrower by..., CA CIVIL § 2923.5
Ofi61
(D) The toll-free telephone number made available by HUD to find a HUD-certified housing counseling agency.
(f) This section shall apply only to mortgages or deeds of trust described in Section 2924.15.
(g) This section shall apply only to entities described in subdivision (b) of Section 2924.18.
(h) This section shall remain in effect only until January 1,2018, and as of that date is repealed, unless a later enacted statute,that is enacted before January 1,2018, deletes or extends that date.
Credits
(Added by Stats.2008, c. 69 (S.B.1137), § 2, eff. July 8, 2008, operative Sept. 6, 2008. Amended by Stats.2009, c. 43 (S.B.306),§ i; Stats.2012, c. 86 (AB.278), § 4; Stats.2012, c. 87 (S.B.900), § 4.)
Editors' Notes
VALIDITY
This section has been held preempted in the case of Rodriguez v. iP Morgan Chase & Co., S.D.CaI.2011, 809 FSupp.2d 1291.
REPEAL
.:For repeal of this section, see its terms.;:
LA W REVIEW AND JOURNAL COMMENT ARIES
Does opportunity knock? The California Foreclosure Prevention Act of2009. Michael F. Hearn, 41 McGeorge L. Rev. 511
(20 I 0).The mortgage foreclosure crisis: Can we talk? Robert A. Merring, 52 Orange County Law. 9 (Jan. 2010).The pitfalls of Senate Bill 1137's foreclosure prevention rules. Chauncey M. Swalwell and Brent D. I1oulian, 31 L.A Law.16 (Jan. 2009).
Rights in foreclosure: To protect homeowners facing foreclosure, the National Mortgage Settement and Homeowner's Billof Rights impose new standards on mortgage servicers. Lois M. Jacobs and Heather E. Stem, 35 L.A Law. 24 (Jan. 2013).Stemming the subprime crisis: The North Carolina Foreclosure Prevention Project. Michael Miller, 20 Stan. L. & Poly Rev.213 (2009).
Stemming the tide of foreclosures--Recent developments in mortgage foreclosure legislation. Benjamin A Nix, 51 OrangeCounty Law. 8 (Aug. 2009).
LIBRARY REFERENCES
2012 Main Volume
Mortgages 1Jpy;J24.
Westlaw Topic No. 266.c.J.S. Mortgages §§ 726, 732 to 736.
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§ 2923.5. Notice of default; recording; contact of borrower by..., CA CIVIL § 2923.5
0662RESEARCH REFERENCES
ALR Library
13 ALR, Federal 2nd Series 161, Preemption Issues Arising Under Home Owners' Loan Act of 1933,12 U.S.c.A. §§ 1461et Seq.
Encyclopedias
123 Am. Jur. Proof of Facts 3d 417, Proof of Wrongful Mortgage Foreclosure.
CA Jur. 3d Deeds of Trust § 269, Prior Notification and Consultation for Certain Loans.CA Jur. 3d Real Estate--Selected Topics § 1339, Liability to Client.CaL. Civ. Prac. Real Property Litigation § 4:96, Notice of Default.
CaL. Civ. Prac. Real Property Litigation § 4:98, Notice of Sale.
CJS Mortgages § 659, Waiver of Default.
Forms
West's California Code Forms, Civil § 2924 Form 1, Notice of Default--Under Mortgage.
West's California Code Forms, Civil § 2924F Form i, Notice of Sale--Under Mortgage.West's California Code Forms, Civil § 2923.5 Form 1, Declaration by Mortgagee Re Contact With Borrower--Notice ofDefault.
West's California Code Forms, Civil § 2923.5 Form 2, Declaration by Mortgagee Re Contact With Borrower--Notice of Sale.
Treatises and Practice Aids
Rutter, CaL. Practice Guide: Real Prop. Transactions Ch. 6-1, i. Real Property Foreclosures and Antideficiency Laws.
52 Causes of Action 2d 119, Cause of Action in Tort for Wrongful Foreclosure of Residential Mortgage.
Miller and Starr California Real Estate § 36:1, Applicable Theories of Liability.
Miller and Starr California Real Estate § 10:181, Notice of Default--In General.
