Legal Question in Real Estate Law in California
I have been appointed power of attorney of all affairs of a family member due to personal issues. The real estate property will be foreclosed in Oct 2012. I'm told that if I put the property in a trust, I can buy sometime to hopefully help this family member qualify for a loan modification, if this is true how much time will it give me until they become fully employed?
3 Answers from Attorneys
Being someone's attorney-in-fact gives you powers to act; it also gives you the responsibility to act competently and knowledgably. Trusts are of many kinds. A transfer to a trust most likely would either (a) have no effect on the lender's foreclosure rights whatsoever; or (b) would violate the terms of the loan agreement and give the lender an additional reason to foreclose and perhaps seek damages. You need to act upon competent advice, not amateur speculation.
Putting the property in trust is not going to stop a foreclosure sale. Only three things can stop a foreclosure sale: 1) An order of a court with competent jurisdiction; 2) filing bankruptcy which triggers the automatic stay (but only until the lender moves for relief from the automatic stay); and 3) paying the amount to reinstate the loan within the proper time periods.
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