Stop foreclosure for 50.00 bucks

11 Oct

Law Offices of
TIMOTHY McCandless
15647 Village Dr
Victorville, Ca 92392
TEL (760) 733-8885; FAX (909)494-4214

tim@saharaoasis.com

California as of Sept 6, 2008 has added the following provisions that must be complied with prior to effectuating a foreclosure. It is hoped that lenders will work out things with borrowers as a result of this addition to civil code 2923.5.

The lenders however are running roughshod over borrowers and claiming to make telephonic contact. When they make contact they merely say you are $26,580.00 behind how are you going to pay. That’s working it out.

Most folks don’t have the 10,000.00 retainer to pay an attorney to file the lawsuit to make the lender do the right thing. Here is a way for under $50.00 to get the lender to the table.

File a declaration of non-compliance with 2923.5. In this declaration state that the real beneficiary has not contacted you and has not assessed your financial situation as mandated in 2923.5 (a) (2).

In this declaration state that you do not even know who the beneficiary is that is to say most lenders are not the true beneficiary.

Lastly you should claim the loan you want and the amount that you are willing to pay. When I say file I mean record at the county recorder and be sure to include the legal description of your property. You must have your signature notarized by a notary public. Then send this conformed copy of the recorded document to anyone that is trying to foreclose. The trustee the title company, MERS, the servicer.(update Dec 2008) Some counties would not record the former form advised for this form. However there is provision for recording a declaration. I have renamed it a declaration and put a penalty of perjury statement at the signature line.

This may cause the title company not to insure the title upon completion of the foreclosure. This may force the lender to undergo a judicial foreclosure in most cases in the subprime world they don’t even have the promissory note so a judicial foreclosure would be impossible.

CC 2923.5

(a) (1) A mortgagee, trustee, beneficiary, or authorized agent may not file a notice of default pursuant to Section 2924 until 30 days after contact is made as required by paragraph (2) or 30
days after satisfying the due diligence requirements as described in
subdivision (g).
(2) A mortgagee, beneficiary, or authorized agent shall contact
the borrower in person or by telephone in order to assess the
borrower’s financial situation and explore options for the borrower
to avoid foreclosure. During the initial contact, the mortgagee,
beneficiary, or authorized agent shall advise the borrower that he or
she has the right to request a subsequent meeting and, if requested,
the mortgagee, beneficiary, or authorized agent shall schedule the
meeting to occur within 14 days. The assessment of the borrower’s
financial situation and discussion of options may occur during the
first contact, or at the subsequent meeting scheduled for that
purpose. In either case, the borrower shall be provided the toll-free
telephone number made available by the United States Department of
Housing and Urban Development (HUD) to find a HUD-certified housing
counseling agency. Any meeting may occur telephonically.
(b) A notice of default filed pursuant to Section 2924 shall
include a declaration from the mortgagee, beneficiary, or authorized
agent that it has contacted the borrower, tried with due diligence to
contact the borrower as required by this section, or the borrower
has surrendered the property to the mortgagee, trustee, beneficiary,
or authorized agent.
(c) If a mortgagee, trustee, beneficiary, or authorized agent had
already filed the notice of default prior to the enactment of this
section and did not subsequently file a notice of rescission, then
the mortgagee, trustee, beneficiary, or authorized agent shall, as
part of the notice of sale filed pursuant to Section 2924f, include a
declaration that either:
(1) States that the borrower was contacted to assess the borrower’
s financial situation and to explore options for the borrower to
avoid foreclosure.
(2) Lists the efforts made, if any, to contact the borrower in the
event no contact was made.
(d) A mortgagee’s, beneficiary’s, or authorized agent’s loss
mitigation personnel may participate by telephone during any contact
required by this section.
(e) For purposes of this section, a “borrower” shall include a
mortgagor or trustor.
(f) A borrower may designate a HUD-certified housing counseling
agency, attorney, or other advisor to discuss with the mortgagee,
beneficiary, or authorized agent, on the borrower’s behalf, options
for the borrower to avoid foreclosure. That contact made at the
direction of the borrower shall satisfy the contact requirements of
paragraph (2) of subdivision (a). Any loan modification or workout
plan offered at the meeting by the mortgagee, beneficiary, or
authorized agent is subject to approval by the borrower.
(g) A notice of default may be filed pursuant to Section 2924 when
a mortgagee, beneficiary, or authorized agent has not contacted a
borrower as required by paragraph (2) of subdivision (a) provided
that the failure to contact the borrower occurred despite the due
diligence of the mortgagee, beneficiary, or authorized agent. For
purposes of this section, “due diligence” shall require and mean all
of the following:
(1) A mortgagee, beneficiary, or authorized agent shall first
attempt to contact a borrower by sending a first-class letter that
includes the toll-free telephone number made available by HUD to find
a HUD-certified housing counseling agency.
(2) (A) After the letter has been sent, the mortgagee,
beneficiary, or authorized agent shall attempt to contact the
borrower by telephone at least three times at different hours and on
different days. Telephone calls shall be made to the primary
telephone number on file.
(B) A mortgagee, beneficiary, or authorized agent may attempt to
contact a borrower using an automated system to dial borrowers,
provided that, if the telephone call is answered, the call is
connected to a live representative of the mortgagee, beneficiary, or
authorized agent.
(C) A mortgagee, beneficiary, or authorized agent satisfies the
telephone contact requirements of this paragraph if it determines,
after attempting contact pursuant to this paragraph, that the
borrower’s primary telephone number and secondary telephone number or
numbers on file, if any, have been disconnected.
(3) If the borrower does not respond within two weeks after the
telephone call requirements of paragraph (2) have been satisfied, the
mortgagee, beneficiary, or authorized agent shall then send a
certified letter, with return receipt requested.
(4) The mortgagee, beneficiary, or authorized agent shall provide
a means for the borrower to contact it in a timely manner, including
a toll-free telephone number that will provide access to a live
representative during business hours.
(5) The mortgagee, beneficiary, or authorized agent has posted a
prominent link on the homepage of its Internet Web site, if any, to
the following information:
(A) Options that may be available to borrowers who are unable to
afford their mortgage payments and who wish to avoid foreclosure, and
instructions to borrowers advising them on steps to take to explore
those options.
(B) A list of financial documents borrowers should collect and be
prepared to present to the mortgagee, beneficiary, or authorized
agent when discussing options for avoiding foreclosure.
(C) A toll-free telephone number for borrowers who wish to discuss
options for avoiding foreclosure with their mortgagee, beneficiary,
or authorized agent.
(D) The toll-free telephone number made available by HUD to find a
HUD-certified housing counseling agency.
(h) Subdivisions (a), (c), and (g) shall not apply if any of the
following occurs:
(1) The borrower has surrendered the property as evidenced by
either a letter confirming the surrender or delivery of the keys to
the property to the mortgagee, trustee, beneficiary, or authorized
agent.
(2) The borrower has contracted with an organization, person, or
entity whose primary business is advising people who have decided to
leave their homes on how to extend the foreclosure process and avoid
their contractual obligations to mortgagees or beneficiaries.
(3) The borrower has filed for bankruptcy, and the proceedings
have not been finalized.
(i) This section shall apply only to loans made from January 1,
2003, to December 31, 2007, inclusive, that are secured by
residential real property and are for owner-occupied residences. For
purposes of this subdivision, “owner-occupied” means that the
residence is the principal residence of the borrower.
(j) This section shall remain in effect only until January 1, 2013,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2013, deletes or extends that date.

