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."