Legal Question in Real Estate Law in California

Re: Foreclosure

Yes, there is a way to prevent foreclosure; it's done by "cure of default," which means paying what was past due at the time of default, what has become due in the interim (other than because of an acceleration clause), and reasonable costs incurred by the lender. You can reinstate your loan by making or tendering this payment up to five business days before the sale date in the notice of sale. I have heard of reinstatements being made even closer to the sale date.

The provisions of the applicable law are lengthy and detailed, and include some wrinkles there just isn't time or space to include in a bulletin borad answer. You can find the full text at Civil Code section 2924c. You may have to pay some of the bank's legal fees, but I believe these are capped by law. You can find the code on line, or at most larger general libraries, or the county law library.

The notice of default and/or the notice of sale should contain some additional information regarding how to cure your default and obtain reinstatement, such as where the payment is to be made. If you mail it, be sure to get proof of delivery.

Re: Foreclosure

Until shortly before the foreclosure sale, you have the right to pay the past due amount to reinstate the loan. You can also try to negotiate a repayment plan with the bank to repay the past due amount over time. Finally, you can talk to a bankruptcy attorney to see if can qualify for a Chapter 13 repayment plan and force the bank to take payments over time.