California Real Estate Practice Exam

If Notification of Default was filed on July 15 and publication of sale was started on Oct. 15, the right of the Trustor after Oct. 15 is:

1. neither a nor b

2. pay the back payments and late charges and fees

3. pay the balance due, including all penalties and late charges

4. either a or b

The correct answer is: neither a nor b

In this scenario, we are considering the rights of the Trustor, who is the borrower in a trust deed transaction, once the notification of default has been filed and the publication of sale has begun. When a Notification of Default is filed, it essentially indicates that the Trustor has fallen behind on payments. After the publication of sale starts, the Trustor's options for reinstatement or cure of the default become more limited. The correct response acknowledges that after publication of sale starts, the Trustor no longer has the simple option to pay back payments and late charges to reinstate the loan, which may have been available prior to that point. Typically, once the sale publication occurs, the Trustor would be faced with the need to pay the full amount due to stop the foreclosure process, including any penalties and late charges. Therefore, if the choices imply that neither paying back payments nor paying the balance due is viable after October 15, it correctly reflects the steeper consequences the Trustor faces post-publication of sale. The Trustor's rights become more restrictive as the foreclosure process progresses, emphasizing the need for prompt action before publication occurs. Hence, the answer indicates that after October 15, neither the option to pay just back payments nor the