Cut off dates to reinstate loan before Trustee Sale in California

Asked almost 3 years ago - Ventura, CA

Our home is bound for a Trustee Sale in a California Court on Monday, August 8, 2011.

We have been pursuing a modification with the lender, but it is not complete yet, they say it might take "another 7 days" from today, 7/28/11. On a parallel path, we are trying to raise some money from our friends and family to reinstate the loan, but it is taking a bit of time... (Our financial picture has improved lately, we would have no problem making the mortgage payment, at this time, but we do not have the funds to clear the backlog...)

We would like to know which date would be the last date that we could still reinstate the loan by paying the backlog? Does the lender have to agree to reinstatment? (We are assuming that if the mod comes at the last moment, is the same as lender canceling sale...)

Additional information

May I ask for a bit of clarification?

The sale date is 8/8/11-five “calendar” days would mean that the backlog must be cleared on or before 8/3/11. If the law refers to “business” days, the cut off appears to be on or before 8/1/11. (The distinction might appear trivial, but with the last moment scrambling for $, it could make all the difference in the world.)

After the 5 day cut-off, is it still possible to reinstate by paying the backlog, if the lender agrees?

Thank you.

Attorney answers (5)

  1. Frank Wei-Hong Chen

    Contributor Level 20

    1

    Best Answer
    chosen by asker

    Answered . In California, you have a statutory right under Civil Code section 2924c(a)(1) to reinstate the loan up to five days before the foreclosure sale.

    The information presented here is general in nature and is not intended, nor should be construed, as legal advice.... more
  2. Richard Alan Rodgers

    Contributor Level 16

    Answered . In addition to Attorney Chen's correct answer, I would just clarify that the days referred to in the statute are calander days. If the last day for performance (5 days) falls on a holiday, the date for performance rolls to the next non-holiday say.

    Richard A. Rodgers, Esq.
    (805) 230-2525
    rar@sd-attorneys.com
    www.sdresq.com

    As stated in the AVVO.COM Terms and Conditions of Use, this answer is not intended as legal advice, and no... more
  3. Sean Sullivan Hanley

    Contributor Level 11

    Answered . In addition to the law, which grants you the right to reinstate your loan 5 days before the auction sale date, there is nothing precluding you from notifying the lender of your intention to reinstate the loan, so if there is a day or two discrepancy, the lender may extend the sale date. It would also help to inform them of your changed financial circumstances and that you now have regular income, hence, making future mortgage payments on time should not be a problem.

    Lenders do not want to foreclose on your property as it is costly for them. They would prefer to keep you in the property.

  4. Sean Sullivan Hanley

    Contributor Level 11

    Answered . In addition to the law, which grants you the right to reinstate your loan 5 days before the auction sale date, there is nothing precluding you from notifying the lender of your intention to reinstate the loan, so if there is a day or two discrepancy, the lender may extend the sale date. It would also help to inform them of your changed financial circumstances and that you now have regular income, hence, making future mortgage payments on time should not be a problem.

    Lenders do not want to foreclose on your property as it is costly for them. They would prefer to keep you in the property.

  5. Richard Alan Rodgers

    Contributor Level 16

    Answered . Correction: The five days to reinstate are "business" days.

    Richard A. Rodgers, Esq.
    (805) 230-2525
    rar@sd-attorneys.com
    www.sdresq.com

    As stated in the AVVO.COM Terms and Conditions of Use, this answer is not intended as legal advice, and no... more

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