Wednesday, November 3, 2010

How Foreclosures Can Be Postponed in California

understanding CA foreclosures

Foreclosures in California

In California, property foreclosure sales may possibly be postponed according to law and California Civil Code, Section 2924.

by mutual agreementby MUTUAL AGREEMENT - The most common reason for foreclosure postponement is that the financial institution agrees to postpone the sale. 

The financial institution may be responding to homeowner requesting more time to sell the property, or lender may work with the homeowner on a forbearance or loan modification.  However, when homeowner enters a forbearance agreement, the foreclosure procedure continues.  If homeowner misses an agreed payment, the property can be sold on the next scheduled auction sale date with no further notice.

BANKRUPTCY FILING BY DEBTOR  bankrupcty filing

When a homeowner files for bankruptcy, that puts an automatic stay on the foreclosure and on other debts.  However, bankruptcy does not end foreclosure.  It can delay any possible sale of property of debtor until the homeowner resolves the debt.  Lenders will sometimes get approval from the bankruptcy court to move forward with sale, which would be the court order granting relief from stay.  This would be granted by the bankruptcy court if the debt is "secured" by the property, and the lender has right to take the security (the property), and the owner does not make the payments as agreed.  Bankruptcy can be a method to avoid foreclosure if the homeowner will have enough money to pay home loan and make up previous past due amounts after the bankruptcy is completed.

trustee's discretionAccording to TRUSTEE'S DISCRETION

This is if and when the trustee (on the deed of trust as security for promissory note) decides to postpone the sale.  This can happen when the trustee is unable to reach the lender for sale instructions.

by OPERATION OF LAW or court orderby operation of law

Sometimes borrowers file lawsuits against lenders claiming that the foreclosure proceedings are not lawful.  Some courts consider taking jurisdiction and order postponement of the foreclosure and sale.  This can involve allegations of fraud on the part of the lender, or where there are questions about legality of "robo-signing" of foreclosure documents, or whether the lender has legal status and facts to proceed with foreclosure. 

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See my other articles on understanding California foreclosures ... 

Is it Safe to Buy a California Foreclosure?

Avoiding Foreclosure Freeze Worry

Irvine's Pricey Homes Now Set for Trustee Auction Sales after Foreclosure

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See list of homes in foreclosure at Irvine and Orange County communities - click here for link

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Harrison K. Long - Business Solutions and Advisory - REALTOR® and broker associate, Coldwell Banker Residential Brokerage - Phone: 949-854-7747  -  CA DRE 01410855     

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We hope you now have better understanding about foreclosures in California and how they can be postponed. 

Posted via email from Explore OC Homes

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