Private Lenders: A New Legal Shortcut Could Stall Your Foreclosure—Fast
Section 2924.13(d) gives borrowers a powerful new tool to halt trustee sales
Can a borrower stop a foreclosure just by filing a petition?
With over 23 years of experience in real estate litigation and foreclosure, procedural defenses to trustee sales are nothing new. Borrowers have always had access to the courts to seek restraining orders and file claims. But this new section of California Civil Code § 2924.13 quietly raises the stakes for private lenders and their trustees.
“Upon a borrower’s petition to the court for relief before the foreclosure sale, the court shall enjoin a proposed foreclosure sale pursuant to a power of sale in a subordinate mortgage until a final determination on the petition has been made.”
The Word “Shall” Changes Everything
Borrowers already had the right to request a Temporary Restraining Order (TRO) to stop a sale. Courts could grant or deny those requests based on legal standards, urgency, and equity. But this statute uses the word “shall”—which signals a mandatory injunction, not a discretionary one.
That means if a borrower files a petition alleging a violation of § 2924.13, the court must stop the sale—even before evaluating whether the claim is true. There’s no requirement in this section for evidentiary support, detailed facts, or even a bond. The law is also silent about what legal procedure applies—TRO? Ex parte request? Regular motion?
Lenders Must Be Ready to Respond Fast
Although borrowers have always been allowed to seek a Temporary Restraining Order on 24-hours’ notice, this new provision creates greater risk because courts are now required to enjoin the sale upon filing. Once a Notice of Default is recorded, private lenders and their trustees should assume that a last-minute court challenge may follow.
Because the certification is already on record, any challenge to it must be met with an immediate legal response. Counsel should be identified in advance and available to prepare opposition quickly if needed. A prepared opposition may be the only chance to avoid a Preliminary Injunction, which can stall enforcement for months or years.
Follow for more as each part of this statute is unpacked and explained from a private lender’s perspective.