Forclosure Law, stopping, fighting

Here is an item about fight foreclosure

RealEstateJournal | Family Goes to the Court House To Stave Off Foreclosure: "'I give him credit. He truly believes a banking institution did him a great wrong,' says Daniel Kalk, one of several lawyers who at various times represented Mr. Davet in the case. 'The funny thing is, some of the things he argued 10 years ago -- all of a sudden you see a federal court saying the same thing.'

A former jewelry-business owner, Mr. Davet and his wife, a former graphic-arts tutor, bought their home in 1978 for $150,000. As its value increased they borrowed against it. They made their mortgage payments, but on one loan, they allegedly made payments late -- 90 times, according to NationsBanc Mortgage Corp., which assessed the couple some $4,000 in late fees."

Can a homeowners association foreclosure

WAIS Document Retrieval: "1367.1. (a) A regular or special assessment and any late charges, reasonable fees and costs of collection, reasonable attorney's fees, if any, and interest, if any, as determined in accordance with Section 1366, shall be a debt of the owner of the separate interest at the time the assessment or other sums are levied. At least 30 days prior to recording a lien upon the separate interest of the owner of record to collect a debt that is past due under this subdivision, the association shall notify the owner of record in writing by certified mail of the following: (1) A general description of the collection and lien enforcement procedures of the association and the method of calculation of the amount, a statement that the owner of the separate interest has the right to inspect the association records, pursuant to Section 8333 of the Corporations Code, and the following statement in 14-point boldface type, if printed, or in capital letters, if typed: 'IMPORTANT NOTICE: IF YOUR SEPARATE INTEREST IS PLACED IN FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR ASSESSMENTS, IT MAY BE SOLD WITHOUT COURT ACTION.'"

Loss Mitgation - deed in lieu - fannie mae

Affordable Housing & Community Development: Resources for Homeowner Educators: Loss Mitigation Policies: "In Resources for Homeowner Educators

Loss Mitigation Policies

Predatory Lending

Loss Mitigation Policies

There are alternatives to foreclosure. The options made available to your clients by a servicer will depend not only on their own circumstances, but on the type of mortgage they have. For an FHA or VA mortgage, possible foreclosure alternatives are set by those respective federal agencies -- the U.S. Department of Housing and Urban Development for FHA loans and the Veterans Administration for VA loans.

To determine whether your client has a Fannie Mae loan, contact the servicer. Or, you (the housing educator/counselor) may contact the Fannie Mae Resource Center at 1-800-7FANNIE (1-800-732-6643) and provide your client's property address.

If your client has a Fannie Mae loan, the servicer may discuss the following options -- again, depending on your client's situation:

Alternatives to foreclosure when your clients can afford to keep the home
Sometimes your clients may experience a temporary reduction in income or financial hardship, such as an illness. When this happens, they may temporarily be unab"

Court Rulings Expected To Impact Foreclosure Filings | Foreclosed Homes Articles

This may not be totally on point in California as we have deeds of trust - but is something to talk about with your San Diego Foreclosure attorney

Court Rulings Expected To Impact Foreclosure Filings | Foreclosed Homes Articles: "The suit filed by the Wells Fargo Bank to foreclose on a North College Hill home was reported to witness the similar ruling by Common Pleas Judge Steven E. Martin in Hamilton County. The reason behind the ruling was again the weak proofs put forward by the bank’s lawyer to prove the mortgage ownership of the bank.

In a letter written by Martin to the lawyer of the bank mentioned that the plaintiff failed to justify its interest in the real estate property. The letter also warned the bank’s legal advisory firm, which is third highest in filing foreclosure suits, to come up with strong evidences in the future, while filing a case for the foreclosures.

The actual issue with the real estate mortgages is that the identity of the true mortgage owner is not known in most of the cases. These mortgages are sold from one hand to the other and thus, the banks are not the true owners of the mortgages. This is the reason that puts the banks in the hard situations."

foreclosure

Eli Broad said on CNBC today. (he is he founder of KB home.) He seemed especially animated when the conversation turned to the current state of the real estate market.

