Last week, Mr. J of Alameda County came to our office and showed me a Trustee Sale (Foreclosure Sale Date) dated the following week. I asked Mr. J if he really wanted to keep his house and if he is willing to pay the amount of late payments. He said yes to both my questions so I immediately contacted the lender. After some negotiations, the lender agreed to stop the foreclosure provided the late payments are paid plus costs. Mr. J is happy to get back his home and started to secure the money from his retirement account to pay his late payments. This is an actual case and it illustrates the ability of the borrower to redeem his home by negotiating with the lender to pay all unpaid late payments plus costs.
Question: What is the law in California in redeeming property under foreclosure sale?
Answer: The California Civil Code Sec. 2924 gives the borrower the right to redeem his or her home within 90 days after a notice of default has been registered in the county recorder’s office by paying all late payments due plus cost.
Question: What is the last day a borrower may redeem his home under foreclosure sale?
Answer: A home in foreclosure may be redeemed five (5) days before the date of foreclosure sale.
Question: Should the borrower pay property taxes and insurance during the foreclosure process?
Answer: The borrower should pay the property taxes, insurance and other future payments during the foreclosure process.
Question: What should a homeowner do if he or she receives a Notice of Default?
Answer: It is very important for the homeowner to contact an attorney immediately upon receipt of Notice of Default. Time is of the essence because the lender may sell your property without your understanding of your legal right. You may also lose the right to modify the mortgage, redeem the property by paying all unpaid installments or contest the lender’s actions in court.
Question: How do I know that I received a Notice of Default?
Answer: A Notice of Default is generally mailed as a certified mail. There are lenders that do not send the notice through certified mail. Generally it is printed in bold 14 point type with the wordings “IMPORTANT NOTICE: IF YOUR PROPERTY IS IN FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR PAYMENTS, IT MAY BE SOLD WITHOUT COURT ACTION.” It should state how much is due as of a certain date. If you are late in payments for about 3 to 6 months, a notice of default may be mailed to you. If you have any doubt on what you received you can check with an attorney.
Question: May I contact an attorney based Modification Company about the notice of default?
Answer: An attorney based modification company does not have the ability to immediately act on your legal problem because they will have to consult the matter to their contracted attorney. In a Law Office you can speak face to face directly and immediately to an attorney who can advise you of your options.
Question: Will filing of Chapter 13 bankruptcy stop foreclosure?
Answer: Chapter 13 bankruptcy will temporarily stop foreclosure. Once the debtor is discharged, the lender will proceed with the foreclosure if the debtor is still late on his monthly payments.
Question: Can a homeowner apply for loan modification after a debtor is discharged in Chapter 13 bankruptcy?
Answer: Yes. However, it is better to apply for loan modification before filing Chapter 13 bankruptcy because you have a better chance of getting better terms in modifying your loan. Once you filed for bankruptcy and still you cannot pay your mortgage after your discharge, you have lesser chance of getting the best terms of modification.
Note: This is not a legal advice. You need to talk to an attorney about your case.
Crispin Caday Lozano is an active member of the State Bar of California and his practice is in real estate and immigration law since 1999. He earned his Juris Doctor at Western State University in Fullerton, California. He is also a CPA and a licensed Real Estate Broker. His offices are located at 17057 Bellflower Blvd. Suite 205, Bellflower, CA 90706 and 1290 B Street, Suite 205, Hayward, California 94541 and at 777 N. First St., Suite 333, San Jose, CA 95112. You can contact him at telephone (562) 461-1355 and (510) 538-7188.
Question: What is the law in California in redeeming property under foreclosure sale?
Answer: The California Civil Code Sec. 2924 gives the borrower the right to redeem his or her home within 90 days after a notice of default has been registered in the county recorder’s office by paying all late payments due plus cost.
Question: What is the last day a borrower may redeem his home under foreclosure sale?
Answer: A home in foreclosure may be redeemed five (5) days before the date of foreclosure sale.
Question: Should the borrower pay property taxes and insurance during the foreclosure process?
Answer: The borrower should pay the property taxes, insurance and other future payments during the foreclosure process.
Question: What should a homeowner do if he or she receives a Notice of Default?
Answer: It is very important for the homeowner to contact an attorney immediately upon receipt of Notice of Default. Time is of the essence because the lender may sell your property without your understanding of your legal right. You may also lose the right to modify the mortgage, redeem the property by paying all unpaid installments or contest the lender’s actions in court.
Question: How do I know that I received a Notice of Default?
Answer: A Notice of Default is generally mailed as a certified mail. There are lenders that do not send the notice through certified mail. Generally it is printed in bold 14 point type with the wordings “IMPORTANT NOTICE: IF YOUR PROPERTY IS IN FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR PAYMENTS, IT MAY BE SOLD WITHOUT COURT ACTION.” It should state how much is due as of a certain date. If you are late in payments for about 3 to 6 months, a notice of default may be mailed to you. If you have any doubt on what you received you can check with an attorney.
Question: May I contact an attorney based Modification Company about the notice of default?
Answer: An attorney based modification company does not have the ability to immediately act on your legal problem because they will have to consult the matter to their contracted attorney. In a Law Office you can speak face to face directly and immediately to an attorney who can advise you of your options.
Question: Will filing of Chapter 13 bankruptcy stop foreclosure?
Answer: Chapter 13 bankruptcy will temporarily stop foreclosure. Once the debtor is discharged, the lender will proceed with the foreclosure if the debtor is still late on his monthly payments.
Question: Can a homeowner apply for loan modification after a debtor is discharged in Chapter 13 bankruptcy?
Answer: Yes. However, it is better to apply for loan modification before filing Chapter 13 bankruptcy because you have a better chance of getting better terms in modifying your loan. Once you filed for bankruptcy and still you cannot pay your mortgage after your discharge, you have lesser chance of getting the best terms of modification.
Note: This is not a legal advice. You need to talk to an attorney about your case.
Crispin Caday Lozano is an active member of the State Bar of California and his practice is in real estate and immigration law since 1999. He earned his Juris Doctor at Western State University in Fullerton, California. He is also a CPA and a licensed Real Estate Broker. His offices are located at 17057 Bellflower Blvd. Suite 205, Bellflower, CA 90706 and 1290 B Street, Suite 205, Hayward, California 94541 and at 777 N. First St., Suite 333, San Jose, CA 95112. You can contact him at telephone (562) 461-1355 and (510) 538-7188.
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