Private Lenders: California Courts Just Got More Power to Rewrite Your Foreclosure

Section 2924.13(f) adds broad equitable remedies to borrower lawsuits

What can a judge do if a borrower claims an unlawful practice under the new statute?

With over 23 years in real estate litigation and foreclosure, most private lenders know that California courts already had the power to block or delay a sale. But Civil Code § 2924.13(f) now puts that flexibility into writing—giving judges a list of tools to modify foreclosure outcomes based on how serious the alleged violations are.

“The court may provide equitable remedies… including, but not limited to, striking all or a portion of the arrears claim, barring foreclosure, or permitting foreclosure subject to future compliance and corrected arrearage claim.”

The Court Can Adjust the Arrears—Not the Loan

If a borrower sues to stop foreclosure and claims that an unlawful practice occurred (see earlier posts for the six specific violations), the court can now do more than just delay the sale. The judge may strike late fees or part of the arrears, stop the foreclosure entirely, or allow it to move forward once any compliance gaps are fixed.

The good news: nothing in this section allows the court to cancel the loan, forgive the principal, or erase the entire debt. Lenders who maintained compliance or corrected errors can still enforce the loan with proper documentation.

Stay Ready to Respond

If a borrower files a lawsuit followed by a TRO application—even after a clean certification has been recorded—lenders should be prepared to respond immediately. Private lenders should have a plan in place to escalate any borrower litigation and coordinate with legal counsel quickly, so that timely opposition can be filed and enforcement efforts are not delayed.

Follow for more as each part of this statute is unpacked and explained from a private lender’s perspective.