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO

You

________________________________________________ SPACE ABOVE THIS LINE FOR RECORDER’S USE

You

V
Them (Your lender ,trustee ETC.
.

NOTICE OF NON COPLIANCE
CALIFORNIA CIVIL CODE § 2923.5

DECLARATION

Notice is given that the LENDERS AND OR TRUSTEES LISTED ABOVE has not complied with civil code 2923.5. As such all notices of default and or trustee sales and such other recordings and actions are void as a matter of law.
I have in good faith attempted to mediate the loan and the true beneficiary has refused to negotiate in good faith. They have not complied with the provisions in which they were to meet with me in person or by telephone in order to assess the borrower’s financial situation and explore options for the borrower to avoid foreclosure. During the initial contact, the mortgagee,
Beneficiary, or authorized agent shall advise the borrower that he or she has the right to request a subsequent meeting and, if requested, the mortgagee, beneficiary, or authorized agent shall schedule the meeting to occur within 14 days. The assessment of the borrower’s financial situation and discussion of options may occur during the first contact, or at the subsequent meeting scheduled for that purpose.

If we had met the property would have reflected a value of ______________. I am willing to pay an interest rate of _____and I will be able to make monthly payments of__________. The principal balance of my loan should be reduced the present market value of ____________.

In the event this is not acceptable I hereby exercise my right to have the security interest in this property rescinded pursuant to the Truth in Lending Act.

APN: ______ ________ ___________

And with a legal description of:
Lot __ of Tract No. _________, in the City of _____________________, County of ___________, State of California, as per Map recorded in Book ________, Pages ___ and ____ of Maps, in the Office of the County Recorder of said County
I declare under penalty of perjury that the forgoing is true and correct.
Dated ______________ .

____________________________________

ACKNOWLEDGMENT
Subscribed and sworn to before me this ______
day of ____, 2008
____________________________________
Notary Public in and for the County of _______________, State of California

21 Responses to “Stop foreclosure for 50.00 bucks”

  1. John Mendaros October 31, 2008 at 5:55 pm #

    I am a Loan Officer. I have previous clients who are seeking my help to help them refinance their principal residences that are now on default and or under foreclosue. I can help them file the Notice of Non-Compliance however, once the Trustee or lender’s legal department responds to our complaint, can my clients hire you to represent them?
    Please help us.

