March 11, 2014

California’s New “Foreclosure Prevention Act”

California Business Litigation Update

On February 20, 2009, Governor Schwarzenegger signed into law the “California Foreclosure Prevention Act.” The law, until January 1, 2011, and with respect to loans that were recorded between January 1, 2003 to January 1, 2008, prohibits a portage, trustee, or other person authorized to take sale form giving a notice of sale for an additional 90 days if the loan at issue is the first mortgage or deed of trust that the property secures, the borrower occupied the property as his or her principal residence, and the notice of default has been filed.