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Foreclosure Survival Guide
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Foreclosure Survival Guide (1st Edition)
| Topic | State Rule |
|---|---|
| Common type of foreclosure process | Nonjudicial: under power of sale in deed of trust |
| Time to respond | Lender must contact homeowner 30 days before sending notice of default. Homeowner gets a 90-day notice of default and a 21-day notice of sale |
| Reinstatement of loan before sale | Allowed up to five days before the sale date |
| Redemption after sale | None if deficiency judgment is waived or prohibited |
| Special protections for foreclosures involving high-cost mortgages | Cal. Fin. Code § 4973 makes a number of abusive loan practices unlawful. Section 4978 provides remedies that include authority for a judge to reform the loan to comply with the law. These provisions don’t apply to mortgages held by the secondary market (Fannie Mae, Freddie Mac) or to assignees who have no reason to know of the loan origination violations. |
| Special state protections for service members | Cal. Mil. & Vet. Code §§ 400 to 409.13 |
| Deficiency judgments | Not allowed in nonjudicial foreclosures |
| Cash exempted in bankruptcy | Up to about $22,000 under California exemption System 2 |
| Notice to leave after the house is sold | New owner must give former homeowner 3-day notice to quit (leave) and file an unlawful detainer lawsuit to evict. |
| Foreclosure statutes | Cal. Civ. Code §§ 2924 to 2924I |