21 Jul Will The New California Foreclosure Law Provide Additional Time To The Foreclosure Process?
On July 8, 2008, California enacted SB 1137 to deal with the mortgage crisis. This legislation supposedly was an attempt by the State of California to cut down on the numerous foreclosures arising as a result of real estate loans issued from 1/1/03 to 12/31/07.
The law essentially provides that a Notice of Default (NOD) may not be filed by the trustee or lender until 30 days after contact is made in person or by telephone with a borrower to assess their financial situation and explore options to avoid foreclosure, or until 30 day after satisfying specified due diligence requirements. In other words, 30 more days has just been added to the foreclosure process, maybe even longer.
In a previous blog I had written that the average foreclosure with a bankruptcy took over a year, or about 14 months. Well, with this new law, you can add another month to the process, possibly longer.
So for all debtors debating surrendering their residence, expect to remain in your home for about 15 months after your last mortgage payment. The equity recoupment process via foreclosure and bankruptcy just got better!
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