San Rafael, CA asked in Consumer Law, Foreclosure and Real Estate Law for California

Q: Is it true, if Calif residential mortgage lender hasn't collected a pmt in over 10yrs-you only have to pay orig bal due

That they can't collect any extra fees and instead have to take balance back to orig amount due

2 Lawyer Answers
James L. Arrasmith
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  • Foreclosure Defense Lawyer
  • Sacramento, CA
  • Licensed in California

A: It is generally not true that a California residential mortgage lender cannot collect any extra fees and must take the balance back to the original amount due if no payments have been made for over 10 years. The specific terms of a mortgage loan are set out in the loan agreement, and they may include provisions related to fees, interest, and late payments.

If a borrower has not made a payment on their mortgage in over 10 years, the lender may be able to initiate foreclosure proceedings and take legal action to collect the outstanding debt. However, the specific laws and regulations related to mortgage lending and foreclosure can vary by state, so it is important to consult with a legal or financial professional to understand the specific requirements and limitations in California.

If you are in a situation where you are having trouble making mortgage payments or are facing foreclosure, it is important to seek professional advice as soon as possible to understand your options and potential consequences.

In California, the foreclosure process is governed by the California Civil Code, which includes the requirements that lenders must follow in order to initiate foreclosure proceedings. California Civil Code Section 2924 outlines the procedures that must be followed before a foreclosure sale can be held, including the requirement that the lender must provide notice to the borrower and record a notice of default with the county recorder.

Regarding the specific issue of whether a lender can collect fees and interest on a mortgage loan if no payments have been made for over 10 years, the answer would depend on the terms of the mortgage agreement and the specific circumstances of the case. If a borrower has not made any payments for an extended period of time, the lender may be able to initiate foreclosure proceedings and take legal action to collect the outstanding debt.

If you have specific questions about a mortgage loan or are facing foreclosure, it is recommended that you seek advice from a licensed attorney who has expertise in the area of mortgage lending and foreclosure in California.

Leon Bayer agrees with this answer

Leon Bayer
Leon Bayer
  • Consumer Law Lawyer
  • Long Beach, CA
  • Licensed in California

A: There is a little bit of fact behind the question you raised. In California, the note and deed of trust remain fully enforceable for 10 years AFTER the maturity date of the note.

For example, if you have a 15 year loan and you never made any payment, the lender still has 10 years AFTER the 15-year mark has been reached to enforce the note and deed of trust, including all the interest and late fees. During that 10-year period, they can foreclose, or even sue you.

You should see a real estate lawyer immediately to have your loan documents reviewed and to receive advice specific to your situation.

Sometimes a bankruptcy case can put you in a better position.

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