    Sincerely,
    John Mendaros
    johnmendaros@yahoo.com
    1-925-858-6978

    • timothymccandless February 21, 2009 at 6:11 am #

      If they are in California I can Call the office 760-733-8885

  2. Guillermo Calixtro February 20, 2009 at 10:56 pm #

    I was told that if Notice of Default is sent and NO notice of trustee sale is posted after 6 months from the date of the Notice of Default, then such notice of default MUST be re-posted ?? Any comments.
    Thank you.
    Guillermo Calixtro
    guillermocalixtro@hotmail.com

    • timothymccandless February 21, 2009 at 6:09 am #

      I believe they can publish trustee sale no sooner than 90 days they could always publish later the more important questions is have they complied with 2923.5 and 2932.5 and 2923.6 and has the actual lender contacted the borrower and tried in good faith to work things out

  3. C.M. Willis March 25, 2009 at 8:50 am #

    Timothy, Will Shasta County accept your filing of the Declaration? They stand by “there is no provision to file an affadavit” . I have not approached them on a Declaration. C.M. Willis

  4. C.M. Willis March 25, 2009 at 8:57 am #

    Timothy,
    Also, what happens if you file a COMPLAINT for Non-Compliance in Superior Court? Will that negate a non-judical foreclosure and start a judical proceeding? C.M. Willis

  5. C.M. Willis March 25, 2009 at 2:05 pm #

    Timothy, I approached the Shasta County
    Recorder about the Declaration with the same results “no provision listed” for filing. She did however allow us to review the Reference & Indexing manual which gave an insight as to how they decide what documents to accept & reject.
    C.M. Willis

  6. C.M. Willis March 25, 2009 at 2:33 pm #

    Counselor, What effect does SB 1137 have on filing a Declaration of Non-Compliance CCC 2923.5 ? It appears to add & repeal 2923.5, &.6,
    2924.8 and 2929.3 as well as CCP 1161(b)
    C.M.Willis

  7. C.M. Willis March 25, 2009 at 3:02 pm #

    Timothy, please disregard the prior e-mail (2:33 pm). Bonehead error! C.M.Willis

  8. ABETTERLIFESOON May 12, 2009 at 8:43 am #

    Can this be used for non “owner occupied” residences. We have a vacation property that his not used 50% or more of the time. Please advise. Thanks.

    • timothymccandless May 13, 2009 at 6:35 am #

      If the loan was for second home.

      Otherwise the rules of plain economics apply either the property is worth it to you and your family or its not. Make a Short sale offer and move on. Don’t try to negotiate if you are not willing to walk away. These days you must be strong with these lenders or they will put you in a deal that only makes sense for them…

  9. ABETTERLIFESOON May 12, 2009 at 8:47 am #

    If there is a second on a property and the total value of the property is less than even the first lien (upside down), have you ever gotten the 2nd to agree to a nominal amount (let’s say a $1,000 or so) outside of Lien Stripping in BK?

  10. mari July 12, 2009 at 9:54 am #

    good day,
    i cannot find the 2924.5 (a) (2) code anywhere as mentioned in the 4th paragraph of this article. do you know where i can view the exact words of this?
    I did find 2924.5 but not clear on what that means can you explain that a bit?
    thank you

  11. Barry Blythe February 25, 2010 at 12:03 pm #

    I sent you a comment on your other website. I am interested in getting the Notice of Non-Compliance in a recordable format acceptable to the Riverside County Recorder. Any updates would be greatly appreciated.

  12. Malvinaroze March 16, 2010 at 6:50 pm #

    Atty Mccandles. You are AWESOME. I’m in Alameda County and just got a Law Firm located in Huntington Beach representing CALHFA to dismiss their UD case against me and my tenant living in a single family home in Oakland. There UD case was riddled with Fraud as far as service etc. went. In addition after reviewing your Website I realize that they are in violation of 2923.5 etc. Is this a good time to pursue this now so that I remain in the Home?

    Thanks.

  13. ForeclosurePrevention April 6, 2010 at 9:05 pm #

    My name is Charles, I found your blog doing a quick internet search. I wish I could have said the same. I live in Philadelphia, and I have worked with many homowners who were facing foreclosure and the number is only growing. We started a new social networking site, http://www.HomeLeafs.com that helps address foreclosure issue that I believe you would be interested in and hopefully can share to your readers. Can you check out the site (semi-private beta), and/or send me an email to the address I provided? Thanks! Would love to chat!

    ~Charles
    /realestatefeeds

  14. Michael April 27, 2010 at 7:12 pm #

    Any feedback on the results of doing this?

    Has it worked in LA County?

    Has it actually stopped or just stalled a foreclosure?

  15. alex pagle June 22, 2010 at 4:35 pm #

    Does this work if the lender is on the list of exempt licensees? I’m assuming, no?

    • timothymccandless June 23, 2010 at 6:15 am #

      This is about compliance with 2923.5 witch is about contact and workout not exemption

  16. Minnesota Short Sale Agent March 10, 2011 at 12:19 am #

    Thank you for sharing the information regarding foreclosures. Not everyone can be helped in the way they want but the goal is to avoid foreclosure. Foreclosures solutions and short sales offer ways and help in order to keep your home.

    KL – Realtor

    http://www.minnesotashortsales.net
    (763)795-1824

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