I have a home loan through Bank of America. The trustee sale date was 2/15/13, but it is postponed during trial modification. I don't want to pay the trial modification, and want to list as a short sale in a few months. Because of the trial modification, the trustee sale date is off calendar and there is not sale date at this time. Because I am in default of my trial payments for 2 months now and won't be paying anything because I want to do a short sale, how much notice does the trustee have to give me before they can legally sell my house? Thanks
Real Estate Attorney
You are not entitled to written notice of a new sale date unless 365 days have passed since the notice of trustee sale. Section 2923.6 of the California Civil Codes says that a lender cannot sell property while it is under review for a modification of the first loan. If you default on your trial modification plan, the lender must send you a denial letter stating the reasons why. It cannot sell the property for 30 days from the denial letter. This statute is brand new, and it's not clear that all lenders in California know how it works. Consult an attorney who specializes in foreclosure prevention.
Real Estate Attorney
If the postponed sale date is more than 365 days from the original sale date, the trustee must record and publish and give you a new notice. If less than 365 days, no new notice is required, just a "public declaration" which is usually by the trustee's website or telephone recorded information. [Civ.Code 2924g(d)]
Richard A. Rodgers, Esq.
200 N. Westlake Blvd. Ste 201
Westlake Village, CA 91362
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Generally lenders continue to postpone sale dates while a TPP is in progress. Contact the Trustee to determine the current sale date. If your lender actually cancelled the sale while you we're in the TPP, then they will have to post a new Notice of Trustee Sale giving you 21 days notice.
www.michielawfirm.com I guess I would not feel lawyerly unless I wrote a disclaimer to this answer - after all, that is what we lawyers are trained to do. So here it is. Disclaimer: Trying to provide a complete answer to a brief question without meeting the questioner and without getting all the facts is much like internet dating. Despite what you have been told by the person you have met online (and they tend to always put everything in the best light for themselves), once you meet them face to face you realize how much has been left out. People tend to bend the facts and there is always the other side to the story. So, this answer is about as valuable as the price that was paid for it. It should not be considered legal advice. It is meant as a general overview of how the law could apply to a very broad set of facts that may not have any applicability to the actual circumstances of the person making the question. It is hoped to provide some understanding of the broad field of law that could come into play. No attorney-client relationship has been formed with the questioner and no attorney client relationship was ever anticipated by my response to this question. I would also like to remind you that I am only licensed in the State of California, and the answer provided is based upon my knowledge of California law.