Monday, January 04, 2010

California Foreclosure Law Review

California Foreclosure Law Review

Due to the recent burst of the so-called housing bubble, and the subsequent economic crisis, foreclosure law in California has recently changed. Here we will focus on the primary method of foreclosure in California—Non judicial. The state of California passed a new law that imposes an additional delay on the filing of a Notice of Trustee Sale. This change applies only to loans originated from January 1, 2003 through December 31, 2007. This new law requires that the lender contact the borrower in default at least 30 days prior to initiating foreclosure proceedings in order to assess the borrower's financial condition and avoid foreclosure, if possible.

Regardless of whether or not your loan falls between the above mentioned dates, there are still certain rules that must be adhered to in a non-judicial foreclosure in California. On day one of this process, the Notice of Default is recorded. Within ten business days the Notice of Default must be mailed and published (when required). The next step required is that within one month the Notice of Default must be mailed to all junior lien holders and other parties. After three months the Notice of Trustee sale date is set. Once the date is set, the Notice of Trustee Sale date needs to be sent out 25 days before the actual sale date. Twenty days prior to the Trustee Sale Date, you may be required to notify the IRS. Next, within ten days from the first publication of the Notice of Sale, the Beneficiary must be sent a request for directions to the property. Fourteen days prior to the sale date, the Notice of Sale must be recorded. Seven days before the sale date, if it is a court action, the seven-day rule may apply before the sale can occur. Finally, five days before the Sale Date, the Right to Reinstate expires, and on the Sale Date, the property is sold at auction to the highest bidder at public auction.

Search for foreclosure homes for sale in the San Fernando Valley.
Source: Default Research Inc.

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