New California Law Requires Lenders to Record Foreclosure Sales

By
Real Estate Agent with HomeSmart, Evergreen Realty

California foreclosures 

New California law AB 2273 on bank foreclosures requires lenders to record foreclosure sales within 30 days of the foreclosure.

This bill was passed and signed into law by the governor in September this year - and will become in effect on January 1, 2013 - making lenders accountable for the properties they acquire.

CA homeowner associations

Example:  After the foreclosures sale is recorded, the lender must begin paying HOA dues and special assessments as they are levied.  

To receive maximum benefit from the new law, homeowners associations must record a blanket "Request for Notice" which would obligate the foreclosing party to give the HOA notice of the new owner within 15 days of the sale.

Start of non-judicial foreclosure process in California is initial notice recorded after borrower fails to meet the terms of their loan. CC 2924c.(a)(1)

Sets auction date. Can be recorded 3 months after Notice of Default
CC 2924 c. (b)(1)

Initial auction date can be just 20 days after Notice of Trustees Sale is recorded.
CC 2924 f. (b)(1)

Auctions can postpone for up to one year.
CC 2924 g. (c)(1)

Transfers property to winning bidder. By default this will be the lender if no bid higher than the lender's opening bid is received. CC 2924 h. (c)

California homeowners associations should be careful to identify new owners of the property after foreclosure and protect their right to be paid assessments according to this new law AB 2273 - requiring lenders to record foreclosure sales within 30 days after the foreclosure.

 

____________________________________________________
 

Harrison K. Long - real estate and business solutions - REALTOR® and broker associate, GRI - Coldwell Banker Residential Brokerage - 949-854-7747 (phone) - ExploreProperties@gmail.com - CA DRE 01410855 - SFR short sale and foreclosure resource certified by the National Association of REALTORs® - now serving as an appointed director at California Association of Realtors - attorney member of the California state bar association #69137

CB previews logo

Source of information is ForeclosureRadar.com and Adams Kessler PLC, attorneys re California common interest developments.     

 

Contact us here about listing and sale of your Irvine or Orange County CA homes and real estate.

 

Professional REALTOR® agent representation - help for property owners, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA

 

Posted by

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
California
Groups:
ORANGE COUNTY, CA REAL ESTATE
California Real Estate Law
CALIFORNIA REAL ESTATE
All things California
Realtors®
Tags:
california real estate law
california homeowners associations
california nonjudicial foreclosure process

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
676,319
Gary Frimann
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

Harrison, this is great information.  The HOA I'm living under has had trouble collecting...  

Dec 18, 2012 10:48 AM #1
Rainmaker
506,781
Harrison K. Long
HomeSmart, Evergreen Realty - Irvine, CA
REALTOR , GRI, Broker associate, Attorney

Gary ... I hope that HOAs here in California can determine ownership of properties in their communities and start getting paid.  When lenders take properities in foreclosure to become REOs, those lender owners should pay the HOA assessments and help with financial stability of communities.

Dec 18, 2012 11:06 PM #2
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
506,781

Harrison K. Long

REALTOR , GRI, Broker associate, Attorney
Ask me a question
*
*
*
*
Spam prevention

Additional Information