HB 108 Summary

• Requires trustees to publish notices of real property foreclosure sales on internet websites for at least 45 days before the sale, with specific qualification standards for websites including free public access and minimum monthly viewership of 5,000 visitors.

• Reduces the required notice period for deed of trust foreclosures from 90 days to 90 days before sale while requiring trustees to include conditions for curing defaults in the notice of default.

• Requires all non-attorney, non-state-agency trustees to obtain a $100,000 surety bond to protect trustors and beneficiaries against fraud or misappropriation, with annual filing requirements with the Department of Commerce, Community, and Economic Development.

• Authorizes trustees to accept bids by telephone, internet, and electronic mail at foreclosure sales while maintaining public auction requirements, and permits trustees to withhold deed delivery for up to 10 days to rescind sales if improprieties are discovered.

• Establishes priorities for distributing foreclosure sale proceeds: first to the foreclosing beneficiary, then to holders of subordinate recorded interests in order of priority, and finally to the trustor or their successor in interest.