Miller and Starr California Real Estate § 10:182, Form and Contents.Miller and Starr California Real Estate § 10:210, Attack on Validity of the Sale.Miller and Starr California Real Estate § 10:212, Requirement of Tender.
Miller and Starr California Real Estate § 10:221, Comparison With Nonjudicial Foreclosure.Miller and Starr California Real Estate § 10: 181.1 0, Prior Notification and Consultation for Residential Loans OriginatedBetween January 1,2003 and December 31, 2007.Miller and Starr California Real Estate § 10: 181.20, Prior Notification, Consultation and Modification Requirements for
Owner-Occupied First Lien Mortgage Loans Effective January 1,2013.19 NO. 1 Miller & Starr, California Real Estate Newsalert 1, The Perata Foreclosure Bill (SB 1137): New Rights forDefaulting Borrowers and Tenants; New Complications for Foreclosing Lenders.19 NO.4 Miller & Starr, California Real Estate Newsalert i 0, Deeds of Trust.20 NO.4 Miller & Starr, California Real Estate Newsalert 6, Deeds of Trust.
21 NO.1 Miller & Starr, California Real Estate Newsalert 9, Deeds of Trust.
21 NO.3 Miler & Starr, California Real Estate Newsalert 10, Deeds of Trust.
22 NO.6 Miller & Starr, California Real Estate Newsalert 11, Deeds of Trust.
22 NO. 1 Miller & Starr, California Real Estate Newsalert 11, Deeds of Trust.22 NO.4 Miller & Starr, California Real Estate Newsalert 29, Deeds of Trust.
23 NO.1 Miller & Starr, California Real Estate Newsalert 9, Deeds of Trust.
Residential Mortgage Lending: State Regulation Manual- West California § 2: 19, Foreclosure.4 Witkin, California Summary 10th Security Transactions in Real Property § 145, in General.4 Witkin, California Summary 10th Security Transactions in Real Property § 150, Content and Time of Notice.
Î\J;:;,t
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§ 2923.5. Notice of default; recording; contact of borrower by..., CA CIVIL § 2923.5
4 Witkin, California Summary 10th Security Transactions in Real Property § 212, in General. 0663
Notes of Decisions (68)
West's Ann. CaL. Civ. Code § 2923.5, CA CIVIL § 2923.5
Current with urgency legislation through Ch. i 0 of 20 13 Reg.Sess.
Comments:I am confused by the County Counsel's response. It does not address the issue that I brought before the Boardlast month. I also spoke to Dana McCrae personally and explain the affidavit of authority and Joy Hinz broughta copy to the cousel's office. Please do not vote on this cross purpose item until the Counsel rules on theAffidavit. I am concerned citizen that is deeply concerned with th e corrption of county records and thetremendous financial loss the county has experienced due to loss of transfer funds and MERS.
1
(0/
Alicia Murilo
From:Sent:To:Subject:
cbd [email protected], August 04, 2013 9:57 PMCBD BOSMAILAgenda Comments
Meeting Date: 8/6/2013 Item Number: 61
Name: Joy Hinz Email: ~~!X!.peçl.ilgy.Yithisiy(a)eaithhnk.net
Address: 444 Whispering Pines Dr.Scotts Valley, CA 95066
Phone: 408-828-1066
Comments:The County Counsel did not investigate the question that the Supervisors voted on June 24th. The discussionduring the Budget Hearing was regarding an "Affidavit of Authority" that the County Recorder would give to anentity attempting to file papers. The discussion was NOT about revisiting the "verification ordinance" that hadbeen pre-empted by the Homeowners Bill of Rights. Please remand this investigation back to the CountyCounsel requesting them to investigate the correct question OR, better yet, vote to recommend that ourRecorder consider using the Aftdavitjust as John O'Brien, the County Recorder of Essex County, MA has beendoing for the past 2-3 years with dramatically positive results. Please DO NOT vote to accept this faulty reportwhich does not answer the question the Supervisors requested.
