Legal Question in Real Estate Law in California
Judicial Foreclosure - 3month time limit
I was late for 3 months than lender put me on a forbearance plan for 3 months now in waiting for a short sell deal to be done--name removed--
But they just announced this week that they can not approve the short sell--name removed--
My question: Can lender proceed
a judicial foreclosure given the fact that It has been more than 3 months that I was defaulted--name removed--
The following segment said something about 3month limit in
the judicial foreclosure:
--name removed----name removed--Hard-money loans in California -- loans taken out after the home was purchased through a refinance or second mortgage -- can be subject to a deficiency judgment under the following conditions:
The lender forecloses under judicial proceedings (California Code Civil. Proc--name removed-- 726)--name removed----name removed--
A three-month time limit applies to actions for deficiency judgments under a judicial foreclosure.
3 Answers from Attorneys
Re: Judicial Foreclosure - 3month time limit
I don't know about any 3-month time limit. Limit from when? If you are in default, you can be sued for judicial foreclosure. You may have defenses. There is a three-month (minimum) post-foreclosure redemption period in a judicial foreclosure. It's three months if the selling price pays off your debt; if it doesn't, you have a year to redeem. Maybe this is what you were thinking of?
Re: Judicial Foreclosure - 3month time limit
I don't know about any 3-month time limit. Limit from when? If you are in default, you can be sued for judicial foreclosure. You may have defenses. There is a three-month (minimum) post-foreclosure redemption period in a judicial foreclosure. It's three months if the selling price pays off your debt; if it doesn't, you have a year to redeem. Maybe this is what you were thinking of?
Re: Judicial Foreclosure - 3month time limit
The other three month period in Section 726 which I think you are confused with, involves when the lender may make application for the monetary deficiency judgment. They do not have to wait three months, they have to make application to the court, with supporting evenidence for the judgment within three months. I do not believe that there is a prohibition which will prevent the lender from obtaining a deficiency judgment shortly after the foreclosure sale.
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