California Civil Code 2924.13

Foreclosure laws in California can be complex, and understanding how they apply can make a significant difference for homeowners, lenders, and buyers. The California Civil Code section 2429p is often discussed alongside key foreclosure regulations like California Civil Code 2924.13, which provides critical protections for borrowers and precise requirements for lenders. 

California Civil Code Section 2924p provides prospective owner-occupants and eligible bidders with priority in purchasing foreclosed properties. The goal is to promote owner occupancy, increase homeownership, and revitalize local neighborhoods. At Shapero Law Firm, our San Francisco foreclosure lawyer helps clients navigate these regulations clearly and confidently.

What Is California Civil Code Section 2924.13?

According to the California Legislature, California Civil Code Section 2924.13 outlines the obligations of mortgage servicers before initiating foreclosure proceedings. The law requires that servicers make genuine efforts to contact borrowers and explore all possible alternatives to foreclosure before proceeding. This statute ensures fairness and transparency while allowing borrowers to resolve their situation.

As part of these requirements, the servicer must assign a single point of contact for the borrower during the foreclosure process. This ensures straightforward and consistent communication. The statute also prohibits dual tracking, meaning lenders cannot continue foreclosure efforts while a borrower’s loss mitigation application is under review. These measures work together to reduce unnecessary foreclosures and safeguard homeowner rights.

Borrower Awareness and Legal Support

In many cases, borrowers are unaware of their rights under this law, so having legal guidance can be critical. Understanding how this law interacts with other foreclosure-related provisions, including newer regulations, can prevent costly mistakes and provide additional options for homeowners trying to save their properties.

How It Works in 2025?

According to California Civil Code Section 2924.13, the enforcement of this law in 2025 places a strong focus on proper communication and documentation by mortgage servicers. A servicer may violate the statute if:

1. They fail to provide written communication about the loan for at least three years.
2. They neglect to send a transfer of loan servicing notice as required by law, including under the federal Real Estate Settlement Procedures Act (12 U.S.C. Sec. 2601 et seq.).
3. They do not issue a transfer of loan ownership notice, as required under the federal Truth in Lending Act (15 U.S.C. 1601 et seq.) and related investor requirements.
4. They proceed with or threaten a foreclosure sale after indicating that the debt was discharged or written off, including via an IRS Form 1099.
5. They attempt foreclosure after the statute of limitations has expired.
6. They fail to provide periodic account statements when required by the Truth in Lending Act and other investor rules.

These provisions ensure servicers act responsibly, particularly in complex situations like a second mortgage foreclosure in California, where borrower protections are especially critical. Homeowners facing foreclosure may also find that these rules give them additional leverage to negotiate repayment terms or explore alternatives, such as loan modifications, before losing their homes.

Impact on Homeowners in California

Applying these regulations protects individual borrowers and benefits the housing market. By requiring servicers to adhere to specific guidelines, the law creates a fairer process, giving homeowners time to evaluate their options and seek assistance. In 2025, with the housing market continuing to evolve, understanding these protections has become more critical than ever for California residents.

The Importance of California Civil Code Section 2924.13

According to California’s self-help guide, this statute is essential to prevent rushed or improper foreclosures. Mortgage servicers must reach out to borrowers and review potential foreclosure alternatives before starting any proceedings. Borrowers must also be given a direct contact who can answer questions and provide updates, ensuring they are not left in the dark. Foreclosure cannot move forward while loss mitigation is pending, protecting borrowers from unfair dual tracking.

These legal protections allow homeowners to explore solutions and safeguard their properties. With the introduction of the new foreclosure law in California, these measures are now even more effective in supporting those facing financial challenges. 

It is also a vital step toward reducing unnecessary housing instability, helping families remain in their homes while they work toward resolving their financial issues. The law protects individual homeowners and strengthens community stability by preventing a cascade of foreclosures that could harm property values in local neighborhoods

Get Legal Guidance Today

Facing foreclosure or dealing with a mortgage servicer can feel overwhelming without experienced legal support. At Shapero Law Firm, we provide clear guidance through every step of the process, ensuring your rights under California law are fully protected. 

Our attorneys take the time to review your circumstances, outline practical options, and help you make informed decisions that serve your best interests. For personalized assistance with foreclosure defense or navigating California regulations, contact us today at 415-906-6134.

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