California Foreclosure Prevention Act

The California Foreclosure Prevention Act (CFPA) was established to add an additional 90 days from the point of a Notice of Default has been filed, till the actual Trustees sale date in a non-judicial foreclosure.
 
This law allows a new timeframe of at least six months from the time the homeowner becomes deliquent, till a Notice of Trustee’s sale can be set.

The CFPA does not operate on the basis of borrower eligibility. Instead, the CFPA is directed at the mortgage loan servicers. In general, a borrower is eligible for an additional 90 days in the foreclosure process if:

• The borrower’s lender/servicer has not obtained an order of exemption from the state;
• The borrower obtained the loan between January 1, 2003 and January 1, 2008;
• The loan in default is the first mortgage or deed of trust on the property;
• The borrower occupies the property as his or her principal residence;
  The borrower has not surrendered the property to the mortgage loan servicer;
• The borrower has not contracted with a business advising people who have decided to leave their homes regarding how to extend the foreclosure process, and
• The borrower has not filed for bankruptcy. Read more