Foreclosures Help Information

Posts Tagged ‘California Laws’

New Foreclosure Laws In California

Question: does any one know a company that will help stop foreclosure in California?

my sister has missed her house payment for a few months now because my brother in-law lost his job but she wants to save her house what should she do? or is there a company that can help? she needs to come up on $5,0000 with in 30 days

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Answer: 5k is not very much, a garage sale, maybe sell the boat and she will be all set.

She needs to call the bank, but I doubt she is in foreclosure yet.

New Laws For California Realtors and Real Estate Investors

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Foreclosure Laws In California

Question: california law re: foreclosures?

I am trying to locate the law that says if you get a house in foreclosure that all of the prior liens of record are wiped out by the foreclosure. That is true isnt it? I dont know about tax liens but regular liens are wiped out right? but i cant find the law to back me up. I know it is out there!

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Answer: Typically on a foreclosure, you get the right, title and interest of the lienholder. If the property tax lien has a "superpriority" it may have priority over earlier liens (not sure) but with tax liens, only the junior liens are wiped out. So if the house has a first and second deed of trust and a couple of judgment liens as well as the tax lien, which you have stepped into with the foreclosure, none of the earlier filed liens will be wiped out. The general rule with tax liens (other than property tax liens which have their own rules) is "First in time is first in right".

California Law for Loan Modifications Senate Bill 1137

Home Foreclosure Laws In California

Question: Proceeds from a foreclosure sale in California?

If a lender in the 1st position foreclosed on a home, do they need to pay the excess proceeds (home was sold for more than the 1st loan) to the previous owner and 2nd position holders?

Is there any laws on this?

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Answer: All secondary lienholders must file with the foreclosing lienholder (first mortgage) for compensation. If they can't reach a deal, the case goes to a judge who decides who gets what. At that point, all decisions are final.

The property then goes up for auction at the county courthouse to the highest bidder. If the bank chooses, they can have an agent at the courthouse who will bid on the property in the bank's behalf. If the bank is the highest bidder, they seize the property and put it on the market as a foreclosure sale. When the sale clears escrow, the secondary lienholders get what was agreed upon or ordered by the judge.

CNN on Staying in Your Foreclosed Home