Legal Question in Real Estate Law in California

Foreclosure Reinstatement Fees

I requested a reinstatement quote from my lender who held the 2nd on my condo. A NOD had just been filed and I was prepared to make up the payments, late fees and foreclosure costs. The figure seemed extremely high but I did not have time to question the lender as they dragged their feet in responding to my request. After bringing the loan current I started researching the California Civil Code as to what a lender can legally charge for reinstatement and foreclosure fees. I got suspicious and phoned the foreclosure company and spoke with the agent in charge. She gave me the exact figure (under $700.00) and said the fee was that low because the NOD really hadn't even started. I owed $2,800.00 in back payments, that is including late fees. The total amount charged to the lender by the foreclosure (title/escrow) company was less than $700.00, the loan was reinstated before any other fees were accrued, however, the lender charged me a total of $8,700.00 to reinstate. I called the lender and questioned him on how and where he came up with the extra fees and he boldly said ''that is for wasting my time''! What can I do? Please help as it has really set me back... Thank you for your time.


Asked on 5/03/07, 11:33 am

3 Answers from Attorneys
Johm Smith tom's

Re: Foreclosure Reinstatement Fees

You can contact us if you want a 30 free consult.

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Answered on 5/03/07, 11:52 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Foreclosure Reinstatement Fees

Regarding the previous answer, why would anyone consult with an attorney in Louisiana, which has the USA's only legal system based on civil (Roman) law instead of English common law, about an issue governed by rather complex California statutes?

I would suggest finding out what kind of licensing authority this lender operates under. If it is licensed by the California Dep't. of Real Estate, you could make a formal complaint. If it is unlicensed, the demand for and collection of these fees may be usury and the lender would be subject to treble damages, which might interest a local attorney in the 92260 area in taking your case on contingency.

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Answered on 5/03/07, 1:34 pm
Daniel Harrison Berger Harrison, APC

Re: Foreclosure Reinstatement Fees

It sounds like you were ripped off. $5,000 or so in junk? Contact us. We may be interested in helping you out.

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Answered on 5/05/07, 12:04 pm


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