Compliance Bulletin

New Foreign Language Translation Requirement for NOD’s and NOS’s
November 12, 2012

The state legislature enacted AB 1599 (1), which requires the provision of a summarized notice of default (NOD) and notice of sale (NOS) for residential 1-4 real property in five foreign languages.  Under existing  Civil Code Section 1632, certain consumer contracts and notices must be translated into Spanish, Chinese, Tagalog, Korean, and Vietnamese.  The Department of Corporations (DOC) is responsible for producing the translations and making them available without charge on its website.Any mortgagee, trustee, beneficiary, or authorized agent (“Servicer”)  who provides the DOC’s translations is deemed to be in compliance with this requirement.

The translated summaries must include the text printed below and must be attached to the borrower’s copy of the NOD or NOS. The summaries themselves are not required to  be recorded or published.  A failure to provide these summaries has the same effect as if the NOD or NOS, as applicable, were incomplete or not provided. These requirements will become operative on April 1, 2013, or 90 days following the  DOC’s  issuance of summary translations, whichever occurs later. This is the text of the required NOD summary that the DOC is required to translate and which the Servicer is required to provide:   

NOTE: THERE IS A SUMMARY OF THE INFORMATION IN THIS DOCUMENT ATTACHED.

SUMMARY OF KEY INFORMATION

The attached notice of default was sent to [name of the trustor], in relation to [description of the property that secures the mortgage or deed of] trust in default]. This property may be sold to satisfy your obligation and any other obligation secured by the deed of trust or mortgage that is in default. Trustor] has, as described in the notice of default, breached the mortgage or deed of trust on the property described above.

IMPORTANT NOTICE: IF YOUR PROPERTY IS IN FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR PAYMENTS, IT MAY BE SOLD WITHOUT ANY COURT ACTION, and you may have the legal right to bring your account in good standing by paying all of your past due payments plus permitted costs and expenses within the time permitted by law for reinstatement of your account, which is normally five business days prior to the date set for the sale of your property. No sale date may be set until approximately 90 days from the date the attached notice of default may be recorded (which date of recordation appears on the
notice).

This amount is ____________ as of ___ (date)____________and will increase until your account becomes current.

While your property is in foreclosure, you still must pay other obligations (such as insurance and taxes) required by your note and deed of trust or mortgage. If you fail to make future payments on the loan, pay taxes on the property, provide insurance on the property, or pay other obligations as required in the note and deed of trust or mortgage, the beneficiary or mortgagee may insist that you do so in order to reinstate your account in good standing. In addition, the beneficiary or mortgagee may require as a condition to reinstatement that you provide reliable written evidence that you paid all senior liens, property taxes, and hazard insurance premiums.

Upon your written request, the beneficiary or mortgagee will give you a written itemization of the entire amount you must pay. You may not have to pay the entire unpaid portion of your account, even though full payment was demanded, but you must pay all amounts in default at the time payment is made. However, you and your beneficiary or mortgagee may mutually agree in writing prior to the time the notice of sale is posted (which may not be
earlier than three months after this notice of default is recorded) to, among other things, (1) provide additional time in which to cure the default by transfer of the property or otherwise; or (2) establish a schedule of payments in order
to cure your default; or both (1) and (2).

Following the expiration of the time period referred to in the first paragraph of this notice, unless the obligation being foreclosed upon or a separate written agreement between you and your creditor permits a longer period, you have
only the legal right to stop the sale of your property by paying the entire amount demanded by your creditor.

To find out the amount you must pay, or to arrange for payment to stop the foreclosure, or if your property is in foreclosure for any other reason, contact:
   ____________________________________
(Name of beneficiary or mortgagee)
    ____________________________________
  (Mailing address)
   ____________________________________
(Telephone)

If you have any questions, you should contact a lawyer or the governmental agency which may have insured your loan.

Notwithstanding the fact that your property is in foreclosure, you may offer your property for sale, provided the sale is concluded prior to the
conclusion of the foreclosure.

Remember, YOU MAY LOSE LEGAL RIGHTS IF YOU DO NOT TAKE PROMPT ACTION.

If you would like additional copies of this summary, you may obtain them by calling [insert telephone number]. This is the text of the required NOS summary that the DOC is required to translate and which the Servicer is required to provide:

NOTE: THERE IS A SUMMARY OF THE INFORMATION IN THIS DOCUMENT ATTACHED.

SUMMARY OF KEY INFORMATION 

The attached notice of sale was sent to [trustor], in relation to description of the property that secures [the mortgage or deed of trust in
default]. 

YOU ARE IN DEFAULT UNDER A (Deed of trust or mortgage) DATED ____. UNLESS YOU  TAKE ACTION TO PROTECT YOUR PROPERTY, IT MAY BE SOLD AT A PUBLIC SALE. IF YOU NEED AN EXPLANATION OF THE NATURE OF THE PROCEEDING AGAINST YOU, YOU SHOULD CONTACT A LAWYER.

The total amount due in the notice of sale is ____. Your property is scheduled to be sold on [insert date and time of sale] at [insert location of
sale].

However, the sale date shown on the attached notice of sale may be postponed one or more times by the mortgagee, beneficiary, trustee, or a court, pursuant to Section 2924g of the California Civil Code. The law requires that information about trustee sale postponements be made available to you and to the public, as a courtesy to those not present at the sale. If you wish to learn whether your sale date has been postponed, and, if applicable, the rescheduled time and date for the sale of this property, you may call [telephone number for information regarding the trustee's sale] or visit this Internet Web site [Internet Web site address] for information regarding the sale of [this property], using the file number assigned to this case [case file number]. Information about postponements that are very short in duration or that occur close in time to the scheduled sale may not immediately be reflected in the telephone information or on  the Internet Web
site. The best way to verify postponement information is to attend the scheduled sale.

(1) AB 1599 adds new Civil Code Section 2923.3 and amends
Civil Code Sections 2924 and 2924f.

Kevin Gould was CBA’s lead lobbyist on AB 1599.

The information contained in this CBA Regulatory Compliance Bulletin is not intended to constitute, and should not be received as, legal advice.  Please consult with your counsel for more detailed information applicable to your institution.

© This CBA Regulatory Compliance Bulletin is copyrighted by the California Bankers Association, and may not be reproduced or distributed without  the prior written consent of CBA.

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