AB 2463

Prevents judgment creditors from foreclosing on homes for an unsecured consumer debt. Low-income homeowners around California are being sued by creditors for small credit card debts, then finding themselves threatened with foreclosure and loss of their homes. Existing law allows judgment creditors to use foreclosure as a debt collection option, even if the debt is for just a few thousand or even a few hundred dollars. Until recently, few debt collectors pursued this draconian tactic. But now, with debts and financial insecurity mounting, it is spreading. AB 2463 prevents foreclosure and keeps people in their homes.