We are on a financial train wreck. Millions will lose their home.
Recession will come because of the foreclosures. He said that homeowners who are upside down are going to act more like renters than owners and this is going to cause a great deal of problems in he markets. He suggested it could take 3-4 years to work out.

Deed in Lieu of Foreclosure vs. Short sale

Short sales and Foreclosure Solutions: Taxes on real estate short sales and foreclosure: "Q 11. How is a deed in lieu of foreclosure treated? A For non-recourse debt, the amount 'realized' is the balance of the loan. This means the borrower will have capital gain or loss, but will not have debt relief income. For recourse debt, the borrower can have both capital gain or loss, and debt relief income. The result depends on whether the value of the property is more or less than the loan balance. For recourse debt, the loan balance or the property value, whichever is less, will be used in calculating capital gain or loss, and the borrower will be liable for debt relief income tax on the loan balance minus the property value."

san diego foreclosure attorney

Short sales and Foreclosure Solutions: California Home Equity Sales Act

the above is a link to the home equity sales act. A california law which real estate lawyers, realtors and investors need to know.

What Do You Need to Know About Workout Strategies?

First American - What Do You Need to Know About Workout Strategies?: "I. MODIFICATION AGREEMENTS I. Business Reasons for Modification of Loan Documents 1. Extend (or shorten) maturity date. 2. Capitalize delinquent interest. 3. Raise (or lower) interest rate. 4. Increase default rate. 5. Change or postpone payment dates, or amount of payment. 6. Permit assumption and release (or not release) borrower from liability. 7. Provide for additional principal disbursements. 8. Partially release property. 9. Require additional security for loan (additional property, personal guarantee of borrower or third parties, etc.). Note: The receipt of additional security by the lender for an antecedent debt may constitute a preferential transfer under sec. 547 of Bankruptcy Code if borrower files bankruptcy within 90 days thereafter. 10. When modifying mortgage, opportunity exists to correct or add other provisions, e.g., due-on-sale clause, cross default, guaranty, etc. II. General Legal Considerations 1. Modification Agreements are useful prior to acceleration of loan and foreclosure. 2. Obtain title search to determine if there are any other liens on the property. 3. Law is that, normally, priority of lien will be lost to extent that subordinate lienholders are prejudiced, or security is impaired, unless s"

Deeds in Lieu: Subsequent Foreclosure of Subordinate Mortgage

First American - Deeds in Lieu: Subsequent Foreclosure of Subordinate Mortgage: "Deeds in Lieu: Subsequent Foreclosure of Subordinate Mortgage Print this Page by John C. Murray © 2006. All rights reserved. Introduction Deeds in lieu of foreclosure are often heavily negotiated. However, in many instances the lender is actually doing the borrower a favor by agreeing to accept a deed-in-lieu. The lender rarely is actively seeking to acquire a property with a value less than the outstanding debt, which may require major repairs, renovation and rehabilitation. Lenders may even refuse to accept a deed-in-lieu, for reasons including environmental contamination, the belief that there is equity in the property, and excessive or monetarily significant subordinate liens. On the other hand, the lender may agree to accommodate a cooperative borrower by delaying the delivery of the conveyance to postpone the tax consequences to the borrower. There is certainly a benefit to taking title immediately and avoiding the foreclosure process, but this benefit inures to both the lender and the borrower. It is also costly to structure a deed-in-lieu transaction, and the lender will customarily bear virtually all of the transactional expenses, including title and recording costs, and environmental inspections. In any event, a deed in lieu of foreclosure does not “wipe out” any subordinate liens,"

