My property is foreclosed. I would like to know what are the options to get that back. when I spoke with bank they mentioned I have 1.Reinstatement or 2.Redemption. But for redemption I need to know the California laws after foreclosing the property to get it back again on borrows name.
Estate Planning Attorney
I would agree with my colleague above. You most likely received a non-judicial foreclosure thus your options are limited to filing a wrongful foreclosure suit against the lender, loan servicer and trustee, assuming there are valid claims. If the bank told you, your options are reinstatement or redemption, they are seeking payment of the arrearages at the very least and possibly legal fees and foreclosure fees. If you were able to pay this and reinstate your loan, the lender would file a rescission of your sale and record it with the county.
Beware though if you do not file a wrongful foreclosure suit or reinstate, they will move to file an unlawful detainer suit (eviction) against you and these proceed quickly.
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Chapter 7 Bankruptcy Attorney
Your options are very limited. Most foreclosures in California are what are called nonjudicial foreclosures, meaning that the foreclosure takes place without using the court system. With the exception of a foreclosure by an HOA, there is no right of redemption with a nonjudicial foreclosure. You would have to file a lawsuit to attack any defects in the foreclosure process or negotiate with the new owner of the property to get it back.
In the case of a foreclosure lawsuit, the right of redemption would either be 90 days or 1 year depending on whether the lender was seeking a deficiency judgment or not. Judicial foreclosures are not very common in California.
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2 lawyers agree
You need to clarify with a supervisor of the bank. In CA there is no right of redemption, so either the person gave you wrong information, or perhaps there is a special program the bank is participating in that actually gives you more rights than general foreclosure laws in CA. Talk to a supervisor at the bank to clarify.
The foregoing is for informational purposes only and may not be relied on as attorney-client advice.