Right to Cure
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The borrower has a right to cure monetary defaults. A cure is payment of the sum of all amounts in which the secured debt is in default. Written notice of intent to cure must be given to the public trustee at least 15 calendar days before the date of sale. The curing party must also provide evidence of the right to cure. When the intent is received by the public trustee, the notice of intent will be provided to the foreclosing party with a request for a statement of all sums necessary to cure. The sums necessary to cure include all amounts in which the secured debt is in default (including permitted costs and expenses of the holder and holder’s attorney), plus the fees, costs and expenses of the foreclosure sale. The use of good faith estimates is authorized, so long as the cure statement states that it is a good faith estimate effective through the last day to cure as indicated on the cure statement.
The foreclosing party will file a statement of the cure amount with the public trustee. The statement must also state the period for which it is valid. A cure statement is required to be effective at least until the earlier of 10 days after the date of the cure statement or the last day to cure, and for no longer than the earlier of 30 days after the date of the cure statement or the last day to cure. The amount must be paid to the public trustee by noon the day before sale.
The sale will be automatically postponed if the foreclosing party does not provide a statement of the sums due on or before noon of the 7th calendar day before sale. The sale will also be continued if the foreclosing party receives a request for a cure statement more than 30 days before the sale but does not provide a cure statement within 10 business days after receipt of the request.
If the sale is continued for failure to provide a cure statement and a cure is subsequently made, interest is allowed at the regular rate provided in the evidence of debt for the period the sale was continued. If no cure is made, interest at the default rate is allowed for that period.
Waiver of the right to cure, or an agreement to shorten the time period to exercise a right of cure, made before the date of default under the instrument evidencing the lien being foreclosed, or under the evidence of debt secured by the lien being foreclosed, is void against public policy.
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