California law now provides homeowner’s with additional weapons to fight against foreclosure.  For more information, contact our attorneys who protect your home immediately at (951) 801-5570.

SB 900, Leno. Mortgages and deeds of trust: foreclosure.

(1) Existing law, until January 1, 2013, requires a mortgagee, trustee, beneficiary, or authorized agent to contact the borrower prior to filing a notice of default to explore options for the borrower to avoid foreclosure, as specified. Existing law requires a notice of default or, in certain circumstances, a notice of sale, to include a declaration stating that the mortgagee, trustee, beneficiary, or authorized agent has contacted the borrower, has tried with due diligence to contact the borrower, or that no contact was required for a specified reason.

The law passed January 1 2013 states that banks have to contact a homeowner and explore any solutions that would prevent a foreclosure from happening. This law also states that a notice of sale should include declaration stating that the bank has contacted or tried to the best of their ability to contact the borrower. It also states that if the borrower was not contacted it should be explained why.

This bill would add mortgage servicers, as defined, to these provisions and would extend the operation of these provisions indefinitely, except that it would delete the requirement with respect to a notice of sale. The bill would, until January 1, 2018, additionally require the borrower, as defined, to be provided with specified information in writing prior to recordation of a notice of default and, in certain circumstances, within 5 business days after recordation. The bill would prohibit a mortgage servicer, mortgagee, trustee, beneficiary, or authorized agent from recording a notice of

default or, until January 1, 2018, recording a notice of sale or conducting a trustee’s sale while a complete first lien loan modification application is pending, under specified conditions. The bill would, until January 1, 2018, establish additional procedures to be followed regarding a first lien loan modification application, the denial of an application, and a borrower’s right to appeal a denial.

This states that a borrower has to be notified in writing of anything going on. It also states that no notices or sales are allowed if a loan modification application is being reviewed. This law states that the bill until January 1, 2018 would establish extra procedures to be done on a loan modification application

(2) Existing law imposes various requirements that must be satisfied prior to exercising a power of sale under a mortgage or deed of trust, including, among other things, recording a notice of default and a notice of sale.The bill would, until January 1, 2018, require a written notice to the borrower after the postponement of a foreclosure sale in order to advise the borrower of any new sale date and time, as specified.The bill would provide that an entity shall not record a notice of default or otherwise initiate the foreclosure process unless it is the holder of the beneficial interest under the deed of trust, the original or substituted trustee, or the designated agent of the holder of the beneficial interest, as specified.

The homeowner should be given a notice of sale before the sale is actually done. Also the bank has to give notice to the homeowner if the sale of their home is postponed and let them know what the new sale date and time are. The bank also has to show proof that they have a reason to foreclosure before beginning the foreclosure process.

The bill would prohibit recordation of a notice of default or a notice of sale or the conduct of a trustee’s sale if a foreclosure prevention alternative has been approved and certain conditions exist and would, until January 1, 2018, require recordation of a rescission of those notices upon execution of a permanent foreclosure prevention alternative. The bill would until January 1, 2018, prohibit the collection of application fees and the collection of late fees while a foreclosure prevention alternative is being considered, if certain criteria are met, and would require a subsequent mortgage servicer to honor any previously approved foreclosure prevention alternative.

The bank cannot continue with a foreclosure or with a sale of some kind if an alternative process has been approved already. No fees of any kind can be collected while an alternative to foreclosure is being looked at and any alternative should be honored by any mortgage servicer.


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