Legal Question in Real Estate Law in California
I was sent a Notice of Default 1-1/2 years ago. If the bank doesn't act on it, will that NOD expire at some point and need to be refiled should they decide to take action?
1 Answer from Attorneys
Notices of Default do not have formal expiration times. California courts have held that a delay in proceeding to foreclosure of three years is not excessive, and the lender could still notice and conduct a sale. There is some hint in these cases that very long delays could be a factor in finding a waiver of the right to foreclose, or that the borrower might be able to show that his rights were impaired by the delay, but I certainly would not suggest relying upon defending against a foreclosure on a three-year-old NOD on the basis of waiver, estoppel, laches or prejudice.