Notice Of Default California Foreclosure
Facing the loss of your home can be a gut-wrenching experience. Receiving the Notice of Default can throw your life into turmoil and leave you uncertain of what, if anything, you can do to stop the foreclosure and save your home. If you are facing foreclosure, its important to understand that you do have options. A foreclosure defense law firm in California can help you explore your options to stop the foreclosure or buy time to get out of default.
Notice Of The Foreclosure In California
Under California law, you’ll get two separate foreclosure notices: a notice of default and a notice of sale.
Notice of Default
To start the foreclosure, the lender or trustee records a notice of default in the county recorder’s office and mails a copy to you within ten business days. The notice of default gives you three months to reinstate the loan . .
Notice of Sale
After three months expires, the lender or trustee then issues and records a notice of sale and mails a copy to you at least 20 days before the sale date. . While the notice of sale may be recorded up to five days before the lapse of the three months, the sale date can’t be earlier than three months and 20 days after the notice of default’s recording date. .
At least 20 days before the sale, the notice of sale must also be:
- posted in a conspicuous place on the property, usually on the front door
- posted in a public place, and
California foreclosure sales happen between the hours of 9 a.m. and 5 p.m. on business days, Monday through Friday. .
Look Out for Legal Changes
In this article, you’ll find details on foreclosure laws in California with citations to statutes so you can learn more. Statutes change, so checking them is always a good idea. How courts and agencies interpret and apply the law can also change. And some rules can even vary within a state. These are just some of the reasons to consult with an attorney if you’re facing a foreclosure.
Notice Of Trustee’s Proposed Sale
Processing Instructions :
Looking At Foreclosure In Three Basic Steps
This part of the foreclosure process begins with a Notice of Intent to Foreclose or Notice of Default, which is referred to as a breach letter or NOI. This letter is delivered from the lender and officially begins the phase known as pre-foreclosure. The NOI is basically a notice in writing that comes from the lender, outlining what a borrower needs to pay and when the payment is due to avoid foreclosure.
Home Retention Programs
At this point, the borrower can elect to avoid foreclosure by taking advantage of home retention programs in the form of long-term loan modifications, forbearance plans, or a short-term repayment option. Short sales can be utilized where the sale of the home is less than the amount owed, or a transfer of title to the lender can be performed, which is called a deed-in-lieu foreclosure.
Never Ignore a Notice of Default
You should never ignore an NOD if you do not want the foreclosure process to continue. While you may not be able to save your property, you may be able to do something to keep a foreclosure from being recorded on your credit report.
Stay in Touch with Your Lender
Always let a lender know early if you have any difficulty making payments. A lenders ability to help a homeowner diminishes after each payment that is missed. Also, remain in your home. Abandoning a property may make it more difficult for you to qualify for any extensions or financial programs meant to help homeowners who fall behind in their payments.
Learn How California Foreclosures Work
Mortgage Relief During the Coronavirus Crisis
While the COVID-19 national emergency continues, homeowners with a federally backed mortgage loan, regardless of delinquency status, who’re experiencing a financial hardship due directly or indirectly to COVID-19, can get a forbearance under the federal Coronavirus Aid, Relief, and Economic Security Act.
Also, California’s COVID-19 Small Landlord and Homeowner Relief Act of 2020, among other things, requires that a mortgage servicer that denies a forbearance request during the “effective time period” give written notice to the borrower setting forth the specific reason or reasons that forbearance was not provided if certain conditions are met. The act defines the “effective time period” as the period between the operational date of the act and, as amended, December 1, 2021.
Homeowners in California who’ve experienced a financial hardship because of the pandemic can get a piece of the $1 billion allocated to the state under the American Rescue Plan Actup to $80,000 per householdfrom the California Mortgage Relief Program. This program uses federal Homeowner Assistance Fund money to help homeowners get caught up on overdue housing payments and avoid foreclosure.
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California Notice Of Trustees Sale Provisions And Requirements
Below are California legal requirements for a Notice of Trustees sale under Deed of Trust and mortgage provisions.
