Legal Question in Real Estate Law in California

See a bankruptcy attorney at once. Maybe you can reduce the principal and interest, and certainly you can stop a foreclosure, with a Chapter 13 filing.

Bankruptcy helps some, but is not the answer for everyone. See a local real estate lawyer; you may have rights to longer notice and/or quicker response times from the lender. If everything you write is accurate, and there are no additional important facts, I think the lender is pushing too hard and not extending you all the time and other rights to which you're entitled. Use Ch. 13 as a last resort, not as a primary strategy.

You are asking about reinstatement.

I'm concerned about some other issues, because you state that a noice of default was recorded in November. At least three months must elapse after the notice of default is recorded, before a notice of sale can be recorded. A notice of sale cannot set a sale date less than 21 days from the recording of the notice of sale. California law recently changed, to allow recording of the notice of sale earlier than the 3 month period, but the actual trustee's sale cannot be shortened to a period less than 21 days after the three month period from the notice of default has elapsed.

The right of reinstatement is set forth in Civil Code section 2924c. In pertinent part, that section provides that whenever all or a portion of the principal sum of any obligation secured by a deed of trust or mortgage of real property has become due by reason of default in payment of interest or of any installment of principal, the trustor may pay the entire amount due that is in default and reasonable costs and expenses, as if no default or acceleration had occurred. (Civ. Code, � 2924c, subd. (a)(1).)

The amount of reinstatement is all amounts of principal, interest, taxes, assessments, insurance premiums, or advances actually known by the beneficiary showing in the notices of default, all amounts in default on recurring obligations not shown in the notice of default and reasonable costs and expenses incurred in enforcing the deed of trust and trustee�s and attorney�s fees, other than the portion of principal as would not then be due had no default occurred. (Civ. Code, � 2924c, subd. (a)(1).)

The issue that I discussed above, regarding the notices is important, because the right of reinstatement expires 5 business days prior to the trustee's sale. The right of reinstatement may be made at any time within the period commencing with the recordation of the notice of default until five (5) business days prior to the date of sale. (Civ. Code, � 2924c, subd. (e).) When a sale is postponed for more than five (5) days, the right of reinstatement is revived, to expire five (5) business days prior to the new date of sale. (Civ. Code, � 2924c, subd. (e).)

You also have the right, as the trustor, to deman that the foreclosing beneficiary prepare and deliver either a "beneficiary statement" ora "payoff demand statement" that provides information regarding the amount that must be paid to reinstate or discharge the secured debt. (Civ. Code, sect. 2943.)

If the beneficiary (meaning the lender) refuses to provide a statement, the trustor should tender the amount he or she resaonably believes to be due, and get an injunction to stop the foreclosure until a proper demand is made by the beneficiary.