This website uses cookies to store information on your computer. Some of these cookies are used for visitor analysis, others are essential to making our site function properly and improve the user experience. By using this site, you consent to the placement of these cookies. Click Accept to consent and dismiss this message or Deny to leave this website. Read our Privacy Statement for more.
Home   |   Contact Us   |   Sign In   |   Register
Article Library
Blog Home All Blogs
Search all posts for:   

 

View all (849) posts »
 

California State Military and Veterans Code Updated

Posted By USFN, Monday, March 25, 2019

by Caren Castle, Esq. and Kayo Manson-Tompkins, Esq. 

The Wolf Firm

USFN Member (CA, ID, OR, WA)

 

Effective January 1, 2019, Section 408 of the California Military and Veterans Code was amended.  The amendment, albeit slight, has a major effect on the foreclosure process as it applies to active duty service members in California. 

Prior to January 1, 2019, the statute followed the Federal Service members Civil Relief Act and read:


“This section shall apply only to obligations secured by mortgage, trust deed, or other security in the nature of a mortgage upon real or personal property owned by a service member at the commencement of the period of the military service and still so owned by the service member whose obligations originated prior to the person’s period of military service”


Accordingly, it only applied to service members who entered active military service after the loan originated.

As of January 1, 2019, California increased the protections of active duty service members by amending the section to read:


“This section shall apply only to obligations secured by mortgage, trust deed, or other security in the nature of a mortgage upon real or personal property owned by a service member.”


Thus, the protections afforded under California law have now been expanded to every active duty service member, even if the loan was originated prior to the time that person entered active military service.

Moreover, California now requires a court order in order to proceed to foreclosure sale where the borrower is a service member currently on active duty, and up to one year after the service member has left active duty.  The court order is required to proceed regardless of whether or not the lender is pursuing judicial or non-judicial foreclosure.  The penalty for proceeding to sale without a court order is imprisonment not to exceed one year or a fine not to exceed $1,000.


Therefore, upon identification of a borrower on active duty, or on inactive status within one year of active status, our office will be proceeding with the filing of a judicial foreclosure combined with a request for the appointment of a guardian ad litem.  Upon receipt of an order of the court authorizing the foreclosure sale, we will then proceed with a non-judicial foreclosure.  The non-judicial foreclosure will result in a much faster and less expensive process than continuing with the judicial foreclosure.

© Copyright 2019 USFN. All rights reserved.
March e-Update

This post has not been tagged.

Share |
Permalink | Comments (0)
 
Membership Software Powered by YourMembership  ::  Legal