Any person desiring a copy of any notice of default and of any notice of sale under any deed of trust or mortgage with power of sale upon real property or an estate for years therein, as to which deed of trust or mortgage the power of sale cannot be exercised until these notices are given for the time and in the manner provided in Section 2924 may, at any time subsequent to recordation of the deed of trust or mortgage and prior to recordation of notice of default thereunder, cause to be filed for record in the office of the recorder of any county in which any part or parcel of the real property is situated, a duly acknowledged request for a copy of the notice of default and of sale. This request shall be signed and acknowledged by the person making the request, specifying the name and address of the person to whom the notice is to be mailed, shall identify the deed of trust or mortgage by stating the names of the parties thereto, the date of recordation thereof, and the book and page where the deed of trust or mortgage is recorded or the recorder s number, and shall be in substantially the following form:
Upon the filing for record of the request, the recorder shall index in the general index of grantors the names of the trustors recited therein and the names of persons requesting copies.
Curing A Default After A Notice Of Trustees Sale Is Issued
If you are the owner of the home and are in default of the mortgage, you must act quickly after a notice of trustees sale is issued. You only have 5 days after the Notice of Trustees Sale is issued in California to cure the default and prevent the foreclosure sale from taking place.
On the other hand, the bank has a full 21-day period to decide whether or not to redeem the home up until the foreclosure sale. The bank may decide to pay the loan in full.
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How To Stop Foreclosure In California
There are really only two ways to stop a foreclosure: make a big enough payment to bring the loan current or file bankruptcy.
If you can get the cash together to make up for back payments, interest, and other expenses and fees, you can pull your home out of the foreclosure process. You can also stop the foreclosure by filing bankruptcy. Bankruptcy includes a powerful legal tool called the automatic stay. The automatic stay stops any collection actions against you, including repossession, collection lawsuits, and foreclosures. The banks wont be able to touch your home while you go through the bankruptcy process.
Depending on the type of bankruptcy you choose to file, you may be able to catch up your mortgage through your bankruptcy plan payments. Remember that you can step in at any point along the California foreclosure timeline to stop the process, right up until the auction itself. Its not too late to save your home.
If youre struggling with mortgage or other debt, contact us today to speak to one of our experienced California bankruptcy attorneys. Well go over your case for free and explain your legal rights and options for protecting your home.
Judicial Foreclosures In California
California does offer judicial foreclosures, or foreclosures that go through the court system, but theyre rare. Theyre much slower and more expensive than nonjudicial foreclosures. If your home is sold through a judicial foreclosure, you will be liable for the deficiency. Thats the difference between what you owe and what the house sells for at auction. In other words, if you owed the bank $200,000 going into the auction and the house only sold for $180,000, youd be on the hook for the $20,000 difference.
In a judicial foreclosure, you also have the right of redemption. That means you can repurchase your home from whoever bought it at auction. If there was no deficiency, you may repurchase your home for up to 3 months after the sale. If there was a deficiency, you can purchase your home for up to 1 year after the sale. However, if the bank has waived its right to a deficiency judgment, you wont be able to repurchase the home at all. If you do want to redeem your home, youll have to pay the amount the bidder paid at auction plus anything you spent on repairs, insurance, and other expenses, plus interest. In other words, its very difficult to redeem a home even if you qualify.
Speak With A Foreclosure Attorney Today
Our firm is very client friendly, and we take pride in our amazing client services. When you call our firm during business hours, you will always reach someone who is friendly, and ready to learn about your situation. We dont set appointments weeks in advance for you to speak with a foreclosure attorney and get the legal advice you need we get you on the phone with them right away. Of course, we prefer to meet with you in person, but know that most homeowners want answers quickly.
Were going to ask you a series of questions regarding your property and financial standings to get an idea of what options you have available, and work with you at providing reasonable expectations of how we can help. There are no additional notices after the Notice of Trustee Sale before foreclosure in California, so time is running out each day that you wait to contact a foreclosure attorney.
The Definitive Guide To Navigating Your Foreclosure
Is your mortgage company or bank threatening to take your home? If YesHave you taken action to delay or stop your foreclosure? If not, then it is very likely that you may lose your home.
Bottom line? If you want to have the possibility of saving your home or delaying your foreclosure, then know your rights.
In this guide we are going to list out what you can do if you are going to lose your home.
Lets get started.
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The Basics Of Foreclosure On A Deed Of Trust In California
While many Californians have executed Deeds of Trusts on their homes or real estate investments when buying property, few fully understand precisely what they are. There is a vague feeling that they are akin to mortgages and secure loans to purchase property. There is a vague feeling that if one does not pay, somehow the Deed of Trust allows the lender to seize the property. But when pressed, most people do not fully understand a document that is probably the single most powerful document in terms of enforcing rights against them that the law allows.
