Has the Lender properly followed the California statutory foreclosure procedure?
“If not, you may have the right to sue the lender and prevent the foreclosure sale” -Joe Information about California Civil Code Section 2924: The vast majority of foreclosures in California are non-judicial and are contractually based on the “power of sale” clause. While a lender could file a lawsuit to foreclose on your property, the time and cost of litigation is a deterrent. The procedure for non-judicial foreclosure is detailed in the statute. Highlights of the statute are as follows: • Notice of Default (NOD): The lender can begin non-judicial foreclosure by filing this notice at the county recorder’s office as soon as you are in breach of your contractual obligations. You must be given proper notice. There is no minimum number of payments that you have to miss. Lenders typically wait 2 months before filing the NOD. • 90 day countdown: The default is curable during this period and no sale can occur. A bankruptcy during this period will typically freeze or “enjoin “the countdown.
