Private Lenders: Don’t Let Silence Sink Your Foreclosure Rights
Why one missing message could derail your compliance under California’s new law
With over 23 years of experience in real estate litigation and foreclosure, I’ve reviewed hundreds of loan files—many involving private lenders who service their loans themselves. Until now, long periods of borrower silence weren’t a problem.
Under California’s new Civil Code § 2924.13, there’s a list of things that count as unlawful practices when foreclosing on a junior lien. Today we’re looking at the first one:
“The mortgage servicer did not provide the borrower with any written communication regarding the loan… for at least three years.”
Sounds simple—but it’s easy to miss.
If you’re a self-servicing private lender, ask yourself:
Have you sent the borrower anything in writing in the last 3 years?
The good news:
“Written communication” isn’t strictly defined.
It could be a letter, email, text, or mailed notice.
You don’t need formal legal documents—just proof you communicated.
Also, most private money loans are short-term (usually one year), so this may not apply to many loans. But if your loan is approaching 3 years and there’s been no contact? Send something now—even a simple status update—with tracking or proof of delivery.
This rule is easy to fix—but only if you catch it early.
More compliance insights coming soon as we continue unpacking this new law.