How does tHe foreclosure process work in california?Mortgage servicers almost always use California’s “non-judicial” foreclosure method, which allows them to avoid going to court. Instead, they have to:

Contact you (by phone or in person) to discuss alternatives to foreclosure at least 30 days before recording the first foreclosure document with the county.

If you do not qualify for a foreclosure alternative or do not respond to your servicer when it tries to contact you, it can record a “Notice of Default and Election to Sell under Deed of Trust” with the county recorder’s office and must mail that notice to you within 10 days.

Three months after recording the Notice of Default, your bank can record a Notice of Trustee’s Sale and must post it on your property and mail it to you. It must tell you the date and place of sale.

No fewer than 20 days after recording the Notice of Trustee’s Sale, your home may be sold.

The mortgage servicer or lender can stop or postpone the sale at any point. You should seek expert advice on your options as quickly as possible. Beware of scams. Really—if it sounds too good to be true, it is. Find out what your options really are as soon as possible. Contact HERA or other resources listed in this brochure for advice.

protecting all people

from discrimination and

eConoMIC abuses, espeCIally

in tHe realm of Housing

www.heraCa.org

phone: 510-271-8443 fax: 510-868-4521

eMaIl: InquIrIes@heraCa.org

po box 29435, oakland, Ca 94604

CALIFORNIA’S FORECLOSURE PROCESS & HOMEOWNER RIGHTS

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you have special rights under the California homeowner bill of rights when a bank wants to foreclose on a house you live in.

your servicer must:

• Give you an assigned representative (or team) who can give you accurate information about your loan and tell you how to apply for help.

• Send you a letter listing which documents to submit to have a “complete application” for a modification or other foreclosure prevention alternative.

• Accurately review you for alternatives to foreclosure.

• Offer you a loan modification if you qualify for one and give you a detailed explanation of why if you don’t.

• Give you an chance to appeal a denial.

your servicer must:

• Stop the foreclosure process if you provide a complete application for an alternative to foreclosure and you either have never applied before or have had a change in your finances since you last applied for help. Your bank cannot begin or continue the foreclosure process until it determines that you do not qualify for a modification and has given you a chance to appeal that denial, or until you reject its modification offer.

• Charge you a fee for a loan modification.

• Keep asking you repeatedly for the same documents.

There are many other rules that the servicer must also follow, both under the HBOR and under federal loss mitigation (foreclosure avoidance) programs. If you think your servicer has violated any of these rules, or if something else happens that feels wrong, call HERA at 510 271-8443, ext. 300, which is our intake line, usually open the first 3 weeks of each month.

what happens after My hoMe Is sold at tHe foreclosure sale?

You are legally allowed to stay in your home until a sheriff evicts you. The new owner is not allowed to evict you, or change your locks or remove your belongings without taking you to court through an Unlawful Detainer case, which they can only start by giving you a Three-Day Notice to Quit, and then a 5-Day Unlawful Detainer Summons and Complaint.

The new owner (which might be the lender or investor in your mortgage) may also offer you cash to move out because it is cheaper than taking you to court. There is no set amount, but usually the sooner you are willing to move out, the more the new owner is willing to pay. The agreement should be in writing and you should get the money either before or upon move out. Take pictures of your home (inside and out) before you leave so that you can prove the condition you left it in.

If you do not respond to the Unlawful Detainer suit within five days of being served, the new owner can try to get a judgment against you right away, and you may lose the opportunity to contest the eviction. You should consult with a legal aid office, or a Self-Help clinic at the courthouse for help responding to the suit.

wHat if someone promises to get Me More tIMe In My hoMe If I pay theM Money?That’s a scam, and you should report the person or company to the local district attorney’s office, or the State Bar of California if it is an attorney. Such scams may include filing a bankruptcy on your behalf without warning you, or involving you in a more complex fraud.

If I have other questIons, who do i call?

• Housing and Economic Rights Advocates (HERA) at (510) 271-8443, ext. 300.

• Self-Help Clinic at the local courthouse. Call the local court for information.

• Your local legal aid office. For a list, go to lawhelpca.org. Note that some legal aid offices will not help former homeowners with the eviction.

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