You Can Avoid Foreclosure and Keep Your Home

You Can Avoid Foreclosure and Keep Your Home: "Steps to take when you can't pay your mortgage: - (Top) Contact your lender as soon as you have a problem Talk to a housing counselor Prioritize your debts Explore loan workout solutions with your lender If keeping your home is not an option Beware of predatory lending schemes 1. Contact your lender as soon as you have a problem - (Top) Many people avoid calling lenders about money troubles because we: o Feel embarrassed discussing money problems with others o Believe that if lenders know we are in trouble, they will automatically rush to a collection agency or foreclosure (seize property for failure to pay a mortgage debt) But lenders want to help borrowers keep their homes because: o Foreclosure is expensive for lenders, mortgage insurers and investors o HUD and private mortgage insurance companies and investors like Freddie Mac and Fannie Mae require lenders to work aggressively to help borrowers facing money problems Lenders have workout options (choices) to help you and: o These options work best when your loan is only one or two payments behind o The farther behind you are on your payments, the fewer options are"

Credit Repair: Scams

Credit Repair: Self Help May Be Best: "The Scam Everyday, companies nationwide appeal to consumers with poor credit histories. They promise, for a fee, to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job. The truth is, they can’t deliver. After you pay them hundreds or thousands of dollars in fees, these companies do nothing to improve your credit report; most simply vanish with your money. The Warning Signs If you decide to respond to a credit repair offer, look for these tell-tale signs of a scam: * companies that want you to pay for credit repair services before they provide any services. * companies that do not tell you your legal rights and what you can do for yourself for free. * companies that recommend that you not contact a credit reporting company directly. * companies that suggest that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number. * companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution. You could be cha"

Credit Repair: Self Help May Be Best

Credit Repair: Self Help May Be Best: "Credit Repair: Self Help May Be Best You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail. You may even get calls from telemarketers offering credit repair services. They all make the same claims: * “Credit problems? No problem!” * “We can erase your bad credit — 100% guaranteed.” * “Create a new credit identity — legally.” * “We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!” Do yourself a favor and save some money, too. Don’t believe these statements. Only time, a conscious effort, and a personal debt repayment plan will improve your credit report. This brochure explains how you can improve your creditworthiness and gives legitimate resources for low or no-cost he"

San Diego Foreclosure Attorney - tax liablity

Questions and Answers on Home Foreclosure and Debt Cancellation: "Step 2 – Figuring Gain from Foreclosure 4. Enter the fair market value of the property foreclosed.For non-recourse loans, enter the amount of the debt immediately prior to the foreclosure. __$200,000__ 5. Enter your adjusted basis in the property.(Usually your purchase price plus the cost of any major improvements.) ___$170,000__ 6. Subtract line 5 from line 4.If less than zero, enter zero.___$30,000__"

for more information on loan forgiveness and short sales please see our blog on San Diego Short Sales http://san-diego-short-sales.blogspot.com/2007/11/short-sales-and-tax-liability.html

Questions and Answers on Home Foreclosure and Debt Cancellation

I was recently asked this question by a San Diego Realtor on behalf of San Diego Homeowner - for people with non recourse loans note what the IRS says about .75% of the way down.

Questions and Answers on Home Foreclosure and Debt Cancellation: "Can you provide examples? A borrower bought a home in August 2005 and lived in it until it was taken through foreclosure in September 2007. The original purchase price was $170,000, the home is worth $200,000 at foreclosure, and the mortgage debt canceled at foreclosure is $220,000. At the time of the foreclosure, the borrower is insolvent, with liabilities (mortgage, credit cards, car loans and other debts) totaling $250,000 and assets totaling $230,000. The borrower figures income from the foreclosure as follows: Use the following steps to compute the income to be reported from a foreclosure: Step 1 - Figuring Cancellation of Debt Income (Note: For non-recourse loans, skip this section. You have no income from cancellation of debt.) 1. Enter the total amount of the debt immediately prior to the foreclosure.___$220,000__ 2. Enter the fair market value of the property from Form 1099-C, box 7. ___$200,000__ 3. Subtract line 2 from line 1.If less than zero, enter zero.___$20,000__ The amount on line 3 will generally equal the amount shown in box 2 of Form 1099-C. This amount is taxable unless you meet one of the exceptions in question 2. Enter it on line 21, Other Income, of your Form 1040."

