Legal Question in Real Estate Law in California

Call lender immediately. What they will accept in order to stop the trustees sale will depend on what the lender chooses to do. It i s not a matter of law. Most lendeers ask you to pay enough to become not more than 90 days past due. There may be some flexibility in that and how soon you have to make the payments.

Starting making payments now is very unlikely to halt the foreclosure. However, there is a procedure to stop foreclosure and put the loan back in good standing, as before your parents stopped making payments. That procedure requires paying EVERYTHING that is now delinquent, plus all the lender's expenses of preparing to foreclose, late fees, etc. at least five (5) business days before the foreclosure sale. In order to insure that a sufficient payment is made, they need to contact the lender or the trustee immediately to ask what the reinstatement payment needs to be, and where to deliver the payment. The necessary payment will be all the monthly instalments from March through the current payment, plus penalties and foreclosure-related expenses incurred by the lender. This will be a substantial chunk of change, and they have maybe 12 days at most to raise the dough and pay the lender. This is not a time to let grass grow under the family's feet, especially since it is now Friday night and no business can be transacted until Monday. If a payoff is possible, get moving! Otherwise, they will lose their home.

I agree with Mr. Whipple to the extent that what he describes is what the lender can demand legally in order to reinstate the loan. In the present economic environment, few lenders are standing on the right to make a full reinstatement demand, because there are already too many foreclosed homes on their books that they need to sell, usually at a loss. Which is why most will let you get within 90 days of current. What we both agree on is that you have very little time to do anything and you need to be in communication with the lender NOW!!!

Your parents have a right of reinstatement. This 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 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).)

To determine the amount to reinstate, you must contact the lender immediately.