This article shall briefly review the basics of a Deed of Trust and foreclosure procedure in California. Other states have different laws on their books. The reader is advised to first read the two articles, Real Estate Transactions and Debt Collection before reading further.
What is a Deed of Trust?
When one borrows money, the lender can ask for security for repayment of the loan. That security can comprise assignment of a cars pink slip a pledge of various assets owned by the debtor which are secured by filing what is called a UCC-1 or a pledge of real property. If real property is utilized to secure a loan, it is usually achieved by executing a mortgage or, in California, a Deed of Trust.
A mortgage is a document that allows the creditor, who is unpaid, to proceed to court to force the sale of the property to pay off the debt.
A Deed of Trust allows a similar relief, but without requiring the court process.
Civil Code Section 2924f Notice Of Trustee Sale
As used in this section and Sections 2924g and 2924h, property means real property or a leasehold estate therein, and calendar week means Monday through Saturday, inclusive.
Except as provided in subdivision , before any sale of property can be made under the power of sale contained in any deed of trust or mortgage, or any resale resulting from a rescission for a failure of consideration pursuant to subdivision of Section 2924h, notice of the sale thereof shall be given by posting a written notice of the time of sale and of the street address and the specific place at the street address where the sale will be held, and describing the property to be sold, at least 20 days before the date of sale in one public place in the city where the property is to be sold, if the property is to be sold in a city, or, if not, then in one public place in the judicial district in which the property is to be sold, and publishing a copy once a week for three consecutive calendar weeks.
The notice of sale shall conform to the minimum requirements of Section 6043 of the Government Code and be recorded with the county recorder of the county in which the property or some part thereof is situated at least 20 days prior to the date of sale.
The term newspaper of general circulation, as used in this section, has the same meaning as defined in Article 1 of Chapter 1 of Division 7 of Title 1 of the Government Code.
YOU ARE IN DEFAULT UNDER A
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The Notice Of Trustees Sale
A trustee or beneficiary may begin noticing the date set for the sale of a property on the day following three months after the NOD is recorded.
The trustee prepares an NOTS which contains:
- the trustees name or their agents name, street address and telephone number
- the street address or common designation of the secured property
- the county assessors parcel number of the secured property
- the dollar amount of the debt in default, including reasonably estimated advances for hazard insurance premiums, property taxes due and foreclosure costs and
- a statutory statement informing the owner they are in default.
In general practice, a date down of the trustees sale guarantee issued to the trustee is ordered out from the title company the day before or on the day the title company records the NOTS.
The date down notifies the trustee of any interests recorded on the title to the property after the NOD is recorded. However, the trustee is not required to give notice of the impending trustees sale to any person who recorded an interest in the property after the NOD was recorded.
Publishing The Notice Of Trustees Sale
California law also requires that the lender publish a notice in a local newspaper for three consecutive weeks. The notice should give information about the owners of the property, the property itself, and when the sale will take place. This public notice allows a variety of bidders to get involved on the property, which helps lenders recoup more of the value of the mortgage.
During the 21-day period that the notice is published, bidders have a chance to register for the sale. Theres usually a range of institutions and individuals who bid on properties at Trustees Sales. Some people might be looking to buy a house outright, but many people will be trying to flip the property for more money.
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Watch Out For Foreclosure Scams
Some companies scam homeowners by posting as a foreclosure rescue company. Be aware if you are close to losing your home to foreclosure, you may be contacted by a foreclosure rescue company. These scammers go through public records and contact homeowners who have received notices of foreclosure.
Foreclosure rescue companies are only out to make money. If you have equity built up in your home, they try to con you out of it, or if you have money in the bank, they use their con artist skills to go after it. If you have a good deal of equity in your home, consider yourself a possible target for a mortgage rescue scammer.
Nonjudicial Foreclosures In California
The vast majority of California foreclosures are nonjudicial, meaning the bank does not have to go through a court to foreclose. If your home is sold in a nonjudicial foreclosure, your responsibility ends once the home is sold. You may have to pay fees relating to the sale, but you wont owe any more money on your mortgage even if the home sells for less than you owe. You may, however, still owe a second mortgage that was not used to purchase the house .
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