Foreclosure - California - second home

Question? what would happen if the buyer wants to buy the home as a 2nd home? I don't believe this would fall under investor purchase so would this considered to be legal if an agent represents this particular buyer

Here is the law - http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=01001-02000&file=1695-1695.17



Here are the definitions - in part: 1695.1. The following definitions apply to this chapter:
(a) "Equity purchaser" means any person who acquires title to any
residence in foreclosure, except a person who acquires such title as
follows:
(1) For the purpose of using such property as a personal
residence.
(2) By a deed in lieu of foreclosure of any voluntary lien or
encumbrance of record.
(3) By a deed from a trustee acting under the power of sale
contained in a deed of trust or mortgage at a foreclosure sale
conducted pursuant to Article 1 (commencing with Section 2920) of
Chapter 2 of Title 14 of Part 4 of Division 3.
(4) At any sale of property authorized by statute.
(5) By order or judgment of any court.
(6) From a spouse, blood relative, or blood relative of a spouse.

(b) "Residence in foreclosure" and "residential real property in
foreclosure" means residential real property consisting of one- to
four-family dwelling units, one of which the owner occupies as his or
her principal place of residence, and against which there is an
outstanding notice of default, recorded pursuant to Article 1
(commencing with Section 2920) of Chapter 2 of Title 14 of Part 4 of
Division 3.
(c) "Equity seller" means any seller of a residence in
foreclosure.
(d) "Business day" means any calendar day except Sunday, or the
following business holidays: New Year's Day, Washington's Birthday,
Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans'
Day, Thanksgiving Day, and Christmas Day.
(e) "Contract" means any offer or any contract, agreement, or
arrangement, or any term thereof, between an equity purchaser and
equity seller incident to the sale of a residence in foreclosure.
(f) "Property owner" means the record title owner of the
residential real property in foreclosure at the time the notice of
default was recorded.

How to Stop a foreclosure

How to stop a foreclosure in San Diego - The following are some of the methods a san diego homeowner may wish to consider before accepting a foreclosure:

Payment full or an agreed to compromise
Bankruptcy - which will probably involve some sort of repayment plan
Reinstatement
Forbearance
Refinance
Short Refinance
Short Sale
Sale and bring money to the table
Law suit to seek rescission or damages - usually based on predatory lending, statutory violations such as TILA or RESPA or because of the actions or promises of the broker.

You may see alternative ideas or slick variations on the above but they will frequently be scams.

It boils down to this - if you wish to keep your home speak with a bank and an attorney.

If you have equity in your home find top of the line Realtor

If you are upside down put an attorney and a Realtor on your team. Even if you wish to sell to an investor it can hurt to have an attorney on tap.

Before signing over your deed on sort of sale and leaseback scheme speak with an attorney.

If you have equity in home speak with attorney and a Realtor.

What is a foreclosure

A foreclosure is the legal process by which a lender claim title to the property or forces the sale of the property because of the borrowers non payment or other breach of the duty under the loan agreement

San diego foreclosuress - reasons for default

San Diego properties values have tanked and owners no longer see point of plowing a great deal of money into an upside down home

Owner loses job or ablity to pay

Owner is transferred and can't sell

ridiculous loan funding in the first place

zero down loans

exploding adjustable rate loan

option arm - now requiring significant payment

All those loan brokers who said get in with this loan an refi in a few years when you have equity

California Foreclosure Law

In california lenders may foreclose on properties in two ways:

Judicial or Non Judicial foreclosure

the primary ways lenders secure loans for real estate are with deeds of trusts or mortgages and in our experience most of the focus is on deed of trust.

The timeline for a deed of trust, trustees sale can be typically about 120 days.

There may be a right of redemption with a Judicial foreclosure

Deficiency judgments are sometimes allowed after Judicial (in the courts) foreclosure.

In the past lenders generally used the non judicial foreclosure process because it is faster and "cleaner".

Buying Pre foreclosure real estate in California

How to buy San Diego foreclosures

Most of the free foreclosure information on the webs seems to be seller oriented. Here is some information of buyers.

