Legal Question in Real Estate Law in California
I defaulted on loan payments for my condo on October 17, 2011. The bank filed a Notice of Default in August of 2012. The bank has now filed a Notice of Trustee Sale in January 2016 with a sale date scheduled for February 9, 2016.
The statute of limitations for a written contract is 4 years from the date of breach. Since I breached on October 17, 2011, over 4 years ago, does the statute of limitations apply?
2 Answers from Attorneys
The statute of limitations is only a bar to filing a lawsuit to collect the debt. It does not affect the validity or enforcement of the deed of trust. So it does not apply to the sale.
I would add, primarily as a matter of theoretical interest, each subsequent monthly failure to pay would be a new breach, giving rise to a fresh cause of action and a new four-year period within which suit could be brought. In the case of a note and deed of trust, of course, foreclosure is easier, quicker and cheaper, so 99.99% of the time lenders foreclose rather than bringing suit on the underlying contract.
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