California Real Estate SalespersonFinancingHard
A Notice of Default is recorded against a borrower's property on March 1. Under California law, up until what point may the borrower reinstate the loan by curing the default and stopping the foreclosure sale?
- AUp until 5 business days before the scheduled trustee's sale
- BAny time before the Notice of Default is recorded
- CThere is no right to reinstate once a Notice of Default is recorded
- DUp until the day the Notice of Sale is recorded
Show answer & explanationAnswer & explanation
Correct answer: A. Up until 5 business days before the scheduled trustee's sale
Under California Civil Code Section 2924c, a borrower has the right to reinstate the loan by curing the default, plus fees and costs, at any time up until 5 business days before the scheduled trustee's sale date.
Why the other options are wrong
- B. Reinstatement is a remedy available after default is recorded, not before.
- C. California law does provide a statutory right to reinstate after a Notice of Default.
- D. The Notice of Sale is recorded well before the sale itself, not the cutoff point.
Right of Reinstatement
California borrowers may cure a default and reinstate their loan up until 5 business days before the scheduled trustee's sale, per Civil Code 2924c.
- Reinstatement requires paying missed payments plus fees and costs
- Cutoff is 5 business days before the trustee's sale date
- Distinct from the right of redemption, which may apply after judicial foreclosure
Memory trick: Five days before the gavel falls, reinstatement calls.