City of El Monte Places Major Obligations on Trustees

El Monte Mayor Andre Quintero

El Monte, California has revised their existing ordinance again by way of Ordinance No. 2800. This revised ordinance is effective September 4, 2012 and makes substantial changes to what is required of the Trustee. El Monte, California has had a foreclosure asset registration ordinance in place since 2008 requiring annual registration of any El Monte property that is in active foreclosure.

The revised Ordinance for the first time, as of September 4, 2012, places obligations on the Trustee who is advancing the foreclosure. While prior to this update the beneficiary or its agent was responsible for the registration, this new Ordinance now defines “agent” to include the Trustee for all registration requirements. The City of El Monte has advised that as a result of this update they consider the Trustee equally responsible for any overdue fees owed due to unregistered or late registered properties.

According to the City, any property that had a Notice of Default recorded on or after August 1, 2010 requires registration, irrespective of outcome.  Registration has several new components, as well.  While not part of the registration process, the beneficiary is required to maintain the property and to keep it secure.  In addition, the beneficiary or its agent is required to give the City notice within ten days of the recording of a rescission of the Notice of Default in order to confirm that the property is no longer in foreclosure.

There are also new post-sale requirements that the Trustee must complete.  When the property is sold to a bona fide purchaser, whether to a third party or the beneficiary, the Trustee must provide the new owner a copy of the El Monte Code chapter 8.60 and El Monte Municipal Code 17.16.040 at least one business date prior to recordation of the Trustee’s Deed Upon Sale.  The Trustee is also required to provide notice to the City of the name, and telephone or email contact for the new purchaser within 10 business days of the Trustee’s Deed Upon Sale recording.

Most importantly, this Ordinance states that the Trustee cannot proceed with the trustee’s sale unless the property has been registered with the City at least 30 days prior to the date of sale identified in the Notice of Sale.  This will require that the Trustee confirm the registration of all El Monte properties in foreclosure prior to issuing the Notice of Sale, or proceeding to sale for files that already have sale dates set. 

Please note that this Ordinance states that any failure to meet these requirements will result in fines or possible prosecution as a misdemeanor depending upon the violation.  Members are advised to consult an attorney regarding the process in El Monte.

Read the Ordinance (No. 2800)

Read the Municipal Code (which is referenced in Ordinance No. 2800)

Read El Monte’s Registration Form

Read the Registration Procedures