Last stage Foreclosure questions in CA Trustee sale date Oct. 9, 2012

[Ljadec]

My brother’s CA home is set up for Oct. 9, 2012 trustee sale date.

On phone-Lender agreed this AM to STOP sale if he pays arrears payments ASAP. Said doing this would bring account current/reinstate the loan. Extra foreclosure fees would still be owed and on remaining balance. When I asked for written confirmation of this agreement they said they would not/do not do that.

Wants to SAVE home, not sell it.

Is it necessary to contact Trustee to confirm that sale date is STOPPED?

He is going to take $$$$$$$ to bank and make payment in AM.

Can lender take the payment and NOT stop the sale from going through?

IF that happens is filing Chap 13 only option to STOP sale?

HELP PLEASE…. THXXX

 

[FlyingRon]

Actually, the only way to guarantee that there will be no foreclosure would be to pay off the loan. After a default, they're not obliged to allow partial cures.
Of course, in most cases, a lender would be extremely silly to foreclose anyhow but stranger things have happened.

You will be committing a crime if you use Chapter 13 to stay the foreclosure without actually indending to pursue the bankruptcy. Bankruptcy won't necessarily prevent foreclosure, just temporarily delay it.

 

[justalayman]

In just a quick look, and have not verified it yet, but once source states that up until 5 days before the sale the owner has a right to cure. I don't know if that includes weekends. If it doesn't, then depending of that counts the day of the sale or not, he may not have a right to cure. At best, this would be the absolute last day possible so if he doesn't pay all the necessary costs today, he would lose that right.



I'll have to dig some more but he really should be calling a lawyer, right now, to get a legally dependable opinion. He has no time to spare in the best of scenarios. In the worst, his time to stop the sale it gone.

 

[justalayman]

(e) Reinstatement of a monetary default under the terms of an
obligation secured by a deed of trust, or mortgage may be made at any
time within the period commencing with the date of recordation of
the notice of default until five business days prior to the date of
sale set forth in the initial recorded notice of sale.
In the event the sale does not take place on the date set forth in
the initial recorded notice of sale or a subsequent recorded notice
of sale is required to be given, the right of reinstatement shall be
revived as of the date of recordation of the subsequent notice of
sale, and shall continue from that date until five business days
prior to the date of sale set forth in the subsequently recorded
notice of sale.
In the event the date of sale is postponed on the date of sale set
forth in either an initial or any subsequent notice of sale, or is
postponed on the date declared for sale at an immediately preceding
postponement of sale, and, the postponement is for a period which
exceeds five business days from the date set forth in the notice of
sale, or declared at the time of postponement, then the right of
reinstatement is revived as of the date of postponement and shall
continue from that date until five business days prior to the date of
sale declared at the time of the postponement.

well, it's too late already to cure by paying the late payments and fees. 5 business days before. That would mean the last date allowed by law was Tuesday 2 days ago.

That doesn't mean the bank can't stop the sale if they choose to.


also, if the sale is delayed for any reason, that 5 days prior to the sale also resets to correspond to the new date of sale.


after that, and have not verified though, you can still prevent the sale but that would require payment in full of the defaulted loan.


I would suggest still contacting a lawyer and dragging them down to the bank in the morning to ensure that any proof required they are stopping the sale are provided.