SB 120 revises various protections afforded tenants under existing law (such as laws requiring return of security deposits and prohibitions against cutting off utilities or locking residents out) to require that mortgage lenders and banks honor these protections after a foreclosure sale on the property. The bill also extends state laws governing utility shutoffs to protect tenants in single family homes.

This bill is virtually identical to AB 2586 (Torrico, D-Fremont) which Gov. Schwarzenegger vetoed in 2008.