Preforeclosure Sales in California: "The primary California law governing Preforeclosure Sales is Civil Code Sections 1695-1695.17. (In addition there are other California statutes governing foreclosure consultants in Civil Code Sections 2945-2945.11 and predatory lending in Financial Code Sections 4970-4979.6.) Federal bankruptcy law can also have an impact. Finally, there are practical considerations. California Law The California preforeclosure sale statutes are relatively intricate. They apply to any residential real property consisting of one-to-four family dwelling units, one of which the owner occupies as his or her principal place of residence, and against which there is an outstanding notice of default. Here are the high points. 1. Every equity purchase contract must be written in at least 10-point bold type and must be fully completed and signed and dated before execution of any instrument of conveyance of the residence in foreclosure. The contract must include the entire agreement of the parties, including but not limited to the terms of any rental agreement. See Section 1695.3 for the full requirements list. 2. In addition, each contract must contain the following notice in at least 14-point boldface type, if the contract is printed or in capital letters if the contract is typed, and completed with the name of the equity purchaser, immediately above the notice of cancellation: NOTICE REQU"

California Statutes and Legislation

Great links to legal information

California Statutes and Legislation @ LSNC.net: "California Statutes * California Code @ California Legislative Counsel - searchable by code and text. * California Statutes @ California Legislative Counsel - searchable, look here for statutes by chapters not yet codified. * Locate Legislation o Search for Senate and Assembly Bills @ California Senate - best place to start search for current and prior session legislative documents for all archived Senate and Assembly Bills. + Tips for searches at Senate site. o Search for Senate and Assembly Bills @ California Legislative Counsel - offers history and analyses of bills, plus PDF format copies. + Tips for text searches at Leg Counsel site. o Senate Bill Daily Updates @ California Senate - links to bill-related documents in current session added or replaced since yesterday morning. o Assembly Bill Daily Updates @ California Senate - ditto."

California foreclosure statutes

CA Codes (civ:2920-2944.5): "CIVIL CODE SECTION 2920-2944.5 2920. (a) A mortgage is a contract by which specific property, including an estate for years in real property, is hypothecated for the performance of an act, without the necessity of a change of possession. (b) For purposes of Sections 2924 to 2924h, inclusive, 'mortgage' also means any security device or instrument, other than a deed of trust, that confers a power of sale affecting real property or an estate for years therein, to be exercised after breach of the obligation so secured, including a real property sales contract, as defined in Section 2985, which contains such a provision. 2921. A mortgage may be created upon property held adversely to the mortgagor. 2922. A mortgage can be created, renewed, or extended, only by writing, executed with the formalities required in the case of a grant of real property."

San Diego Foreclosure Lawyer

WAIS Document Retrieval: "(b) A foreclosure consultant does not include any of the following: (1) A person licensed to practice law in this state when the person renders service in the course of his or her practice as an attorney at law."

Forceclosure Consultant

WAIS Document Retrieval: "a) 'Foreclosure consultant' means any person who makes any solicitation, representation, or offer to any owner to perform for compensation or who, for compensation, performs any service which the person in any manner represents will in any manner do any of the following:"

Mortgages and Deeds of Trust

WAIS Document Retrieval: "2947. Any interest in real property which is capable of being transferred may be mortgaged. 2948. A mortgage of real property may be made in substantially the following form: This mortgage, made the ____ day of ________, in the year ____, by A B, of _____, mortgagor, to C D, of ______; mortgagee, witnesseth: That the mortgagor mortgages to the mortgagee (here describe the property), as security for the payment to him of _______ dollars, on (or before) the _____ day of ________, in the year ____, with interest thereon (or as security for the payment of an obligation, describing it, etc.) A B. 2948.5. (a) A borrower shall not be required to pay interest on a principal obligation under a promissory note secured by a mortgage or deed of trust on real property improved with between one to four residential dwelling units for any period that meets any of the following requirements:"

