Legal Question in Real Estate Law in California
Foreclosure sale
I am having my loan modification
docs reviewed and it looks like a
decision will not be made before my
the date of my foreclosure sale.
Gmac will not allow my to request
an extension until 5 days before the
sale. They told me Fannie Mae will
not let them make the request until
the 5 day mark. Problem with that is
I understand that I give up my right
for reinstatement 5 days prior to
the sale date. They said ''don't
worry'' we will still reinstate you up
to the day before the sale if you
want to make the payment to cure
the loan. My house is worth twice
the amount I owe on the loan and I don't trust them. Is there anything
else I can do, and am I right to be skeptical?
2 Answers from Attorneys
Re: Foreclosure sale
Yes, if I were you, I would be very suspicious. I have consulted with scores of clients who have had their house sold beneath them while the bank was "working out" the terms of a loan mod. Every discussion you have with the bank needs to be memorialized by a written confirmation. You should consider hiring a lawyer to protect your rights, before it is too late.
Re: Foreclosure sale
UNDER CAL LAW YOUR RIGHT TO CURE AND REINSTATE ENDS ON THE FIFTH DAY BEFORE THE SALE. IF THE LENDER AGREES TO GIVE YOU A CURE PERIOD UP TO THE DAY BEFORE THE SALE, THEN HAVE THEM PUT IN IN WRITING.
GOOD CHANCE THEY WON'T DO THIS. THERE ARE TOO MANY LEVELS IN MOST OF THESE ORGANIZATIONS, AND THE RIGHT HAND SELDOM KNOWS WHAT THE LEFT HAND IS DOING.
THUS, IF IT IS NOT IN WRITING, DO NOT RELY ON ANY REPRESENTATIONS OF THE LENDER OR THE AGENT'S OF THE LENDER.
IF THE HOUSE IS WORTH THAT MUCH, YOU SHOULD BE ABLE TO MAKE SOME ARRANGEMENT TO SAVE IT WITHOUT RELYING ON THE UNWRITTEN WORD OF ONE OF THE LENDER'S AGENTS.
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