Sunday, August 04, 2013 9:57 PMCBO BOSMAILAgenda Comments
Meeting Date: 8/6/2013 Item Number: 61
Name: Joy Hinz Email: ~qnneçling~yit1':D.2y@eaithliak:Dyl
Address : 444 Whispering Pines Dr.Scotts Valley, CA 95066
Phone: 408-828-1066
Comments:The County Counsel did not investigate the question that the Supervisors voted on June 24th. The discussionduring the Budget Hearing was regarding an "Aftdavit of Authority" that the County Recorder would give to anentity attempting to fie papers. The discussion was NOT about revisiting the "verification ordinance" that hadbeen pre-empted by the Homeowners Bil of Rights. Please remand this investigation back to the CountyCounsel requesting them to investigate the correct question OR, better yet, vote to recommend that ourRecorder consider using the Affidavit just as John O'Brien, the County Recorder of Essex County, MA has beendoing for the past 2-3 years with dramatically positive results. Please DO NOT vote to accept this faulty reportwhich does not answer the question the Supervisors requested.
Comments:The Affidavit of? Authority is a one page document that requires the person that is requesting the recorder tofile a document to verify under penalty of perjury that they have the authority and all statements are true andcorrect. The recorder is mandated by law to preserve the accuracy of "our" Public Record by verifying underpenalty of perjury that they have the authority to tile said document. + + Robo signing or fraudulent signatureshave corrpted our records. Recorders are precluded from questioning a request for a filing but asking the partyto sign this one page document would put the responsibility of truth on the entity that was requesting the filing.
Comments:The letter from the County Counsel does NOT address the request for investigation from the Supervisors onJune 24th, which asks ourCounty Recorder to require the signing of an"Affidavit of Authority" by any entity filing foreclosure papers inour County.
This has been done for several years by John O'Brien, County Recorder of Essex County, Massachusets. Thispractice has greatly reduced the number of wrongful foreclosur es in that County and had other benefits as well.
Please vote to recommend that our Recorder do the same. And, please DO NOT vote to accept this faulty reportwhich does not answer the question the Supervisors requested.
We need to halt the widespread corruption of our land and property records. This practice would be a way tostart that process.
1
&A
Alicia Murilo
From:Sent:To:Subject:
cbdbosm [email protected], August 05, 2013 7:28 PMCBD BOSMAILAgenda Comments
Meeting Date: 8/6/2013 Item Number: 61
Name: Jeri Bodemar Email: Not Supplied
Address: Not Supplied Phone: Not Supplied
Comments:The County Counsel letter for the August 6 agenda refers to CCC 2923.5 from 2008, without mentioning its update'of July 2012, or the specific Sections of AB900 which directly refer to the concerns we, the Santa Cruz Stop FraudcJTeam, are wanting to bring awareness and action to.
Please refer to these Sections of AB 900: Section 2924.17 and Section 2924(a)(6)
Both Sections are found on page 3 ofthe docu ment below.
http://www . am eri canbar. org/ content/ di:m/ aba/pub 1 ishin g/æte erepQ!j:/2 Qj 2/4 au gust/æ_li chards ru benstein. authch
What these Sections mean in relation to all CA County Recorder's Offices specifically:
A) §2924.17(a). Any document relating to foreclosure recorded by or on behalf of a mortgage serviceI' (ie: notice ofnotice of sale, assignment of a deed of trust, substitution of trustee), or any document filed in court relating to foredrequired to be accurate, complete and supported by competent and reliable evidence
B) Before any entity can initiate a foreclosure by filing a notice of default or take any foreclosure-related action (ie:notice of sale, assignment of a deed of trust, substitution of trustee, or any declaration in court):
1. §2924.l7(b). The entity must review competent and reliable evidence that substantiates: a) borrowers default b) ITservicers right (stan ding) to foreclose in order to collect on that specific defaulted debt
2. §2924(a)(6) The entity must demonstrate it is either: a) the beneficiary b) the original trustee c) the substituted trusubstitution was authorized by the true beneficiary d) the agent designated by the true beneficiary -- an agent may acwithin the scope of authority designated by the true beneficiary.
We want to see all Sections of AB900 implemented and enforced in this County, and all other California counties, aispecifically these two Sections that could be addressed powerfully & effectively by requiring an Affidavit of Authorany entity wanting to file foreclosure-related documents.
Please strongly consider recommending this practice for our County Recorder, and using your positions to influenceCounties to do likewise.
