Facing Foreclosure? What Does the Bank Have to do Before They Can Sell My Home?
In the past decade, lenders, banks and servicers have engaged in an unprecedented level of misconduct and blatant disregard of the law which has resulted in the biggest real estate market crash since the 1800s. This guide explores the legal requirements that must be followed before a foreclosure.
HOMEOWNER BILL OF RIGHTSAs part of the California Homeowner Bill of Rights (a series of laws which took effect in January 2013 in response to the foreclosure crisis affecting the state), prior to filing a notice of default to commence a nonjudicial sale, the law now requires that a mortgage servicer, beneficiary, or trustee contact the trustor/borrower in person or by phone in order to assess the borrower*s financial situation and discuss options available to the trustor/borrower that may avoid foreclosure. Cal. Civ. Code * 2923.5(a)(2). After this initial contact is made, the mortgage servicer, beneficiary, or trustee must wait 30 days before attempting to record a notice of default. Cal. Civ. Code * 2923.5(a)(1)(A).
The law also prohibits a mortgage servicer, beneficiary, or trustee from recording a notice of default if the trustor/borrower has submitted a completed application for a first lien loan modification until the trustor/borrower has been provided a written determination of your application. Cal. Civ. Code * 2924.18(a)(1).
RECORD NOTICE OF DEFAULTAfter contacting the trustor concerning your financial circumstances in the manner described above, a beneficiary or trustee may record a notice of default in the county where the property is located to begin the process of nonjudicial sale. Cal. Civ. Code * 2924(a)(1). For residential property of no more than four units, the trustee or beneficiary must also provide to the trustor a summary of the notice of default and notice of the sale in English and other languages specified by statute. Cal. Civ. Code * 2923.3.
IF DEFAULT NOT CURED, RECORD NOTICE OF SALEThree months after the notice of default is recorded, the trustee must give at least 20 days notice of the sale of the secured property. Cal. Civ. Code ** 2924(a)(2), 2924f. The notice of sale must be posted conspicuously on the property, posted in a public place in the city where the property is located, and published in newspapers at least 20 days before the date of the sale of the property. Cal. Civ. Code * 2924f.
THE BEST OPTION FOR YOUIf you are facing a foreclosure sale, the attorneys at ANAND LAW can evaluate your situation to determine the best solution for you. Oftentimes, we are successful in preventing foreclosure sales altogether. We have helped homeowners in Los Angeles, Orange, San Bernardino, Riverside, San Diego, San Luis Obispo and Santa Barbara counties. Where homeowners can*t afford to remain in their property, but the lender has still committed wrongdoings, we are often able to secure monetary settlements.
We will evaluate your situation to determine if NEGOTIATION, LITIGATION (in State, Federal or Bankruptcy Court), CHAPTER 13 or CHAPTER 11 bankruptcy, or a combination of the foregoing is the best solution for you.