Legal Question in Civil Litigation in California
Mother died last year with a HUD/FHA insured reverse mortgage on her house. Lender said if I submitted court docs showing estate was in probate, they would get HUD extension for foreclosure. I submitted docs and lender advised HUD approved six month foreclosure delay with further extension possible. . However, a month before expiration of delay period, lender referred loan to foreclosure and trustee filed notice of default. Trustee sale scheduled for later this month. All my protests were fruitless. Lender advised it is their general policy to refer loans to foreclosure as month before delay expiration. Do I have good case for suit against lender for breach of implied contract for their beginning foreclosure during HUD delay period, and require lender to re-notice foreclosure with new notice of default? This would allow me time to complete probate and distribute house to heirs for refinance.
1 Answer from Attorneys
No, you do not. Unless you have something in writing that the six months was a forbearance on ANY action toward foreclosure, then it is perfectly reasonable and legal for them to take the necessary steps to foreclose shortly after the delay period expires. The delay is on foreclosure, not any and all action leading up to foreclosure, unless you have a clear agreement otherwise.
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