DOES THE BANK HAVE TO ACCEPT MONEY I OFFER THEM TO CURE THE DEFAULT (REINSTATE THE LOAN)?
STATUTORY RIGHT TO REINSTATE LOAN BY PAYING DEFAULT
A lender/bank cannot refuse to accept your payment for the full amount of default at any point prior to 5 business days before the sale. Up until then, per California Civil Code Section 2924, you have a statutory right to “reinstate” the loan by paying the default amount (plus other fees, such as interest, penalties, and costs), and they are required to file a Notice of Rescission of the Notice of Default. Cal. Civ. Code § 2924c(a)(1)
The lender (or its servicer) is also required to provide the borrower with a “beneficiary statement,” which contains information on how much must be paid in order to reinstate the loan. Cal. Civ. Code § 2943.
THE BEST OPTION FOR YOU
If you are facing a foreclosure sale, the attorneys at ANAND LAW can evaluate your situation to determine the best solution for you. Oftentimes, we are successful in preventing foreclosure sales altogether. We have helped homeowners in Los Angeles, Orange, San Bernardino, Riverside, San Diego, San Luis Obispo and Santa Barbara counties. Where homeowners can’t afford to remain in their property, but the lender has still committed wrongdoings, we are often able to secure monetary settlements.
ANAND LAW will take a detailed look at your situation in order to determine what can be done. You may be able to:
- Stop foreclosure sales by obtaining a temporary restraining order (TRO);
- Retain Residence and Rental Properties through Litigation & Negotiation
- Stop foreclosure sales and retain Residence and Rental Properties Through Chapter 11 or Chapter 13 Bankruptcy
- Re-structure mortgage debt so that outstanding balances are equal to the market value of real properties;
- Re-structure mortgage debts by lowering interest rates;
- Remove unsecured & cram down undersecured real property mortgage liens;
- Remove unsecured & cram down undersecured HOA liens;
- Remove certain tax liens;
- Eliminate unsecured debt.