Illegal Repo / foreclosure?

[daxter999]

I co-own a house with my cousin in Bay Area, California. Last year we decided to list it for short sale and then our agent quickly found a buyer. By the time bank approved the short sale (March 2010), the buyer dropped out. The agent said he can't do anything about it.

We decided to keep the house and applied for loan modification (April 2010). Yesterday, when we called the bank (Chase), they said the loan modification has been rejected and the home went to their REO department and the bank owns the house now.

It is bizzare because we never got any foreclosure notice and now they are saying the bank owns the house. When I said this, the bank said they can't do anything about it now and the house is already with a broker for selling it.

We did get a foreclosure notice back in November 2009 when we initiated the short sale, but then they postponed the foreclosure because of pending short sale on the home. Now, I wonder if the bank can legally take away the home without giving us any foreclosure notice again. We want to fight this. We want to know what rights we have and how to go about dealing with the bank now.

 

[army judge]

I co-own a house with my cousin in Bay Area, California. Last year we decided to list it for short sale and then our agent quickly found a buyer. By the time bank approved the short sale (March 2010), the buyer dropped out. The agent said he can't do anything about it.

We decided to keep the house and applied for loan modification (April 2010). Yesterday, when we called the bank (Chase), they said the loan modification has been rejected and the home went to their REO department and the bank owns the house now.

It is bizzare because we never got any foreclosure notice and now they are saying the bank owns the house. When I said this, the bank said they can't do anything about it now and the house is already with a broker for selling it.

We did get a foreclosure notice back in November 2009 when we initiated the short sale, but then they postponed the foreclosure because of pending short sale on the home. Now, I wonder if the bank can legally take away the home without giving us any foreclosure notice again. We want to fight this. We want to know what rights we have and how to go about dealing with the bank now.

You do know that even if you are foreclosed, you have a limited right of redemption in CA.

This means that when you think its over, there is another way out!

This might be an easier option for you to pursue.

Is there a right of redemption in California?

California has a complicated statutory right of redemption after the foreclosure sale has occurred, which would allow a party whose property has been foreclosed to reclaim that property by making payment in full of the sum of the unpaid loan plus costs one (1) year after foreclosure sale unless the original lender made a full price bid then that period is shortened to three (3) months. A borrower does have ninety (90) days after the recordation of a notice of default to cure any default and this is commonly referenced as the redemption period although it is not a true statutory redemption. Junior lien holders cannot redeem. There is nostatutory right of redemption if a deficiency judgment is waived or prohibited at the time of which effectively negates any possibility of a redemption occurring in the scenario noted above.


http://www.foreclosure.com/statelaw_CA.html#5