Forelcosure - special assesment

WAIS Document Retrieval: "1367.1. (a) A regular or special assessment and any late charges, reasonable fees and costs of collection, reasonable attorney's fees, if any, and interest, if any, as determined in accordance with Section 1366, shall be a debt of the owner of the separate interest at the time the assessment or other sums are levied. At least 30 days prior to recording a lien upon the separate interest of the owner of record to collect a debt that is past due under this subdivision, the association shall notify the owner of record in writing by certified mail of the following: (1) A general description of the collection and lien enforcement procedures of the association and the method of calculation of the amount, a statement that the owner of the separate interest has the right to inspect the association records, pursuant to Section 8333 of the Corporations Code, and the following statement in 14-point boldface type, if printed, or in capital letters, if typed: 'IMPORTANT NOTICE: IF YOUR SEPARATE INTEREST IS PLACED IN FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR ASSESSMENTS, IT MAY BE SOLD WITHOUT COURT ACTION.'"

California Deed of Trust, Mortgage

California Mortgage and Deed of Trust Statutory Codes

WAIS Document Retrieval: "CALIFORNIA CODES CIVIL CODE SECTION 2920-2944.5 2920. (a) A mortgage is a contract by which specific property, including an estate for years in real property, is hypothecated for the performance of an act, without the necessity of a change of possession. (b) For purposes of Sections 2924 to 2924h, inclusive, 'mortgage' also means any security device or instrument, other than a deed of trust, that confers a power of sale affecting real property or an estate for years therein, to be exercised after breach of the obligation so secured, including a real property sales contract, as defined in Section 2985, which contains such a provision. 2921. A mortgage may be created upon property held adversely to the mortgagor. 2922. A mortgage can be created, renewed, or extended, only by writing, executed with the formalities required in the case of a grant of real property. 2923. The lien of a mortgage is special, unless otherwise expressly agreed, and is independent of possession."

San Diego foreclosure lawyer, foreclosure consultant

WAIS Document Retrieval: "(a) 'Foreclosure consultant' means any person who makes any solicitation, representation, or offer to any owner to perform for compensation or who, for compensation, performs any service which the person in any manner represents will in any manner do any of the following: (1) Stop or postpone the foreclosure sale. (2) Obtain any forbearance from any beneficiary or mortgagee. (3) Assist the owner to exercise the right of reinstatement provided in Section 2924c. (4) Obtain any extension of the period within which the owner may reinstate his or her obligation. (5) Obtain any waiver of an acceleration clause contained in any promissory note or contract secured by a deed of trust or mortgage on a residence in foreclosure or contained that deed of trust or mortgage. (6) Assist the owner to obtain a loan or advance of funds. (7) Avoid or ameliorate the impairment of the owner's credit resulting from the recording of a notice of default or the conduct of a foreclosure sale. (8) Save the owner's residence from foreclosure. (9) Assist the owner in obtaining from the beneficiary, mortgagee, trustee under a power of sale, or counsel for the beneficiary, mortgagee, or trustee, the remaining proceeds from the foreclosure sale of the owner's residence. (b) A foreclosure consultant does not include any of the following: (1) A person licensed to practice l"

California Foreclosure Law - Watch out for that notice of default

WAIS Document Retrieval: "2945. (a) The Legislature finds and declares that homeowners whose residences are in foreclosure are subject to fraud, deception, harassment, and unfair dealing by foreclosure consultants from the time a Notice of Default is recorded pursuant to Section 2924 until the time surplus funds from any foreclosure sale are distributed to the homeowner or his or her successor. Foreclosure consultants represent that they can assist homeowners who have defaulted on obligations secured by their residences. These foreclosure consultants, however, often charge high fees, the payment of which is often secured by a deed of trust on the residence to be saved, and perform no service or essentially a worthless service. Homeowners, relying on the foreclosure consultants' promises of help, take no other action, are diverted from lawful businesses which could render beneficial services, and often lose their homes, sometimes to the foreclosure consultants who purchase homes at a fraction of their value before the sale. Vulnerable homeowners are increasingly relying on the services of foreclosure consultants who advise the homeowner that the foreclosure consultant can obtain the remaining funds from the foreclosure sale if the homeowner executes an assignment of the surplus, a deed, or a power of attorney in favor of the foreclosure consultant. This results in the homeowner paying an"

San Diego short sale and foreclosure advisor

The legal department of the California association of realtors stated that a Realtor working with and investor must not represent that investor in the purchase of a home once the owner receives a notice of default.

