Are Borrowers Protected from NON-Judicial Foreclosures?

[David Herrera]

My fellow Borrowers, the question has been asked over and over again, what protections do we have against foreclosure? We all saw the Emergency Rules of California Rules of Court, dated April 6, 2020 stays all judicial proceedings to foreclose a mortgage or deed of trust, including any action for a deficiency.These rules will remain in effect until 90 days after the Governor declares that the state of emergency related to the COVID-19 pandemic is lifted, or until amended or repealed by the Judicial Counsel.

Now, there is emergency bill AB 828 which is pending but what it will do is enforce a moratorium on foreclosures. This applies to all judicial and non-judicial foreclosures. YES. That's right, you read it correctly. =) 

In summary, no judicial foreclosure proceeding may be commenced, nor may nonjudicial foreclosure sales occur, until 15 days after the applicable Emergency Rule and shelter in place orders expire. Even though it is still pending so not fully enacted yet, I have experienced first hand what the mere existence of this bill does to aid a borrower facing non-judicial foreclosure. No title company will insure the sale of a foreclosed property to a subsequent buyer knowing this bill is out there, since questions could be raised as to whether it was conducted in a climate that either chilled the bidding process or perhaps violated social distancing. Stay up to date with this Bill and keep pushing through to the other side!

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=201920200AB828