Legal Question in Real Estate Law in California

I am trying to help my in-laws who are not very internet savvy. They live in California and just recently had their home sold at an auction while they were awaiting to hear back from their bank about a loan modification that was being worked on. Was this a legal procedure by their bank to sell their home before providing the information on the loan modification? They have been very stressed out over the past months while getting the run around from their lender. PLEASE provide me with any answers and advice that can help them with their difficult situation. I look forward to your reply and appreciate your time and help.

Gary


Asked on 8/27/11, 10:55 pm

2 Answers from Attorneys
Anthony Roach Law Office of Anthony A. Roach

They are going to have to speak to an attorney. Under federal law, loan modification evaluation is supposed to take place before the foreclosure process begins. Unfortunately, the federal law, and California state law counterparts, do not have any teeth for enforcement, and the courts have not created or enforced the procedures very strictly against lenders.

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Answered on 8/28/11, 6:09 am
Terry A. Nelson Nelson & Lawless

Generally loan mod paperwork makes clear that default and foreclosure proceedings are not necessarily stopped by the application. They need to consult with local counsel experienced in such issues to see IF they have any reasonable remedy other than redemption, if they even have that.

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Answered on 8/29/11, 3:28 am


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