CA Foreclosure Postponement Reasons
In California, foreclosure sales can be postponed for up to one year per CA Civil Code 2924 g (c) (2). The postponement reasons are outlined in 2924 g (c) (1), but the following names are commonly used at the foreclosure auctions.
Mutual Agreement. The most common postponement reason it simply indicates that the homeowner and the lender have agreed to postpone the sale. This may be the result ofa simple call by the homeowner requesting a little more time, or a more formal agreement like forbearance. Many homeowners do not realize when they enter a forbearance agreement that the foreclosure process continues; and if they miss an agreed upon payment, the property can be sold on the next scheduled sale date with no further notice.
Bankruptcy. When a homeowner files for bankruptcy protection, it puts an automatic stay on all debt collection actions, including foreclosure. Note that bankruptcy does not stop foreclosure, as many believe. Instead, it simply delays the sale of the property until the homeowner resolves the debt, or in many cases, the lender gets approval from the bankruptcy court to continue the sale - an order granting motion for relief from stay. The bottom line is that a home is a secured debt, and the lender has the right to take the security (the home) if the homeowner lacks the ability to pay the debt as agreed. Bankruptcy is only an effective tool against foreclosure if the homeowner will have sufficient income to pay their home loan and make up past due amounts once the bankruptcy plan is completed.
Beneficiary's Request. A simple decision by the lender (beneficiary) to postpone the sale. Could be for any reason, including that they simply aren't prepared to take the property to sale, or because they have reason to believe they are about to be paid (a closed escrow for which they have not yet received payment, for example).
Trustee's Discretion. A simple decision by the trustee to postpone the sale. The most typical reason is that they are unable to reach the lender for sale instructions.
Operation of Law. Fairly rare, but used when a court orders the postponement of the sale. The most likely reasons for a court to make such an order would be in cases where there is a plausible allegation of fraud against the lender, or there are questions of material fact around the right of the lender to foreclose.
No matter what the postponement reason, a new notice of trustee sale must be posted and filed if the sale is postponed for more than 365 days.
ForeclosureRadar.com is the only foreclosure service that features Auction Tracking, with daily updates on every foreclosure sale including postponements, cancellations and sales.
Comments
I received a copy of the Trustee's Sale set for July 1, 2009. Now I receive from my lender a letter dated August 21, 2009 saying that the sale had been postponed. I had not received any prior notice that this postponement had occurred. It seems very fishy that they sprung this on me now, since it would make sense that they would've done this sooner. Are there any legal ramifications with their lack of giving proper notice? It seems coincidental a few days after my Homeowners insurance lapsed on the property....
I received a postponement and was working out an approved short sale and they sold my property without notifying me of the second sale date as they did the first sale date.IE no notices or letters.I am less then a week from selling to a cash buyer.Is it legal to not notify me of second sale even though they gave me written approval to close by 9/27?
Each postponement must be announced at the time and location of the scheduled sale, but no other notification of the postponement or subsequent sale is required. As such it would be legal and proper for them to sell a property that had been postponing with NO further notice.
That said, if you have an agreement in writing that they did not honor, you should definitely contact the lender or trustee and ask that the sale be overturned. If they refuse it may be worth showing the agreement to an attorney.
I work with a company that postpones dates and yes it is legal. the same situation occured to a client that was in escrow and the property was sold without a second notice. Its you and your rep's responsibility to make sure that the dates are being postponed while in escrow it is not automatically done. If the property does get auctioned it still possible to rescind (take back) the sale allowing you to close escrow. Hope this was helpful
do you know a company that does postponement. pleae contact me . I am a homeowner and need to do that thanks zoey
Viviana Can you contact me and give me your company info on postponing the trust sale? I'm a realtor helping people with short sales and REOS. My cell is 310-429-4170 call me or email me asap your website, info, etc.
if the home was foreclosed and bank owns it can there be a reversal?
Can there be a reversal on a foreclosed home?
A foreclosure can be reversed up to two years after the auction date. You need to file a federal wrongful foreclosure lawsuit and to gain back the home or settle for monetary damages. You just need to stand up to the so called lender. For more information go to CreateHomeEquity.com.
Remember that the foreclosure laws vary from state to state.
May I use the 3 day trial free without giving you my credit card info beforehand?
do you guys know a good company for principal reduction or postponement of trustee sale??
thanks
ok i got a notice of sale date, the first one. it was for april 23rd. today a asset manager came to my door and left note. so i called the number on the notice of trustee sale and it said it sold on march17th!! wtf? i had gotten a notice recently that i had until april 9 to respond to do a short sale. can they legally do this?? i had no idea of a sooner first sale date..
frustrated..
Check to see if the notice that you received was a Notice of Trustee Sale. You may have been originally contacted by a bank representative from the loss mitigation department if they were talking to you about a short sale. The best thing for you to do is to contact the Trustee. Their contact information will be on Notice of Trustee Sale. Occasionally mistakes are made and you will want to verify the sale and the notices. You may need to ultimately consult with an attorney. There are definite rules regarding the recording, posting and publishing of the foreclosure notices in the non-judicial foreclosure process. If you go to http://www.foreclosureradar.com/foreclosure-guides you can see the requirements for CA, OR, WA, AZ and NV.
I currently rent a condo in Inglewood, California and recently there was a notice posted on my door that the property will be auctioned on May 21st ,2010. Today is April 22, 2010. The owner states that the auction date will be canceled because she is in the loan modification process. Do I pay rent on May 1st, knowing that this property will be possibly be auctioned off during that month? Please know that my desire is not to move. The fact in the matter is, that if I have to move, I will need May’s rent to be apart of my 1st and last month’s rent and security deposit wherever I decide to move to. What’s a single mom of 3 to do in a situation like this?
You still technically owe rent even though there is an active foreclosure on the property. We have heard from renters that withhold rent until the cancellation can be verified. Since you undoubtedly want to maintain a good relationship with your landlord (in case they are telling the truth) ask for some verifying documentation that the sale will be cancelled and the loan brought current. Unfortunately we have seen many landlords that think they have a loan modification but it does not pan out. We have also heard numerous stories where the landlord has lied to the renter. There are HUD approved counsellors (free) that you can find by going to makinghomeaffordable.gov. They may be able to provide you with additional information on your specific situation.
On the notice that was posted to your door you will see a phone number and a TS#. You can call the automated phone number and enter the TS# and get the update on the auction status so that you can confirm the sale information and see for yourself if it has been cancelled.
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