Foreclosure investors must be cognizant of this law. An investor can incur criminal penalties.



San Diego short sale and foreclosure advisor: "In the October issue of Real Estate magazine on page 10 a staff attorney for the California Association of Realtors gave a interesting scenario in which a California Realtor wanted to represent 'Rick who was willing to buy Susan's home as an investment. Susan was elated with the full value offer because she wanted to sell the home before the Foreclosure sale. Susan's lender had properly recorded a notice of default. Can a Realtor represent Rick? No, it is illegal under the California Home Equity Sales Act because Rick does not have an insurance bond. (none are offered in California). If you are working with an investor you must have very good timing. When working with a short sale buyer you must consumate the transaction before the NOD gets recorded. Once the Notice of Default is filed the buyers Realtor must withdraw in writing (in this situation). But then the article from the attorney says you may be able to get a referral fee from the Selling agent. Which brings up the fascinating concept of the how the Seller's agents is going to interact with the buyer and then give a referral. I must give my standard disclaimer here - If you are an investor or a Realtor speak with a California Real Estate Attorney."

Foreclosure Scam Prevention - Home Equity law

WAIS Document Retrieval: "CALIFORNIA CODES CIVIL CODE SECTION 1695-1695.17 1695. (a) The Legislature finds and declares that homeowners whose residences are in foreclosure have been subjected to fraud, deception, and unfair dealing by home equity purchasers. The recent rapid escalation of home values, particularly in the urban areas, has resulted in a significant increase in home equities which are usually the greatest financial asset held by the homeowners of this state. During the time period between the commencement of foreclosure proceedings and the scheduled foreclosure sale date, homeowners in financial distress, especially the poor, elderly, and financially unsophisticated, are vulnerable to the importunities of equity purchasers who induce homeowners to sell their homes for a small fraction of their fair market values through the use of schemes which often involve oral and written misrepresentations, deceit, intimidation, and other unreasonable commercial practices. (b) The Legislature declares that it is the express policy of the state to preserve and guard the precious asset of home equity, and the social as well as the economic value of homeownership. (c) The Legislature further finds that equity purchasers have a significant impact upon the economy and well-being of this state and its local communities, and therefore the provisions of this chapter are necessary to promote the public"

Foreclosure and Rent skimming

WAIS Document Retrieval: "890. (a) (1) 'Rent skimming' means using revenue received from the rental of a parcel of residential real property at any time during the first year period after acquiring that property without first applying the revenue or an equivalent amount to the payments due on all mortgages and deeds of trust encumbering that property. (2) For purposes of this section, 'rent skimming' also means receiving revenue from the rental of a parcel of residential real property where the person receiving that revenue, without the consent of the owner or owner's agent, asserted possession or ownership of the residential property, whether under a false claim of title, by trespass, or any other unauthorized means, rented the property to another, and collected rents from the other person for the rental of the property. This paragraph does not apply to any tenant, subtenant, lessee, sublessee, or assignee, nor to any other hirer having a lawful occupancy interest in the residential dwelling. (b) 'Multiple acts of rent skimming' means knowingly and willfully rent skimming with respect to each of five or more parcels of residential real property acquired within any two-year period. (c) 'Person' means any natural person, any form of business organization, its officers and directors, and any natural person who authorizes rent skimming or who, being in a posit"

California foreclosure law anti Rent Skimming

WAIS Document Retrieval: "891. (a) A seller of an interest in residential real property who received a promissory note or other evidence of indebtedness for all or a portion of its purchase price secured by a lien on the property may bring an action against any person who has engaged in rent skimming with respect to that property. A seller who prevails in the action shall recover all actual damages and reasonable attorney's fees and costs. The court may award any appropriate equitable relief. The court shall award exemplary damages of not less than three times the actual damages if the defendant has engaged in multiple acts of rent skimming and may award exemplary damages in other cases."