California’s Foreclosure Codes

It’s to be expected that a non-judicial process that
divests a defaulting property owner of their title to real
property would be closely regulated to insure fair dealing
and uniform application throughout the state.

The following civil codes are the main statutes
controlling foreclosure involvement in California. They have
been parsed out of the main civil code compilation to
facilitate your familiarity and ready reference.

If you intend to buy foreclosure properties from
defaulting owners, before the trustee’s sales occur, you
should thoroughly familiarize yourself with the three codes
dealing with rent skimming, home equity purchasing and
acting in the capacity of a foreclosure consultant.

On the other hand, if you just intend to specialize in
buying at the trustee’s sales then you should thoroughly
read all of the codes. That’s because, despite your
original intentions, you will occasionally find yourself in
a situation where you are wheeling and dealing with an owner
before the sale. So be smart and safe rather than ignorant
of the law and subsequently sorry.

Civil
Code Section 890 et seq. – Rent Skimming

Civil
Code Section 1695 et seq. – Home Equity Purchasing

Civil
Code Section 2924 – Trustee’s Sale Procedure

Civil
Code Section 2945 et seq. – Foreclosure Consultant

Civil
Code Section 1367 et seq. – Foreclosure on HOA Assessments, Minimums, Redemption, Etc.

Since these laws are being continually modified and fine
tuned by our busy legislators, you’d be smart to download
them annually to insure you’re referencing the current law,
with all its changes, rather than continuing to rely on
older, out-of-date versions. Here’s a simple routine to keep
up-to-date. Pick a recurring date that you’ll remember, such
as your birthday, and on that day each year log onto the
California Law web site <http://www.leginfo.ca.gov/calaw.html>

for the current version of each code.