Legal Question in Real Estate Law in California

Re: foreclosure

Foreclosures are very public procedures and the credit reporting agencies would learn about one from public records without the necessity of the 'private person' making a report. However, anyone can make a report to a credit agency; not only do banks and stores report, all kinds of individuals such as landlords report deadbeats to credit agencies.

The good news is that it looks like you are being subjected to spurious pressure. If all is as you report, there is no default and no basis for a foreclosure proceeding.

Nevertheless, foreclosure on a property you've owned and made payments on for 7.5 years could be devastating, even if you could bring it to a halt short of a forecosure sale. Therefore, I advise you to do whatever is reasonably necessary and possible to rectify the tension between you and the lender. Among other things, you could perhaps refinance. Rates are now lower than 7.5 years ago.

Otherwise, please get a 1/2 hour free consultation with a real estate lawyer in your county. You have excellent defenses and statutory protections, but if you are lax or careless in defending your rights you could end up in serious trouble with your investment.

Re: foreclosure

Presumably you signed a note and a deed of trust securing that note. If this is the case,should you fail to live up to any of the material terms of the note and deed of trust,such as making payments, insuring the property, paying taxes, etc., he can foreclose. Yes, it will go on your credit because all of the necessary procedures to foreclose are public records and the credit reporting agencies regularly pick up that information. Since you failed to live up to an earlier agreement to make up back taxes, you are still responsible for reimbursements to the holder of the note. In short, you must bring all the past due monies owed to the holder of the note current, or he is entitled to foreclose