Losing a spouse or close family member is devastating. Unfortunately, many surviving spouses and heirs have also faced the added threat of foreclosure on the very home they shared, often because their name was not on the loan documents.

California addressed this injustice through legislation commonly known as the Homeowner Survivor Bill of Rights, which expanded important foreclosure protections to certain successors in interest after a borrower's death. If you are a surviving spouse or qualifying family member residing in a property subject to a mortgage, this law may provide meaningful protection.

Below is an overview of how the law works and what rights may be available.

 

Overview of the Homeowner Survivor Bill of Rights

California's Homeowner Survivor Bill of Rights was enacted through Senate Bill 1150 and became effective January 1, 2017. The law is codified at California Civil Code § 2920.7.

Prior to its enactment, the protections available under California's Homeowners Bill of Rights (HBOR) generally applied only to borrowers listed on loan documents. Successors in interest, such as surviving spouses, often could not obtain loan information or apply for loss mitigation options.

The updated law extended many HBOR protections to qualifying successors in interest, ensuring that lenders and loan servicers must communicate with and provide procedural rights to eligible individuals after a borrower's death.

 

When the Law Applies

The statute generally applies when:

• The loan is secured by a first lien mortgage or deed of trust;
• The property is the borrower's principal residence; and
• A qualifying successor in interest resides in the home.

The law was particularly aimed at protecting widowed spouses and elderly homeowners who had been living in the home but were not formal borrowers on the promissory note or deed of trust.

 

Who Qualifies as a Successor in Interest?

Under California Civil Code § 2920.7, a successor in interest must:

• Be a natural person;
• Have a qualifying familial relationship to the deceased borrower (including spouse, domestic partner, joint tenant, parent, grandparent, adult child, adult grandchild, or adult sibling);
• Have occupied the property as a principal residence during the six continuous months prior to the borrower's death; and
• Currently reside in the property.

The claimant must notify the loan servicer of the borrower's death. The servicer may request:

• A death certificate or comparable documentation; and
• Proof of the claimant's ownership interest.

The servicer must allow at least 30 days to provide proof of death and at least 90 days to provide proof of ownership before moving forward with foreclosure actions.

 

Required Loan Information

Once a claimant is confirmed as a successor in interest, the loan servicer must provide detailed loan information within 10 days. This includes:

• Outstanding principal balance
• Monthly payment amount
• Interest rate and reset information
• Balloon payment details
• Prepayment penalties
• Delinquency status
• Payoff figures

Access to this information allows successors to determine whether to assume the loan or pursue foreclosure alternatives.

 

Protection Against Dual Tracking

The law incorporates the same prohibition against “dual tracking” that appears in the Homeowners Bill of Rights. Dual tracking occurs when a servicer continues foreclosure proceedings while simultaneously reviewing a borrower (or successor's) application for a loan modification or other foreclosure alternative.

By extending this protection to successors in interest, the statute ensures that lenders cannot move forward with foreclosure while actively reviewing loss mitigation applications.

 

Loan Assumption and Foreclosure Alternatives

A qualifying successor may:

• Apply to assume the loan; and/or
• Apply for foreclosure prevention alternatives such as a loan modification.

While the statute requires servicers to evaluate applications, it does not require approval. Servicers may still apply their underwriting standards and creditworthiness criteria.

If multiple successors exist, the servicer must comply with its obligations as to each individual.

 

Remedies for Violations

If a loan servicer violates the statute, remedies depend on the timing of the violation:

Before a Trustee's Deed of Sale Is Recorded

A successor may seek an injunction to halt the foreclosure sale until the servicer complies. Attorney's fees may be recoverable.

After a Trustee's Deed of Sale Is Recorded

A successor may recover actual economic damages. If the violation was intentional, reckless, or willful, the successor may recover the greater of treble actual damages or $50,000.

The statute also includes limited safe harbor provisions, including protection for servicers that comply with federal successor-in-interest regulations under:

• Regulation X (Real Estate Settlement Procedures Act – 12 C.F.R. § 1024); and
• Regulation Z (Truth in Lending Act – 12 C.F.R. § 1026).

 

Why Immediate Action Matters

Although the law provides strong protections, it requires timely action. Survivors must promptly notify the loan servicer and provide required documentation within statutory timeframes.

Foreclosure proceedings can advance quickly. Delays in asserting successor rights may limit available remedies.

Early legal guidance can significantly improve the likelihood of protecting the home.

 

 

People also ask

 

Can a bank foreclose on a deceased person?
Yes, a lender may continue foreclosure proceedings after a borrower's death, but it must comply with California's successor-in-interest protections if a qualifying heir or spouse comes forward. Servicers cannot ignore statutory notice and documentation requirements before proceeding.

What is a surviving spouse entitled to?
A surviving spouse may be entitled to assert successor-in-interest status, receive loan information, apply to assume the loan, and seek foreclosure alternatives under California Civil Code § 2920.7. Additional inheritance and property rights may arise under California probate and community property laws.

What is the Garn-St. Germain Act in California?
The federal Garn–St. Germain Depository Institutions Act of 1982 generally prohibits lenders from enforcing a due-on-sale clause when property is transferred to certain relatives after a borrower's death. This protection allows qualifying heirs to inherit property without automatically triggering full loan acceleration.

What is the 37-day foreclosure rule?
Under federal mortgage servicing regulations, if a complete loan modification application is submitted more than 37 days before a scheduled foreclosure sale, the servicer generally cannot proceed with the sale until the application is reviewed. This rule is part of Regulation X under RESPA.

Contact Our Office

Foreclosure cases are complex, technical, and highly time-sensitive. Whether you are a surviving spouse asserting successor rights or a homeowner facing a notice of default, immediate legal action can make the difference between saving your home and losing it.

Our office provides comprehensive foreclosure defense services, including:

• Challenging improper notices of default and trustee sales
• Filing court actions to enjoin foreclosure sales
• Negotiating loan modifications
• Litigating wrongful foreclosure claims

If you are facing foreclosure, or believe a lender has violated your rights, do not wait. Contact our office today to schedule a confidential consultation and learn how we can help protect your home and your legal rights.

 

Works Cited

• California Civil Code § 2920.7 (Homeowner Survivor Bill of Rights).
• Senate Bill 1150 (2016) – Enacting the Homeowner Survivor Bill of Rights.
• California Homeowners Bill of Rights (HBOR), Cal. Civ. Code §§ 2923.4–2924.20.
• Real Estate Settlement Procedures Act (RESPA), 12 C.F.R. § 1024 (Regulation X).
• Truth in Lending Act (TILA), 12 C.F.R. § 1026 (Regulation Z).

 

This article is for informational purposes only and does not constitute legal advice. Each case is fact-specific. For advice regarding your particular situation, consult qualified legal counsel.

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