Summary
Onerous laws and regulations continuously create wiggle room, which feeds the court system and lawyers but damages property rights, property owners, and trust-deed investors. The period to complete a foreclosure has been significantly extended, if not doubled, from 120 days to 240 (+/-) days.
Overview:
The law focuses on making loans to single-family owners of occupied properties, tightening accusations of fraud by a defaulting borrower to accuse the mortgage broker of fraud. The law invites borrowers and hungry lawyers to sue lenders and mortgage brokers for fraud. The broker may be found guilty of violating the section and may be imprisoned in a county jail for up to 1 year, which has a significant impact on the foreclosure process. It’s crucial to be aware of these legal changes to navigate the foreclosure process effectively.
If a borrower defaults and wants to forestall losing their property in foreclosure, they are invited to file an ex parte application for court jurisdiction and make claims, including substantive disregard for the kitchen sink, which refers to the inclusion of all possible arguments, even those that are not relevant or significant. Judges love this stuff and gobble up the stories since most are ideologically driven and blatantly disregard the order of law.
The shift from a non-judicial to a judicial litigation can significantly prolong the foreclosure process, potentially allowing the borrower to remain on the property for an extended period without making payments. This can force the lender or broker to incur substantial costs, often between $50,000 and $100,000. It’s essential to be aware of these potential risks and challenges, as they are indicative of the prevailing entitlement consciousness in today’s legal landscape.
Furthermore, three additional laws, SB-1079, AB-130, and AB-2424, have been enacted, further complicating the foreclosure process for single-family, one-to-four-family, and all residential income properties. These laws, now in effect, are detailed in articles available on my website, providing you with a comprehensive understanding of their impact on the foreclosure process. My readers can find articles on each of the three new laws mentioned above on my website.
An excellent lawyer will be necessary to guide the accused party through the complex judicial process and the unexpected side punch of an accusation in an ex parte motion that the broker created fraud.
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB3108