NOD's in Ca. Bill of Rights


Are NOD or NTS? dismissed while the lender is deciding to offer a permanent or trial loan mod?




Davidz provided a link to the newly enacted CA Homeowner Bill of Rights (above) and here is the excerpt that may answer your question >** ?"Restriction on dual track foreclosure:**?Mortgage servicers are restricted from advancing the foreclosure process if the homeowner is working on securing a loan modification. When a homeowner completes an application for a loan modification, the foreclosure process is essentially paused until the complete application has been fully reviewed."

Notwithstanding the above … The NOD and NTS are** not*?“dismissed” … yet the trustee sale will **not* take place unless/until the lender/servicer has formally notified the borrower that the loan mod cannot (or will not) move forward … in such an event, the borrower is off the "loan mod track" and back on the "foreclosure *track" *(only one “track” can be pursued by the lender/servicer at a time). Note also that a NTS is only valid for 365 days and must be refiled if no trustee sale occurred within the 1 one-year time limit.


Am I correct that the NOD never expires? If so, the homeowner needs to know that the lender can proceed from when the foreclosure was paused. If the NTS is refiled the auction could be in 21 days.


One last question. If homeowner gets a Cancellation and then redefaults does the foreclosure process start from the beginning - a new NOD - or can the lender restart the process at the point when the Cancellation was issued?